e& has announced that it entered an agreement with Uber and its subsidiary Careem to acquire a majority stake in Careem’s Super App spinout.
Under the agreement, Careem’s ride hailing business will remain fully owned by Uber and continue to be available on the existing app.
The investment by e& is worth $400 million and will make it the majority shareholder in Careem’s Super App alongside Uber and all three of Careem’s co-founders.
“Super Apps have catalysed the economic, social and cultural growth of emerging markets today,” said Hatem Dowidar, Group CEO, e&.
“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.”
The Careem Super App offers over a dozen services, including food and grocery delivery, micro-mobility, a digital wallet, and a suite of fintech services, along with additional third-party services like home cleaning, car rental, and laundry. Careem serves customers in 10 countries across the Middle East, North Africa, and South Asia.
With this investment, Careem plans to accelerate its ambition to create the first “everything app” serving customers across the Middle East.
It aims to expand its core services and the Careem Plus subscription program across the region while adding more partner services to the app. Careem expects to benefit from e&’s extensive experience in scaling complex tech-enabled businesses and its large customer base.
Dara Khosrowshahi, CEO, Uber, said, “Over the last decade, Careem helped revolutionise 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.”
Mudassir Sheikha, CEO and co-founder of Careem, highlighted the immense potential that technology has in enhancing the lives of people in the region.
“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,” he said.
“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.”
Over the past few years, e& has evolved into a global technology and investment conglomerate, incorporating the latest technologies into its growing business sectors. With a presence in 16 countries spanning the Middle East, Asia, and Africa, e& boasts a subscriber base of 163 million.
