UAE telecommunications group e& has agreed to sell part of its stake in Careem Technologies to Uber Technologies for $100 million in cash, deepening Uber’s ownership in the Middle East technology platform while allowing e& to retain a significant minority position.
The transaction, announced in a filing to the Abu Dhabi Securities Exchange, involves the sale of 12.5% of e&’s 50.03% stake in Careem Technologies. Upon completion, e&’s ownership will decline to 37.53%, while Uber will increase its economic interest in the company.
The deal remains subject to regulatory approvals and customary closing conditions.
Uber Expands Position in Careem
The transaction marks another step in the evolving ownership structure of Careem, one of the region’s leading multi-service digital platforms.
Based on the disclosed ownership figures, the stake being transferred represents approximately 6.25% of Careem itself. The $100 million consideration implies an overall equity valuation of roughly $1.6 billion for the company, providing investors with a fresh benchmark for the business following a period of rapid expansion.
Completion of the deal will leave e& with a substantial minority holding valued at approximately $600 million based on the implied valuation.
“While e& will remain a meaningful shareholder and close strategic partner, this move brings Careem and Uber back into a closer, deeply familiar alignment,” said Careem founder and chief executive Mudassir Sheikha.
Future Ownership Options Agreed
As part of the agreement, e& and Uber have established reciprocal options covering e&’s remaining stake in Careem.
Under the arrangement, e& will hold a put option allowing it to require Uber to purchase its remaining shares, while Uber will hold a corresponding call option allowing it to require e& to sell. Both options can be exercised between December 1, 2031, and January 31, 2032.
The filing did not disclose any pricing formula or valuation mechanism for the future transaction window.
The structure allows Uber to increase its ownership over time while enabling e& to maintain exposure to Careem’s growth and participate in any future value creation.
Careem’s Growth Supports Transaction
The sale comes after a period of strong operational performance for Careem Technologies.
According to e&, Careem has accelerated revenue growth and expanded market share in the UAE over the past two years. Gross transaction value (GTV) in its core services increased almost fivefold during the period, driven by growth across segments including Food, Quik, Plus, and Pay.
“Over the last two years, Careem technologies accelerated revenue growth and gained market share in the UAE. GTV in core services grew almost 5x as momentum surged across several segments such as Food, Quik, Plus, and Pay. This progress reinforces Careem’s position as a high-growth leading lifestyle multi-vertical platform.”
The company’s expansion reflects growing activity across transportation, food delivery, quick commerce, subscription services, and digital payments, strengthening its position as a regional consumer technology platform.
Careem currently operates in more than 70 cities across 10 countries.
Strategic Shift for e&
e& said the partial divestment aligns with its broader strategy of focusing on core operations while maintaining exposure to high-growth digital assets.
“Our partial stake sale to Uber will allow Careem Technologies to benefit from Uber’s global technology experience and platform synergies, and position itself for the next phase of growth,” e& said.
“This also reflects e&’s increased strategic focus on its core businesses and disciplined capital allocation priorities, while maintaining exposure to Careem Technologies and remaining aligned with its future growth trajectory.”
The telecom group emphasized that it will remain actively involved in supporting Careem’s long-term development.
“We will continue to work closely with management and fellow shareholders to support and promote the Company as a high-potential growth platform with attractive long-term prospects.”
Accounting Treatment to Change
Following completion of the transaction, e& said it will change the accounting treatment of Careem Technologies and apply the equity method under International Accounting Standard (IAS) 28.
The shift reflects e&’s lower ownership level and means Careem will no longer be reported in the same manner as a controlled subsidiary. Future reporting will focus on e&’s share of Careem’s profits rather than consolidating the business within group results.
“Upon completion of the transaction, e& will amend the accounting treatment of Careem technologies to the equity method under IAS 28.”
Careem Ownership evolves
e& acquired a majority stake in Careem Technologies for $400 million from Uber in December 2023 after the company’s non-ride-hailing businesses were carved out into a separate entity.
Uber had previously acquired Careem’s ride-hailing business in a $3.1 billion transaction completed in 2019.
The latest deal strengthens Uber’s position in the platform while allowing e& to retain a significant role in a business that continues to expand across multiple consumer service categories in the UAE and wider region.
The company said it will provide further market updates should any material developments arise. No closing date or details of the regulatory review process were disclosed.