UAE operator e& inked a deal with Uber to buy a 50.03 per cent stake in Middle East subsidiary Careem Super App for $400 million, a move designed to provide the operator with access to a number of digital verticals.
In a filing, e& noted the app boasts a range of digital offerings from ride-sharing and delivery services to e-payments, available in the Middle East, Africa and South Asia. It added its investment would advance the platform’s growth to become an e-commerce market leader.
For e&, the tie-up supports its aim to become “a global technology group” and allow it to advance its existing consumer digital services, such as digital payments platform e& money.
Following the transaction, ride-sharing and delivery services will be separated from Careem’s business and will be fully owned by Uber, but will remain available on the e-commerce platform.
The telecoms giant added Careem Super App will continue to be managed by its entrepreneurial team including co-founders Mudassir Sheikha and Magnus Olsson.
Reuters reported Careem Super App had been on the hunt for investors since 2022 and that it started exploring the acquisition deal with e& last month.