Uber purchased Careem in 2019 and is spinning its super app business into a separate firm financed by $400 million from Emirates Telecommunications Group Company.
Emirates Telecommunications renamed e&, agreed to purchase a 50.03% share in Careem Technologies from Uber on Monday.
According to a blog post by Careem CEO and co-founder Mudassir Sheikha, the purchase would split Careem into Rides and Technology. Super App’s goal is to dominate.
Careem Rides, owned by Uber, will employ 260 employees and focus on ride-hailing. Ashish Labroo will lead Careem Rides.
Sheikha said Careem Technologies would run the “Super App” and all verticals. e&, Uber, and Careem co-founders Sheikha and Magnus Olsson will control this firm. Sheikha will lead this 1,400-person unit.
Careem, an Uber competitor started in 2012, now offers food and package delivery, transportation services, and credit transfers. Careem diversified by buying RoundMenu and Commut. Uber bought Careem for $3.1 billion in 2019.
This latest move demonstrates Careem’s founders and newest investor see the biggest promise in services outside ride-hailing. The Careem Super app, accessible in 10 countries, integrates food delivery, bike rentals, banking services that allow users to make and receive money, and third-party services like cleaning.
Sheikha said the $400 million in additional capital will “scale the Super App and establish category-leading verticals in all our core markets.”