Uber sells $400 million stake in super app company Careem

Careem, the Middle East-based ride-hailing company that was acquired by Uber in 2019, is spinning off its super apps business into a new startup backed by Emirates Telecommunications Group Company with $400 million.

Emirates Telecommunications, the UAE telecommunications giant now known as e&, announced on Monday that it has reached an agreement with Uber to buy a 50.03% stake in a new company called Careem Technologies.

The deal will see Careem split into two companies, Careem Rides and Careem Technologies, according to a blog post by Careem CEO and co-founder Mudassir Sheikha.

Clear is aiming to make its Super App unit a dominant business.

Careem Rides, which will be wholly owned by Uber, will employ 260 people and focus on its core ride-hailing product. Ashish Labroo, who will begin reporting to Uber’s Rides leadership, will lead Careem Rides.

Careem Technologies will operate the “Super App” along with all other verticals, says Sheikha. This company will be owned by e&, Uber and Careem’s co-founders, including Sheikha and Magnus Olsson. This unit, which will be headed by Sheikha, will have approximately 1,400 employees.

Careem was founded in 2012 as a ride-hailing rival to Uber and has since added food and package delivery, bus services and credit transfers. Careem has made a number of acquisitions such as RoundMenu and Commut as it expands its business. Uber bought Careem in 2019 for $3.1 billion.

This latest move shows that Careem’s founders and its latest investor see the most potential in services that go far beyond ordering rides. Available in 10 countries, the Super app combines all of Careem’s products such as food delivery, bike rental, financial services that allow users to send and receive payments, and third-party services such as cleaning into one platform.

Sheikha said the $400 million in new funding will be used to “expand the Super app and build category-leading verticals across all our key markets.”