Emirates Telecommunications Group (e&), a telco based in the United Arab Emirates (UAE), has acquired a 50.3% stake in Uber’s Middle East unit Careem for US$400 million, according to a statement by the former.
The deal will be financed by e&’s existing cash balance and is subject to regulatory approvals, customary closing conditions, and administrative procedures.
In 2020, Uber acquired Careem, its Dubai-based rival, for US$3.1 billion. In the same year, Uber closed its Uber Eats operations in the Middle East and transferred it to Careem.
The UAE-based firm offers a range of services beyond ride-hailing, including food delivery, bike rentals, digital payments, and courier services. It serves customers in 10 countries across the Middle East, North Africa, and South Asia.
The investment is expected to help Careem expand its core food, grocery, and fintech services. It also aims to boost the Careem Plus subscription program across the region while adding more partner services to the app.
Careem expects “significant” synergies with e& and it looks to leverage the telco’s customer base of 163 million across 16 countries.