UAE’s Emirates Telecommunications Group Company (e&) has announced the acquisition of a majority stake worth $400 million in the Careem super-app, owned by Uber.
Announced on Monday, e& will become a majority investor alongside Uber who will still remain the whole owner of Careem.
The move accelerates Careem’s plans towards becoming an “everything app” in the region.
Currently, the Careem application offers multiple services including food delivery, groceries, payment solutions and third-party services such as home cleaning, laundry and car rental, offering services in over 10 countries across the region.
e&’s extensive customer base
Through this acquisition, Careem is set to benefit from e&’s extensive customer base.
Hatem Dowidar, Group CEO, e& said, “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.
“The Careem Super App, is a digital native that has built a rapidly growing payments, food and grocery delivery network, and a platform for other digital businesses to scale from. The shared vision between e& and Careem is exciting, we believe that together we’ll be able to enhance our impact across different markets in the region while pushing the boundaries of customer experience,” he added.
Dara Khosrowshahi, CEO of Uber said, “Over the last decade, Careem helped revolutionise mobility across the greater Middle East while building an incredible brand. I am thrilled to partner with Careem, and welcome e&, as we grow the Careem super app to deliver more services to millions of people in this fast-moving part of the world. All of us at Uber are excited about the impact the Careem platform will have on this region over the next decade and beyond.”
Khalifa Al Shamsi CEO, e& life said, “We are thrilled to welcome Careem into the e& family with this exciting and ground-breaking deal. There are several growth opportunities between Careem and e& life as the “consumer digital” arm of e&. Our current strengths, primarily in fintech and multimedia, coupled with Careem’s services and regional footprint, will accelerate our joint vision towards a regional super app. With this partnership between e&, Careem and Uber we will set new standards of product innovation and customer experience throughout the region.”
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.”
Last week, Careem launched a new feature – the One Click Checkout. The new service enables Careem customers to be able to use their pre-existing account details on Careem for easier checkout on third-party applications like 6thstreet.com.
The feature is currently available for 6thStreet.com and will soon launch for other merchants in the region.
The initiative intends to provide customers with a seamless shopping experience while helping merchants increase sales conversion rates.
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