Thank you to Emirates Telecommunications Group Company PJSC, or e&, an Arabic telecommunications company, Uber was able to purchase a partial stake in Careem for $100 million. In case you missed it, here’s the story.
During the start of June this year, the telco company in United Arab Emirates, mediated and agreed to sell a 12.5 percent stake from Careem Technologies to Uber for that price, reducing the ownership of Careem, giving a share to Uber, but the former retains a significant position in the company.
The Emirates Telecommunications Group Company PJSC, or e& – not EY or Ernst & Young, okay! – is an Emirati multi-national telecommunications and technology conglomeration in the area.
Founded in the late 1970s and based in Abu Dhabi, where you can find the Sheikh Zayed Grand Mosque and the Emirates Palace Mandarin Oriental – moms and dads, listen up – this big telecommunications operator in the Middle Eastern country has depreciated its stake in Careem to only 38 percent from around 50 percent, a thing that the Abu Dhabi Securities Exchange would second.
“While e& will remain a meaningful shareholder and close strategic partner, this move brings Careem and Uber back into a closer, deeply familiar alignment,” stated the Careem founder and the CEO, Mudassir Sheikha.
This landmark deal is the freshest chapter in the evolution of the Careem business landscape, which, to educate you, was established in 2023, following the separation of the non-ridesharing businesses of Careem from its operations.
This time that Uber is partial stakeholder, Uber can push forward its technological expertise, product capabilities, and platform synergies as it gets into the next stage of the 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 stage of growth,” Uber told the RSF team.
Uber acquired Careem for a whopping $3.1 billion in 2019, retaining complete ownership of the business, while the telecommunications company acquired a big stake in the re-hashed Careem for more than $300 million in December 2023. For more ridesharing and food delivery stories, keep it locked right here on RSF talks! Join, and take part in the discussions tonight! Invite here your friends and family!