Uber deepens Careem push through e& deal

Emirates Telecommunications Group Company PJSC, known as e&, has agreed to sell part of its stake in Careem Technologies to Uber Technologies for $100 million in cash, reducing its majority position in the Dubai-based platform while keeping a sizeable exposure to one of the region’s best-known technology businesses.

The binding agreement covers 12.5 per cent of e&’s 50.03 per cent holding in Careem Technologies. Once the transaction is completed, e& will retain a 37.53 per cent stake, while Uber will strengthen its position in the company behind Careem’s non-ride-hailing services, including food delivery, grocery, payments and subscription offerings.

The deal marks a recalibration of e&’s digital investment strategy after its $400 million entry into Careem Technologies, completed on December 8, 2023. That investment gave e& control of a newly carved-out business then known as Careem Everything App, while Uber retained full ownership of Careem’s ride-hailing operations. The latest sale does not affect the ride-hailing business, which remains separate from Careem Technologies.

The transaction remains subject to regulatory approvals and customary closing conditions. It also includes future ownership arrangements that could shape Careem Technologies’ shareholder structure after the end of the decade. e& will hold a put option allowing it to require Uber to buy its remaining shares, while Uber will hold a reciprocal call option allowing it to require e& to sell those shares. The options are exercisable between December 1, 2031, and January 31, 2032.

The partial divestment comes as e& seeks to sharpen capital allocation while continuing to participate in Careem’s growth. The telecoms and technology group has been expanding beyond core connectivity through digital services, enterprise technology, fintech and international investments, but the Careem transaction shows a more selective approach to portfolio exposure after a period of aggressive diversification.

Careem Technologies has expanded across several consumer verticals since the 2023 carve-out, supported by demand for app-based services across the UAE and wider region. Its core services include Careem Food, Careem Quik, Careem Plus and Careem Pay, areas that have benefited from higher digital adoption, urban delivery demand and the shift towards bundled lifestyle platforms. Gross transaction value in core services has grown sharply over the past two years, with the UAE remaining one of the platform’s strongest markets.

Uber’s decision to increase its exposure to Careem Technologies reflects renewed interest in super-app and delivery-linked opportunities in the Middle East, a region where digital payments, food delivery and urban mobility remain highly competitive. Uber acquired Careem for $3.1 billion in a landmark transaction announced in 2019 and completed in 2020, giving it control of the region’s largest home-grown ride-hailing platform. The later separation of Careem’s ride-hailing arm from its broader app-based services allowed Uber to retain full ownership of mobility while bringing e& into the growth platform.

For Uber, the $100 million purchase deepens its role in a business that sits close to its global ambitions in mobility, delivery and payments. The company has been seeking operating synergies across ride-hailing, food delivery and logistics, while Careem’s regional brand gives it local reach in markets where consumer habits, regulatory systems and payment infrastructure differ from the US and Europe.

For e&, the sale allows it to realise cash from part of its investment without exiting the platform. The retained 37.53 per cent holding keeps the group aligned with Careem Technologies’ long-term prospects while reducing majority-level exposure. That balance is important as e& continues to manage capital needs across telecom infrastructure, enterprise services, artificial intelligence, cloud, cybersecurity and international assets.

Careem remains a significant name in the Middle East start-up ecosystem. Founded in 2012 by Mudassir Sheikha and Magnus Olsson, the company became one of the region’s most prominent technology exits through Uber’s acquisition. Its evolution into a multi-service platform has mirrored the broader shift among regional consumer technology companies from single-service models to wider ecosystems spanning transport, delivery, finance and lifestyle services.

The latest agreement also underlines the changing economics of regional super apps. Growth in delivery, payments and subscription services has attracted investors, but margins remain under pressure from competition, rider costs, customer incentives and technology spending. Platforms with strong brands and large user bases still need scale, operational discipline and cross-service engagement to convert transaction growth into sustainable profitability.

Regulators will now review the transaction against applicable market and competition requirements. The deal is unlikely to alter Careem’s day-to-day consumer services immediately, but it gives Uber a stronger hand in shaping the platform’s strategic direction. e& has indicated that it will continue working with Careem’s management and other shareholders to support the company’s growth.