As part of its efforts to transform itself into a worldwide technology investor, Emirates Telecommunications Group has agreed to purchase a $400 million stake in Uber Technologies Inc.’s Middle Eastern subsidiary’s super app managed by Careem.
The telco company, which is also Vodafone Group Plc’s largest investor, has signed a binding agreement with Uber and its regional subsidiary Careem to obtain a 50.03% stake in the super app spin-out, according to an official statement.
Uber, which acquired Careem in 2020, will retain a share in the new entity and continue to possess all of Careem’s ride-hailing operations. The three co-founders of Careem will also own a share in the super app.
Here is Careem’s official statement on the matter:
Today is a big day. A new journey for Careem begins as we welcome the global technology and investment group e& as an investor alongside Uber, supporting our vision to become the first “everything app” in the greater Middle East.We’re thrilled to have two extraordinary partners in e& and Uber, as we enter a new chapter in our mission to simplify and improve the lives of people. It’s a big moment for us, and a big moment for the region. We are filled with gratitude and so excited at the opportunity ahead.
Super apps are platforms that provide customers with a variety of services, ranging from food delivery to financial services. Careem’s super app incorporates a dozen services, including food and grocery delivery, remittances, and third-party services such as laundry.
Careem is presently available in ten countries in the Middle East, North Africa, and South Asia, and the new capital injection will aid the firm in expanding its offerings throughout the region.
Bloomberg reported that Careem began soliciting funds for its super app over a year ago. However, in the meantime, technology companies have had a harder time attracting investments due to rising interest rates, marking the end of the era of easy money.
Emirates Telecom, which was formerly known as Etisalat and has now rebranded itself as e&, is aiming to transform itself into a global technology investor. The company’s CEO recently stated in an interview with Bloomberg TV that it has the “capacity and the wallet” to achieve this goal.
