UAE’s e& Takes $400mn Majority Stake In Uber-Owned Ride-Hailer Careem’s Super App
Emirates Telecommunications Group Company (e&) has agreed to acquire a 50.03% stake in a super app managed by Careem, Uber Technologies’ (subsidiary, in a $400 million acquisition, e& stated on Monday. Accordingly, Uber’s stake in the spinout is currently undisclosed.
The acquisition will be financed from the existing cash balance, the telecoms operator said in a regulatory disclosure on Abu Dhabi Securities Exchange (ADX) on Monday.
The acquisition of the 50.03% stake will allow e& to accelerate the development of the company and create a regional Super App champion, it added.
The acquisition is in line with the $57 billion telecoms group’s strategic plans to diversify operations and extend its reach globally. It became the largest shareholder in Vodafone Group after boosting its holdings to 14% earlier this year. Last year, e& signed an agreement with South Korea’s Bespin Global, a multi-cloud solution provider, to form a joint venture with an initial capital of $10 million.
Careem’s ride-hailing business will be separated from Careem Super App and will be fully owned by Uber, the statement said. Uber bought its Dubai-headquartered rival Careem, which operates predominantly in the Middle East, for $3.1 billion in 2019.
Careem Technologies will focus on the growth of the company’s “super app,” which offers dozens of services beyond ride-hailing in one app.
