UAE-based multinational technology and investment firm, e& has signed a binding agreement with Uber Technologies in order to invest $400 million in exchange for a majority stake in Careem’s super-app business.
e& said in a regulatory disclosure on Abu Dhabi Securities Exchange (ADX) that the transaction cost will be financed from the existing cash balance.
Under the agreement, Careem’s ride-hailing business will remain fully owned by Uber and continue to be available on the existing app.
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.
Hatem Dowidar CEO – e&
“Super Apps have catalyzed 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 has 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. The Careem Super App is a digital native that has built a rapidly growing payments, food, and grocery delivery network, and a platform for other digital businesses to scale from. The shared vision between e& and Careem is exciting, we believe that together we’ll be able to enhance our impact across different markets in the region while pushing the boundaries of customer experience.”
With this new investment, Careem plans to accelerate the realization 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 program across the region while adding even more partner services to the app.
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.
“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,” Mr. Dara Khosrowshahi, CEO of Uber.
Careem CEO and co-founder Mr. Mudassir Sheikha said that, “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. 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.”
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