E& has agreed to invest USD 400 million in Careem's Super App spinout, becoming the majority shareholder alongside Uber and all three of Careem's co-founders. The Careem Super App is a multiservice app offering over a dozen services, including food and grocery delivery, micro-mobility, a digital wallet, a suite of fintech services, and additional third-party services such as home cleaning, car rental, and laundry. Careem serves customers in 10 countries across the Middle East, North Africa, and South Asia.
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First 'Everything App'
According to the statement, This investment will enable Careem to accelerate its vision to create the first "everything app" serving customers across the Middle East. Careem plans to expand its core food, grocery, and fintech services and the Careem Plus subscription program across the region while adding even more partner services to the app.
e& said, "Super Apps have catalyzed the economic, social and cultural growth of emerging markets today. The Careem Super App, is a digital native that has built a rapidly growing payments, food and grocery delivery network, and a platform for other digital businesses to scale from. The shared vision between e& and Careem is exciting, 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."
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The deal aligns with e &'s strategy of scaling up consumer digital offerings and transforming into a global technology and investments group. It provides e& with access to multiple digital verticals, new innovative digital services, strong talent, and new geographies.
e& will leverage the Careem Super App to boost the growth of its consumer digital services, including the expansion of e& life's fintech vertical, e& money, which will play an important role in the super app vision by providing e& money's powerful financial service offerings.
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Uber's acquisition of Careem in 2020
Since Uber's acquisition of Careem in 2020, Careem has evolved to become a multiservice app offering users over a dozen services. In 2022 in the UAE, Quik, the grocery delivery service, grew 46 times, and food orders grew by 86 percent. Over the course of the year, Careem Pay launched as a true fintech in the UAE with a digital wallet and payments products, including bill payments, international remittances, domestic peer-to-peer payments, and one-click checkout.
Careem Bike doubled its network of pedal-assist bikes and grew by 61 percent. In addition, Careem launched its popular subscription service Careem Plus, saw its first partner service (home cleaning) grow 4.9 times while it also onboarded new third-party partners offering rental cars, spa, and laundry services.
The deal is subject to regulatory approvals, customary closing conditions, and administrative procedures.