A UAE-based telecommunication provider formerly known as Etisalat has acquired a stake in the Uber-owned ride-hailing service, Careem.
Careem’s ride-hailing business remains fully owned by Uber, which acquired it for $3.1 billion in 2019. Uber’s stake in the spinout is currently undisclosed. Careem Technologies will focus on the growth of the company’s “super app,” which offers dozens of services beyond ride-hailing in one app.
“I am delighted to announce that we have secured $400 million in investment from e&, the global technology and investments group,” Careem co-founder and CEO Mudassir Sheikha wrote in a letter to Careem staff. “This investment will turbo-charge our Super App vision and restart our entrepreneurial journey to build the preeminent technology platform of our region. In Uber and e&, we now have two exceptional partners to help us get there.”
According to a news release, the investment is expected to spur a super app that will provide services beyond ride-hailing in one app. The services include grocery delivery, food delivery, PCR test booking, digital payments and remittance transfers, bicycle rentals, laundry and cleaning services and event ticket booking.
Careem Technologies will be independent, with a different ownership structure to Careem’s ride-hailing business, which remains fully owned by Uber, which acquired it for $3.1 billion in 2019.
The Careem spinout was needed because of restrictions on how new investment could come in from a new party, due to Uber being a publicly listed company. Careem, which was created in 2012 by co-founders Mudassir Sheikha and Magnus Olsson, serves over 80 cities in 10 countries. Although there will be a separate independent ownership in the project, Uber will still be a stakeholder.
The current investment is in line with the company’s objective to increase and scale its consumer digital offerings.
The investment will significantly accelerate Careem’s goal to create “the first ‘everything app’ for customers across the Middle East,” according to the press release. Careem “expects significant synergies with e& and anticipates benefiting from e&’s large customer base” as well as its experience scaling tech businesses across a geographic area that both companies share.
Uber CEO Dara Khosrowshahi has said he is thrilled to partner with Careem and welcome e& as they grow the Careem super app to deliver more services to millions of people in the Middle East.
“Over the last decade, Careem helped revolutionize mobility across the greater Middle East while building an incredible brand,” she said. “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.”