e& to acquire majority stake in Careem Super App, invests $400 million
On Monday, e& announced that it has signed a legally binding agreement to purchase the majority of Careem’s Super App spinoff from Uber Technologies, Inc. (“Uber”) and its subsidiary, Careem.
Uber will continue to be the sole owner of Careem’s ride-hailing operation, which will continue to offer all other Careem services to clients on the current app.
Together with Uber and all three of Careem’s co-founders, e& is investing $400 million to take a majority stake in Careem’s Super App.
The Careem Super App provides more than a dozen services, including food and grocery delivery, micromobility, a digital wallet and suite of fintech services, as well as other third-party services such as house cleaning, car rental, and laundry.
Customers of Careem are catered to in ten nations in the Middle East, North Africa, and South Asia.
Careem hopes to achieve its goal of building the first “everything app” that serves clients all over the Middle East faster with the help of this fresh financing.
Along with adding more partner services to the app, this will involve growing its primary food, grocery, and financial offerings as well as the Careem Plus subscription programme throughout the region.
Careem anticipates considerable synergies with e& and hopes to gain from e&’s customer base and wealth of expertise scaling complex tech-enabled enterprises across a sizable common geographic footprint.
This investment is consistent with e&’s goal of driving its transformation into a global technology and investments business and growing consumer digital products.
The expansion of e& life’s fintech vertical, e& money, which will be crucial to the super app goal by providing e& money’s potent financial service offerings, will be one of the consumer digital services that e& will use the Careem Super App to enhance the growth.
In recent years, e& has evolved into a multinational technology and investment business. The organization is incorporating cutting-edge technologies into its growing business verticals. Across 16 countries in the Middle East and Africa, e& has 163 million customers.
Hatem Dowidar, Group CEO of e&, said that the demand for a distinctive and smooth consumer experience has led to Super Apps’ success.
With user expectations shifting towards executing their daily tasks on digital platforms, the mobile-first population has given rise to an ecosystem that has supported the adoption of and enlarged the scope for Super Apps.
Uber CEO Dara Khosrowshahi stated that Careem helped change mobility in the larger Middle East over the last ten years while also building an incredible brand.
As we expand the Careem super app to provide more services to millions of people in this rapidly developing region of the world, I am happy to join with Careem and welcome e&. Does Chevron Accept Google pay?
The CEO of e& life, Khalifa Al Shamsi, stated that they are happy to welcome Careem into the e& family with this exciting and ground-breaking partnership.
Being the “consumer digital” division of e&, there are numerous growth potential between Careem and e& life. According to Mudassir Sheikha, CEO and co-founder of Careem, “the possibility to use technology to enhance the lives of people in the region is huge.”
Since Uber acquired the company in 2020, Careem has developed into a multiservice app that offers consumers more than a dozen services.
The completion of the transaction is still dependent on administrative processes, normal closing requirements, and regulatory clearances.
