UAE homegrown Careem is set to elevate its growth. Telecoms and technology company e&, formerly Etisalat, signed a binding agreement with Uber Technologies to acquire a 50.03% majority stake in Careem’s super app spinout in a deal valued at $400 million.

According to a filing by e&, the super app will be managed by Careem founders Mudassir Sheikha and Magnus Olsson. Careem’s ride-hailing services will remain fully owned by Uber, which continues to be a significant shareholder and will be available to all other services on the existing app. 

In a letter addressed to Careem employees, CEO and co-founder Mudassir Sheikha announced the latest news, calling it Careem’s Chapter 3. 

He wrote, “This investment will turbo-charge our Super App vision and restart our entrepreneurial journey to build the preeminent technology platform of our region. In Uber and e&, we now have two exceptional partners to help us get there.”

As part of the company’s new investment, Sheikha explained that there would be two organizational units: Careem Rides and Careem Technologies. The latter will operate the Careem Super App, which offers various services, such as food and grocery delivery, bike rentals, courier services, a digital wallet and fintech services, and additional third-party services, such as laundry, home cleaning, and car rental. Launched in April 2020, the Careem super app expanded the company’s offerings and has operations in more than 80 cities. 

Talking about the new partner, Sheikha said, “e& shares our passion for the region, for technology. It is safe to say that we could not have found a more aligned and resourceful partner than e& to join us on this journey.”

Meanwhile, Hatem Dowidar, Group CEO of e&, commended the partnership, saying, “We believe that together we’ll be able to enhance our impact across different markets in the region while pushing the boundaries of customer experience.”

The transaction cost will be financed from the existing cash balance, subject to regulatory approvals, customary closing conditions, and administrative procedures, e& said.