ABU DHABI, UAE: Emirates Telecommunication Group Company (e&) signed a binding agreement with Uber Technologies Inc. to acquire a majority stake of 50.03% in Careem’s super-app business, currently part of Careem Networks FZ LLC in exchange for an investment of USD 400 million in the company.
The Careem Super App is a market leader with a strong brand and operations in over 80 cities, covering 9 countries across the Middle East, Africa, and South Asia regions. It operates a digitally native platform with a range of integrated consumer centric digital services such as Food, Groceries, Pay, Bike, Delivery, and additional third-party services.
“Our investment will accelerate the development of the company and creation of a regional Super App champion,” Emirates Telecom noted in a statement.
Careem’s Ride Hailing business will be separated from Careem Super App and will be fully owned by Uber, while remaining an integral part of the Careem Super App. The Careem Super App will continue to offer Careem Rides to users alongside Super App services.
“Following our investment, the Careem Super App will continue to be managed by the leading entrepreneurial team, including original founders Mudassir Sheikha and Magnus Olsson.”.
This transaction is in line with e&’s strategic ambition of scaling up consumer digital offerings and accelerating e&’s transformation to a global technology group. It would also provide e& with access to multiple digital verticals, to strong talent and capabilities, and to new geographies.
e& will leverage the Careem Super App to boost the growth of its consumer digital services, including expediting the expansion of e& money across a wider footprint.
The transaction cost of USD 400 million will be financed from existing cash balance. The transaction is not associated with related parties.
Despite the immediate financial impact will be immaterial to e&’s consolidated financials, it provides important opportunity for revenue growth and diversification over the long term.
Completion of the transaction remains subject to regulatory approvals, customary closing conditions, and administrative procedures.
e& acquires ServiceMarket, an online marketplace for household services