Uber Increases Ownership In Careem Technologies Through US$100 Million Deal With e&
The transaction comes after e& invested US$400 million in Careem Technologies in 2023 and became its majority stakeholder.
e&, the UAE-headquartered global technology group, is selling 12.5 percent of its 50.03 percent stake in Careem Technologies—which operates “the everything app” arm of the UAE-born ride-hailing business, Careem—to the US-based mobility and delivery platform, Uber, for US$100 million.
The transaction comes after e& invested US$400 million in Careem Technologies in 2023 and became its majority stakeholder alongside Uber (which had acquired Careem’s ride-hailing arm in 2019), its three co-founders Magnus Olsson, Mudassir Sheikha, and Abdulla Elyas, and others in the business.
In a social media post about Uber now securing a larger stake in Careem Technologies, Sheikha, co-founder and CEO of Careem, noted that “while e& will remain a meaningful shareholder and close strategic partner, this move brings Careem and Uber back into a closer, deeply familiar alignment.”
A statement from e& highlighted that Careem Technologies had seen nearly fivefold growth in gross transaction value across its core offerings like Food, Quik, Plus, and Pay in the last two years. e&'s partial stake sale in it will now, according to the former's Group Chief Financial Officer, Karim Bennis, "allow Careem Technologies to benefit from Uber’s global technology experience and platform synergies, and position itself for the next phase of growth."
The new transaction will see e& retain a 37.53 percent ownership stake in Careem Technologies. e& also has a put option that gives it the right to require Uber to purchase e&’s remaining shares in Careem Technologies, while Uber holds a reciprocal call option that gives it the right to require e& to sell those shares. Both options may be exercised between December 1, 2031, and January 31, 2032.
