Uber Acquires A Controlling Stake in Careem
“While e& will remain a meaningful shareholder and close strategic partner, this move brings Careem and Uber back into a closer, deeply familiar alignment,” Mudassir Sheikha, co-founder and CEO of Careem, said.
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Uber Technologies (Uber), the US-headquartered ride-hailing, delivery and mobility platform, has agreed to acquire an additional 12.5% stake in UAE-based delivery, payments and services platform Careem from UAE-based telecom giant e& for US$100 million in cash.
The transaction will reduce e&’s shareholding in Careem from 50.03% to 37.53% upon completion. The deal remains subject to regulatory approvals and customary closing conditions.
The agreement also includes reciprocal options that could allow Uber to acquire e&’s remaining stake in Careem. Under the arrangement, e& holds a put option requiring Uber to purchase its remaining shares, while Uber has a corresponding call option to acquire those shares. Both options can be exercised between December 1, 2031 and January 31, 2032.
“While e& will remain a meaningful shareholder and close strategic partner, this move brings Careem and Uber back into a closer, deeply familiar alignment,” Mudassir Sheikha, co-founder and CEO of Careem, wrote in a LinkedIn post announcing the move.
Shaikha also noted that Uber and Careem’s relationship dates back to 2019, when Uber acquired Careem’s ride-hailing business. “That structure enabled us to accelerate our growth, increasing top-line by almost 5X in the last couple of years. Along the way, we proved the Everything App concept that we first introduced in the region back in 2020,” he added.
The stake purchase comes as Careem continues to expand its presence across multiple service categories in the UAE. According to e&, Careem’s gross transaction value across its core services has increased nearly fivefold over the past two years, driven by growth in segments including food delivery, quick commerce, subscriptions and digital payments.
Uber acquired Careem’s ride-hailing business in 2019 and has since maintained a strategic relationship with the company as it expanded beyond transport into a broader range of consumer services.
Following completion of the transaction, e& said it will account for its remaining investment in Careem using the equity method under International Accounting Standard (IAS) 28.
Related: The 100: Mudassir Sheikha, CEO, Careem
Uber Technologies (Uber), the US-headquartered ride-hailing, delivery and mobility platform, has agreed to acquire an additional 12.5% stake in UAE-based delivery, payments and services platform Careem from UAE-based telecom giant e& for US$100 million in cash.
The transaction will reduce e&’s shareholding in Careem from 50.03% to 37.53% upon completion. The deal remains subject to regulatory approvals and customary closing conditions.
The agreement also includes reciprocal options that could allow Uber to acquire e&’s remaining stake in Careem. Under the arrangement, e& holds a put option requiring Uber to purchase its remaining shares, while Uber has a corresponding call option to acquire those shares. Both options can be exercised between December 1, 2031 and January 31, 2032.
Aalia Mehreen Ahmed • Senior Features Editor, Entrepreneur Middle East
Entrepreneur Staff
Aalia Mehreen Ahmed is the Senior Features Editor at Entrepreneur Middle East. She is an... Read more
