UAE technology group e& has agreed to sell a 12.5% stake in Careem Technologies to Uber for $100 million, reducing its ownership while retaining a significant position in the company.

Following completion of the transaction, e&’s stake in Careem Technologies will decline to 37.53% from 50.03%, the company said in a filing to the Abu Dhabi Securities Exchange on Monday.

The deal marks the latest chapter in the evolution of Careem Technologies, which was established in 2023 following the separation of Careem’s non-ride-hailing businesses from its ride-sharing operations.

Uber, which acquired Careem for $3.1 billion in 2019, retained full ownership of the ride-hailing business, while e& acquired a majority stake in the newly formed Careem Technologies for $400 million in December 2023.

“While e& will remain a meaningful shareholder and close strategic partner, this move brings Careem and Uber back into a closer, deeply familiar alignment,” said Careem founder and chief executive Mudassir Sheikha.

e& said the transaction will enable Careem Technologies to benefit from Uber’s global technology expertise, product capabilities, and platform synergies as it enters its next phase of growth.

“Our partial stake sale to Uber will allow Careem Technologies to benefit from Uber’s global technology experience and platform synergies, and position itself for the next phase of growth,” the company said.

The company added that the sale reflects its increasing focus on core operations and disciplined capital allocation while preserving exposure to Careem Technologies’ future growth potential.

Over the past several years, Careem has evolved beyond ride-hailing into a broader technology platform offering services such as food and grocery delivery, as well as digital payments. The company operates in more than 70 cities across 10 countries.

As part of the agreement, e& has secured a put option that gives it the right to require Uber to purchase its remaining shares in Careem Technologies. Uber holds a reciprocal call option that would allow it to require e& to sell its remaining stake. Both options can be exercised between December 1, 2031, and January 31, 2032.

The transaction comes as e& continues to strengthen its position as a regional technology and digital services group. Formerly known as Etisalat Group, the company reported an aggregate subscriber base of 248 million at the end of the first quarter, representing annual growth of nearly 31%.

First-quarter revenue rose approximately 15% year-on-year to $5.28 billion, despite the impact of geopolitical tensions on business activity during March, the company said.

Net profit attributable to shareholders declined more than 46% to $784 million, largely due to a one-off gain from the sale of Khazna recorded in the corresponding period a year earlier. Excluding that impact, net profit increased 3.9%.

e& said it will continue to work closely with Careem’s management and shareholders to support the company’s long-term growth and further develop the platform’s potential across the region.