Emirates Telecommunications Group Company – E& – announced on Monday the signing of a binding agreement with Uber Technologies and its subsidiary Careem to acquire a majority stake in the latter’s super app spin-out.
Emirates Telecom – formerly Etisalat and now E&K – is trying to reinvent itself as a global technology investor with its Pass has the “capacity and the wallet” to do so, the group’s chief executive officer recently told JEE News. Last year, it became Vodafone’s largest investor.
After the development, Careem’s ride-hailing business will remain wholly owned by Uber and will continue to be available to customers on the existing app along with all other Careem services.
According to the details of the deal, e&Creem is investing $400 million to become the majority shareholder in the super app along with Uber – which acquired Cream in 2020 – and three of Cream’s co-founders.
Super apps offer users a range of services from food delivery to financial services on one platform. Careem’s Super app includes a dozen services, including food and grocery delivery, remittances and third-party services like laundry. The cream is available in 10 countries in the Middle East, North Africa and South Asia. Careem will use the new funds to expand its services across the region.
Careem started raising funds for his super app a year ago. But since then, technology firms have found it more difficult to attract investment as rising interest rates have marked the end of cheap money.
