Apr 10, 2023 - Economy & Business
Uber to sell majority stake in Middle East super app Careem
Emirates Telecommunications Group agreed to pay $400 million for a majority stake in the super app of Careem, the Middle East subsidiary of Uber.
Why it matters: This reflects major restructuring efforts by both companies.
- ETG, a 47-year-old group formerly known as Etisalat and now as e&, is seeking to transform from a regional telecom giant into a global tech and investment group.
- Uber, which bought Careem for $3.1 billion in late 2019, continues to divest noncore assets. Last month, Bloomberg reported that Uber is considering a spinoff of its freight logistics unit, while a few years back it spun out the delivery robots business and sold its flying taxi business.
Details: The deal is being structured as an independent spinout, with Uber retaining full ownership of Careem's ride-hail business.
- E& will hold a 50.03% stake of what is now being called Careem Technologies.
More, per CNBC: "Careem Technologies will focus on the growth of the company’s 'super app,' which offers dozens of services beyond ride hailing in one app. Some of those services include Careem Quik grocery delivery in 15 minutes or less, food delivery, PCR test booking, digital payments and remittances transfers, bicycle rentals, laundry and cleaning services and event ticket booking."