- Careem, an Uber-owned ride-hailing service, will undergo a spinout called Careem Technologies with support from its parent company and tech holding company e& based in Abu Dhabi. e& will acquire a 50.03% majority stake in the spinout with a $400 million investment. Careem's ride-hailing business will still be fully owned by Uber, which bought it for $3.1 billion in 2019. The exact size of Uber's stake in the spinout remains undisclosed.
- The emphasis of Careem Technologies will be on expanding the company's "super app," which provides various services beyond ride-hailing all in one application. The app includes multiple services like Careem Quik, which delivers groceries in 15 minutes or less, food delivery, PCR test scheduling, digital payments, remittance transfers, bicycle rentals, laundry and cleaning services, and event ticket booking.
Why it matters
Careem began raising funds for its super app over a year ago. However, due to rising interest rates, it has been more challenging for technology firms to attract investment. e& is investing in Careem Technologies as part of its broader plan to shift from a telecommunications company to a larger global technology and investment group. Holding a majority stake in Careem Technologies aligns with the company's objective to expand and grow its digital consumer offerings.