e& invests $400m in Careem's Super App for majority stake
e& is investing $400m to become a majority shareholder in in Careem’s Super App spinout alongside Uber and all three of Careem's co-founders under an agreement signed with Uber and its subsidiary Careem. Careem’s ride hailing business will remain fully owned by Uber and continue to be available with all other Careem services on the existing app for customers. Completion of the transaction remains subject to regulatory approvals, customary closing conditions, and administrative procedures.
With this new investment, Careem plans to accelerate the realisation of its vision to create the first “everything app” serving customers across the Middle East. This will include expanding its core food, grocery, and fintech services and the Careem Plus subscription programme across the region while adding even more partner services to the app. Careem expects significant synergies with e& and anticipates benefiting from e&’s large customer base and extensive experience scaling complex tech enabled businesses across a largely shared geographic footprint.
Hatem Dowidar, Group CEO, e& commented, “Super Apps have catalysed the economic, social and cultural growth of emerging markets today. The popularity of super apps has come from the need to provide a unique and seamless customer experience. The mobile first population have given rise to an ecosystem that has encouraged the use and also expanded the scope for super apps with user expectations turned towards performing their daily activities on digital platforms.”
This investment is in line with e&’s strategic ambition of scaling up consumer digital offerings and accelerating its transformation to a global technology and investments group. It provides e& with access to multiple digital verticals, new innovative digital services, strong talent, and new geographies. e& will leverage the Careem Super App to boost the growth of its consumer digital services, including the expansion of e& life’s fintech vertical, e& money, which will play an important role in the super app vision by providing e& money’s powerful financial service offerings.
Careem CEO and co-founder, Mudassir Sheikha said, “The opportunity to use technology to leapfrog the lives of people in the region is enormous. Uber has been an incredible partner over the last three years as we expanded our mission to simplify the lives of people with everyday services beyond ride-hailing. We are excited to bring e& into the family. Their passion for uplifting the region and the synergies across their portfolio are extremely valuable. With two strong partners in e& and Uber, I have no doubt that we will build the preeminent technology platform of the region."
In recent years e& has transformed into a global technology and investment group. The company is integrating emerging technologies into its expanding business verticals. e& has 163 million subscribers across 16 countries in the Middle East, Asia and Africa.
Since Uber’s acquisition in 2020, Careem has evolved to become a multiservice app offering users over a dozen services.