e& Acquires Majority Stake in Careem Super App with $400M Investment
Careem's ride-hailing services will continue to be fully owned by Uber, and will continue to be available on the existing app.
As part of a binding agreement with US-based mobility firm Uber Technologies, Inc. and its subsidiary Careem, UAE-headquartered communication firm e&, formerly Etisalat, has invested $400 million to acquire a 50.3% stake in Careem's Super App, and become a majority shareholder as a result. Careem's ride-hailing services will continue to be fully owned by Uber, and will continue to be available for customers on the existing app.
Founded as a ride-hailing in Dubai in 2012 by Magnus Olsson and Mudassir Sheikha, Careem launched its super app in April 2020 which offers a range of services including grocery and good delivery, a digital wallet and fintech services. The Careem Super App hopes to become the Middle East's first ‘everything app’ with additional third-party services that cover home cleaning, laundry and car rental across 10 countries in the Middle East, North Africa and South Asia.
"The opportunity to use technology to leapfrog the lives of people in the region is enormous," Careem CEO Mudassir Sheikha tells StartupScene. "Uber has been an incredible partner over the last three years as we expanded our mission to simplify the lives of people with everyday services beyond ride-hailing. We are excited to bring e& into the family. Their passion for uplifting the region and the synergies across their portfolio are extremely valuable. With two strong partners in e& and Uber, I have no doubt that we will build the preeminent technology platform of the region."
Having transformed into a global technology and investment group in recent years, e& looks to benefit the Careem Super App with its large customer base, and boost its own consumer digital services by leveraging the super app.
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