e& to Acquire Majority Stake in Careem Super App
e& has announced the signing of a binding agreement with Uber Technologies, Inc. (“Uber”) and its subsidiary Careem to acquire a majority stake in Careem’s Super App spinout.
Careem’s ride hailing business will remain fully owned by Uber and continue to be available with all other Careem services on the existing app for customers.
e& is investing $400 million to become a majority shareholder in Careem's Super App alongside Uber and all three of Careem's co-founders.
The Careem Super App offers over a dozen services including food and grocery delivery, micro-mobility, a digital wallet and suite of fintech services, and additional third-party services such as home cleaning, car rental and laundry.
Careem serves customers in 10 countries across the Middle East, North Africa and South Asia.
With this new investment, Careem plans to accelerate the realisation of its ambitious vision to create the first “everything app” serving customers across the Middle East.
This will include expanding its core food, grocery, and fintech services and the Careem Plus subscription programme across the region while adding even more partner services to the app.
Careem expects significant synergies with e& and anticipates benefiting from e&’s large customer base and extensive experience scaling complex tech enabled businesses across a largely shared geographic footprint.
This investment is in line with e&’s strategic ambition of scaling up consumer digital offerings and accelerating its transformation to a global technology and investments group.
In recent years e& has transformed into a global technology and investment group. The company is integrating emerging technologies into its expanding business verticals. e& has 163 million subscribers across 16 countries in the Middle East, Asia and Africa.
Hatem Dowidar, Group CEO, e& commented, “Super Apps have catalysed the economic, social and cultural growth of emerging markets today. The popularity of super apps has come from the need to provide a unique and seamless customer experience.
"The mobile first population have given rise to an ecosystem that has encouraged the use and also expanded the scope for super apps with user expectations turned towards performing their daily activities on digital platforms.
Dara Khosrowshahi, CEO, Uber said: “Over the last decade, Careem helped revolutionize mobility across the greater Middle East while building an incredible brand.
"I am thrilled to partner with Careem, and welcome e&, as we grow the Careem super app to deliver more services to millions of people in this fast-moving part of the world. All of us at Uber are excited about the impact the Careem platform will have on this region over the next decade and beyond.”
Khalifa Al Shamsi CEO, e& life said: “We are thrilled to welcome Careem into the e& family with this exciting and ground-breaking deal. There are several growth opportunities between Careem and e& life as the “consumer digital” arm of e&.”
Careem CEO and co-founder Mudassir Sheikha said: “The opportunity to use technology to leapfrog the lives of people in the region is enormous. 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."