In a major corporate reshuffle shaking up the Middle East’s digital ecosystem, UAE telecommunications titan e& has signed a binding agreement to sell a 12.5% stake in Careem Technologies back to Uber Technologies for $100 million in cash.
The deal effectively hands operational and voting control of Careem’s “Super App” back to the American ride-hailing giant, reversing a landmark transaction from late 2023. Following completion, e&’s holding will drop from a majority 50.03% down to a 37.53% minority position.
Inside the Structural Rewind
The transaction alters the dual-governance model established in December 2023, when e& injected $400 million to purchase a majority stake in Careem’s non-ride services (food, groceries, fintech, and digital deliveries). Under the updated June 2026 agreement, the split moves back toward total integration:
- Ownership Shifts: e& sheds 12.5% of its holding. Uber, which has consistently retained 100% ownership of Careem’s core ride-hailing business since its original $3.1 billion buyout in 2019, will now command the Super App platform as well.
- The Long-Term Exit Window: The corporate realignment includes a reciprocal options framework. Between December 1, 2031, and January 31, 2032, e& holds a put option to require Uber to buy its remaining 37.53% stake. Reciprocally, Uber holds a call option allowing it to completely buy out e& during the same timeframe.
- Accounting Treatment: Upon closing, e& will shift its financial reporting of Careem Technologies to the equity method under IAS 28, moving it out of group consolidated reporting as a controlled subsidiary.
Strategy Behind the Moves
1. e& Enters “Discipline Mode” Following Q1 Expansion
In a formal statement to the Abu Dhabi Securities Exchange (ADX), e& clarified that the divestment mirrors an “increased strategic focus on its core businesses and disciplined capital allocation priorities.”
The cash-out occurs amid massive volume gains across e&’s foundational divisions. By the end of Q1, e&’s aggregate subscriber base skyrocketed 31% year-over-year to 248 million. Q1 revenues grew 15% to Dh19.4 billion ($5.28 billion) despite localized macroeconomic headwinds. While net profits attributable to shareholders fell 46% to Dh2.88 billion due to a one-time gain from an asset sale (Khazna) the prior year, normal operational net income actually rose by 3.9%.
2. Uber Unifies Its Gulf Footprint
For Uber, taking back control consolidates its regional portfolio. Over the last two years, Careem’s Gross Transaction Value (GTV) across core services expanded nearly fivefold in the UAE, scaling rapidly across verticals like Food, Quik, Plus, and Pay.
The move positions Careem to benefit directly from Uber’s global technology experience and platform synergies. Careem founder and CEO Mudassir Sheikha noted that while e& remains a major strategic partner, the move “brings Careem and Uber back into a closer, deeply familiar alignment.”
Building localized super-apps requires intense capital depth. By recalibrating this partnership, e& secures a $100 million liquidity injection and trims down non-core liabilities while keeping skin in the game. Meanwhile, Uber secures a unified ecosystem just as it scales up broader structural dominance over Gulf delivery networks.
