Uber is spinning out part of its Careem brand, with UAE company e& investing $400 million for a majority stake in the spinout.
Uber bought the Careem ride-hailing service for $3.1 billion in 2019. Uber will retain ownership of Careem but is spinning out other parts of the business beyond ride-hailing. The new company, Careem Technologies, will focus on the company’s “super app,” built around dozens of other services, according to CNBC.
“The non-ride services that are Careem-owned and operated today will be owned and operated by Careem Technologies in the future,” a spokesperson for Careem told CNBC.
e&’s $400 million investment will give the UAE company a 50.03% stake in Careem Technologies,
When asked why Uber was spinning off Careem Technologies, the company spokesperson said it had to do with restrictions regarding how publicly traded companies handle new investments.
“It wasn’t necessarily that we felt a spinout was required in any way, and I think Uber’s continued ownership stake in the spinout is a testament to their continued belief in the Super App vision and desire to be part of this journey,” he said. “But ultimately, I think, with Uber being a publicly listed company, there are only so many ways you can take new investment from a new party.”
“I am thrilled to partner with Careem, and welcome e&, as we grow the Careem super app to deliver more services to millions of people in this fast-moving part of the world,” Uber CEO Dara Khosrowshahi said in a statement.
