Powerhouse Collaboration: Careem, Uber's Subsidiary, Launches $400M Spinout with UAE's Emirates Telecom

Emirates Telecommunications Group proposes to snap a $400 million stake in Uber Technologies Inc’s UBER Middle Eastern subsidiary-developed super app Careem.
The Abu Dhabi-based telco firm, also Vodafone Group Plc’s VOD biggest investor, inked a binding agreement with Uber and its regional subsidiary, Careem, to acquire a 50.03% stake in the super app spin-out, Bloomberg reports.
Uber, which acquired Careem in 2020, will remain a shareholder in the new entity and continue owning all of Careem’s ride-hailing business. All three of Careem’s co-founders will also be shareholders in the super app.
Careem will use the new funds to expand its services across the region.
Careem’s super app includes a dozen services, including food and grocery delivery, remittances, and third-party services. Careem is available in 10 countries across the Middle East, North Africa, and South Asia.
Careem started raising funds for its super app over a year ago. However, technology firms struggled to attract investment after rising interest rates ended cheap money.
Price Action: UBER shares traded lower by 0.80% at $30.93 on the last check Monday.