UAE Based e& To Venture $400m in Careem Super App For Majority Stake
Under a legally binding deal with Uber Technologies, the UAE telecom-tech giant e& is acquiring a majority share in Careem Super App. Uber Technologies will continue to own all of Careem's ride-hailing activities.
This will be done by creating a separate entity around Careem Super App, which in the recent past has expanded into multiple services, including remittances. "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& said in a statement.
Careem's Super App will have e&, Uber, and all three of Careem's co-founders as majority shareholders thanks to an investment of $400 million. The Careem Super App provides third-party services like home cleaning, auto rentals, and laundry in addition to food and grocery delivery, micromobility, a digital wallet, and various fintech services.
Careem hopes to "accelerate the realisation of its ambitious aim to develop the first 'everything app'" with the new financing. This will involve enhancing the region's primary food, grocery, and financial services as well as the Careem Plus subscription service.
"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," the statement added.