Uber to deliver e& $100M for Careem stake

Telecommunications group e& entered into a definitive agreement with Uber Technologies to divest a 12.5 per cent stake in digital services provider Careem Technologies for a total consideration of $100 million. The transaction reduces the shareholding of the United Arab Emirates-based operator in the platform to 37.5 per cent. This divestment follows a previous restructuring of the business which saw Careem split its operations between its core ride-hailing business and its diversified platform services, often referred to as a super-app.

Under the terms of the latest agreement, Uber retains an option to acquire the remaining 37.5 per cent stake currently held by e& at a future date. This potential acquisition would allow the ride-hailing firm to consolidate its ownership of the platform, which it originally acquired in its entirety before e& became a significant investor. The current deal reflects a valuation that aligns with the ongoing digital transformation strategies of both organisations as they navigate the competitive Middle Eastern technology landscape.

The partnership between e& and Uber began in earnest during the previous year when the operator invested $400 million to gain a controlling stake in the non-transportation side of Careem. That investment was intended to accelerate the growth of the Careem Super App, which facilitates various services including food delivery, digital payments, and courier logistics. By divesting a portion of this stake now, e& is adjusting its capital allocation while maintaining a substantial interest in the platform's performance and regional reach.

The technology company Careem serves a broad customer base across several markets in the Middle East, North Africa, and South Asia. While the ride-hailing unit remained a wholly-owned subsidiary of Uber throughout these structural changes, the super-app vertical has benefited from the investment and operational support provided by e&. The operator has consistently targeted a strategy of diversifying its revenue streams away from traditional telecommunications towards broader digital and financial services.

Following the completion of this stake sale, both companies are expected to continue their cooperation regarding the technical development and regional scaling of the platform. The deal remains subject to various regulatory approvals and customary closing conditions in the jurisdictions where Careem operates. Analysts suggest the move provides e& with immediate liquidity while ensuring it remains positioned to benefit from the digital ecosystem it helped build alongside Uber.

The transaction highlights the shifting dynamics in the regional technology sector where major operators frequently collaborate with global platforms to integrate mobile connectivity with consumer services. Over the coming months, e& and Uber will likely focus on the integration of these services to improve user retention and expand the service portfolio for the regional customer base. This move is expected to strengthen the financial position of e& as it evaluates further investment opportunities in emerging digital markets across its international footprint.