UAE-based telecom company e& has sold its 12.5% ownership in Careem to Uber as part of a transaction valued at around $100 million, marking a notable shift in its investment portfolio.
UAE telecom firm e& has divested a 12.5% share in Careem to Uber in a deal worth $100 million.
Emirates Telecommunications Group Company PJSC, widely known as e&, has announced a partial divestment of its holdings in Careem Technologies through the sale of a 12.5 per cent stake to Uber Technologies. The transaction, which is valued at approximately $100 million (equivalent to around Dh367 million), marks a significant development in the ownership structure of the ride-hailing and technology platform.
Before this deal was completed, e& held a majority position in Careem Technologies with a 50.03 per cent share. Following the completion of the stake sale to Uber, its ownership has now been reduced to 37.53 per cent, although it continues to remain a major shareholder in the company. This adjustment reflects a partial exit rather than a full withdrawal from its investment in Careem, allowing the telecom group to retain meaningful influence and exposure to the company’s future growth.
The decision to sell part of its stake comes as e& continues to refine its broader corporate strategy. According to the company, the transaction is aligned with its ongoing efforts to focus more closely on its core telecommunications and digital services operations. By reallocating resources and optimizing its investment portfolio, the group aims to strengthen its primary business segments while still maintaining strategic interests in selected high-growth ventures such as Careem Technologies.
In its official statement released on the Abu Dhabi Securities Exchange, where e& is publicly listed, the company explained that the partial sale is part of a more disciplined approach to capital allocation. This strategy is intended to ensure that investments are continually evaluated in terms of long-term value creation, operational synergy, and alignment with the group’s evolving priorities.
At the same time, e& highlighted that the transaction is not a complete withdrawal from Careem Technologies. Instead, the company emphasized that it will continue to hold a substantial minority stake, which allows it to remain connected to Careem’s future development and expansion plans. This continued involvement ensures that e& still benefits from the company’s potential upside while freeing up capital for other strategic initiatives.
The group also pointed out that bringing Uber Technologies further into Careem’s ownership structure is expected to generate additional advantages for the platform. Uber’s global presence, extensive operational experience in mobility services, and advanced technological capabilities are likely to enhance Careem’s ability to scale and innovate. Through this collaboration, Careem Technologies may be able to leverage Uber’s established systems, data-driven tools, and international expertise to strengthen its competitive position in the region.
From a strategic perspective, e& views this partnership as an opportunity for Careem Technologies to enter its next phase of growth. By combining local market understanding with global industry experience, the company is expected to benefit from improved operational efficiency and expanded technological integration. This could potentially accelerate product development and service enhancement across its platform.
The announcement also reflects a broader trend within e& toward reshaping its investment structure. Over recent years, the group has been gradually transitioning from a traditional telecom operator into a more diversified technology and investment-driven organization. As part of this transformation, it has been actively reviewing its portfolio to identify assets that align closely with its long-term strategic vision.
Despite the partial divestment, e& has reiterated that its commitment to Careem Technologies remains strong. The reduction in stake is not seen as a signal of reduced confidence in the company’s prospects, but rather as a balanced decision aimed at optimizing financial returns while maintaining strategic alignment.
Overall, the transaction represents a carefully structured move that serves multiple objectives: it unlocks liquidity for e&, strengthens Uber’s involvement in Careem Technologies, and supports the platform’s future growth ambitions. At the same time, it allows e& to stay engaged with one of the region’s leading digital platforms while continuing to focus on its core telecommunications and digital transformation agenda.
In addition to the stake sale, the agreement between e& and Uber includes a set of structured future exit mechanisms designed to give both parties flexibility regarding their remaining ownership in Careem Technologies. Under these terms, e& holds a put option, which grants it the right—though not the obligation—to require Uber to purchase its remaining shares in the company at a later stage. This provides e& with a potential pathway to fully or partially exit its investment in the future, depending on how the business evolves and market conditions develop.
On the other hand, Uber has been granted a corresponding call option. This gives Uber the right to compel e& to sell its remaining stake in Careem Technologies if it chooses to do so within the agreed timeframe. Together, these reciprocal arrangements create a balanced framework that allows both companies to plan for long-term ownership changes in a structured and mutually agreed manner.
These contractual options are not open-ended and are subject to a defined exercise window. They can only be activated during a specific period beginning on December 1, 2031 and concluding on January 31, 2032. Outside of this time frame, neither party can enforce these rights, which ensures that the options are aligned with a long-term horizon and are likely intended to coincide with Careem Technologies’ anticipated growth trajectory over the coming years.
Commenting on the partnership and its future direction, e& stated that it intends to maintain a close working relationship with Careem Technologies’ leadership team as well as other shareholders. The company expressed its commitment to supporting the platform’s ongoing development and strengthening its position as a high-growth business with strong long-term potential. According to e&, the collaboration is aimed at nurturing Careem’s expansion and ensuring it continues to evolve as a leading digital services provider in the region.
Over the past two years, Careem Technologies has demonstrated notable progress in terms of financial performance and market expansion. The company has recorded a significant acceleration in revenue growth, alongside an increase in its market share within the United Arab Emirates. This upward trend reflects stronger demand for its services and successful execution across its various business lines.
A key indicator of this growth has been the sharp rise in Careem’s Gross Transaction Value (GTV), particularly within its core service offerings. The overall GTV has increased nearly fivefold, highlighting the rapid scaling of its platform and the expanding volume of transactions processed through its ecosystem.
This growth has been driven by strong performance across multiple segments of its business. Services such as Food delivery, Quick commerce (Quik), subscription-based offerings like Careem Plus, and digital payments through Careem Pay have all contributed significantly to this expansion. Each of these verticals has experienced rising user engagement and increased adoption, helping the company build momentum across its integrated platform.
The combined effect of these developments illustrates Careem Technologies’ transition into a more diversified digital ecosystem, rather than a single-service platform. With multiple revenue streams gaining traction simultaneously, the company has been able to strengthen its competitive position and deepen its presence in the regional technology landscape.
Overall, the agreement structure between e& and Uber, along with Careem’s strong operational performance, reflects a broader narrative of strategic investment, long-term planning, and sustained growth potential within the digital mobility and services sector.
