UAE-based e& is acquiring a 50.03% stake in Uber’s Middle East subsidiary Careem Super App for US$400 million, in a deal that will significantly expand the operator’s e-commerce standing.
Careem Super App offers a broad range of consumer services, ranging from Uber’s ride-hailing and delivery services to e-payments. Its footprint covers markets in the Middle East, Africa and South Asia, so the acquisition is likely aimed at helping e& move into new regions, supporting its goal of becoming a “global technology group”.
Following the acquisition, Careem’s ride-sharing and delivery offerings will be spun off from its business with ownership retained by Uber, but the services will still be available to users of the platform. This indicates that the motivating factor behind e&’s acquisition is the platform’s strength in the e-commerce and digital payments sector.
Reuters reports that Careem Super App has been seeking investors since 2022, and began discussions with e& last month regarding a possible acquisition. Careem’s management team will remain unchanged following the deal, with co-founders Mudassir Sheikha and Magnus Olsson retaining their roles.