A. SREENIVASA REDDY (ABU DHABI)
Emirates Telecommunications Group Company (“e&”) has signed a binding agreement with Uber Technologies to sell 12.5% of its 50.03% stake in Careem Technologies for a total cash consideration of $100 million, according to a stock market disclosure.
Upon completion of the transaction, e& will retain 37.53% ownership in Careem Technologies, the disclosure said.
The latest transaction relates to Careem Technologies, also known as Careem Everything App, and not Careem’s ride-hailing business.
Uber had acquired Careem in 2020 and retained full ownership of Careem’s ride-hailing business. In April 2023, e& signed a binding agreement with Uber and Careem to acquire a majority stake in Careem’s Super App spinout, while the ride-hailing business remained fully owned by Uber.
e& completed the acquisition of a 50.03% stake in Careem Technologies on December 8, 2023, in exchange for an investment of $400 million. At the time, e& said Careem Everything App was a new entity created by carving out the non-rideshare businesses from Careem. Careem’s rideshare business remains fully owned by Uber.
The original investment was aimed at supporting the expansion of Careem’s Super App business, which includes food and grocery delivery, micro-mobility, a digital wallet and fintech services, and additional third-party services.
According to e&’s latest disclosure, Careem Technologies accelerated revenue growth and gained market share in the UAE over the last two years. Gross transaction value (GTV) in core services grew almost five times, driven by momentum across segments including Food, Quik, Plus and Pay.
The progress reinforces Careem’s position as a high-growth lifestyle multi-vertical platform, according to the disclosure.
e& said the partial stake sale to Uber will allow Careem Technologies to benefit from Uber’s global technology experience and platform synergies, positioning the company for its next phase of growth.
The disclosure said the transaction also reflects e&’s increased strategic focus on its core businesses and disciplined capital allocation priorities, while maintaining exposure to Careem Technologies and remaining aligned with its future growth trajectory.
e& said it will continue to work closely with Careem’s management and fellow shareholders to support and promote the company as a high-potential growth platform with attractive long-term prospects.
In addition to the $100 million cash consideration, e& has a put option giving it the right to require Uber to purchase its remaining shares in Careem Technologies. Uber also holds a reciprocal call option giving it the right to require e& to sell those shares.
The options are exercisable between December 1, 2031 and January 31, 2032, according to the disclosure.
Closing of the transaction remains subject to regulatory approval and customary closing conditions, e& said.