e& sells Careem stake to Uber and opens up a path for Uber to fully own Careem again

Uber could end up owning all of Careem again. Telco e& inked an agreement to sell a 12.5% stake in Careem Technologies — Careem’s super-app unit — for USD 100 mn to Uber, in a transaction that comes with future buy-sell options attached, opening the door for Uber to eventually become the sole owner of the entirety of Careem’s operations, according to a press release (pdf).

BACKGROUND- Careem’s ride-hailing business has remained fully owned by Uber since its USD 3.1 bn acquisition in 2019. In 2023, the company spun out its broader super-app operations into Careem Technologies and sold a 50.03% stake to e& for USD 400 mn.

How it would work: The transaction cuts e&’s stake in Careem Technologies to 37.53%, down from 50.03%. Under the agreement, e& holds a put option allowing it to require Uber to buy its remaining stake, while Uber has a matching call option that would let it force a sale. Both options become exercisable between December 2031 and January 2032.

This is a neat exit ramp for e& — and a strategic option to give Uber full control of its once-Middle East-rival. Reuniting the super app with the ride-hailing business it already owns would give it a fully integrated platform across one of its most important emerging-market corridors — and remove the operational complexity of running the two sides of Careem under split ownership.

The move also comes as Uber looks to take over another industry rival, Germany’s Delivery Hero, after tabling a USD 38.29-per share proposal last month. It’s also been raising its stake in the firm, acquiring an additional stake that gave it a 37% position ahead of the takeover bid.