UAE-based telecommunications and technology company, e& has signed a deal worth $400 million to acquire a majority stake in Careem’s Super App spinout from Uber. The acquisition is part of e&’s efforts to expand its consumer digital offerings, and the company has signed a binding agreement with Uber for a 50.03% stake in Careem’s Super App business. Meanwhile, Careem’s ride-hailing business will remain fully owned by Uber and continue to be available with all other services on the existing app for customers. The Careem Super App offers over a dozen services, including food and grocery delivery, micro-mobility, a digital wallet, a suite of FinTech services, and additional third-party services such as home cleaning, car rental, and laundry.
The transaction cost will be financed from e&’s existing cash balance, and the company plans to accelerate its development with the latest investment and support the creation of a regional Super App champion. e& CEO Hatem Dowidar said that “Super apps have catalysed the economic, social and cultural growth of emerging markets today… 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.”
The Careem Super App was unveiled in April 2020 to expand the company’s offerings. It has operations in more than 80 cities, covering nine countries across the Middle East, Africa and South Asia. This acquisition is in line with e&’s strategic ambition of scaling up consumer digital offerings and accelerating e&’s transformation to a global technology group, providing it with access to multiple digital verticals, strong talent and capabilities, and new geographies. The deal is subject to regulatory approvals, customary closing conditions and administrative procedures.
The acquisition of Careem’s Super App spinout is not the first move of e& to expand its presence in the market. The company has been on an acquisition spree, signing a deal last year with Abu Dhabi holding company ADQ to acquire a majority stake in video streaming service Starzplay Arabia. This year, e& increased its stake in Vodafone Group to 14% as it continues to consolidate its shareholding in the British company as part of its international expansion plans. Super apps, which bundle single apps’ functionalities into one platform for many different services, have been gaining increasing investor interest in the Middle East, and e&’s latest investment will accelerate the development of the company and support the creation of a regional Super App champion.
