UAE operator e& struck a deal with Uber to sell 12.5% of its stake in digital platform provider Careem Technologies for $100 million, leaving it with a 37.5% shareholding which the taxi app giant has an option to acquire the rest of.

Careem Technologies builds and operates its namesake app and related services. The app is used for various consumer services including food and grocery delivery, payment and other lifestyle services.   

The deal is subject to regulatory approval and includes options which can be exercised by either side for Uber to buy e& out of Careem completely. The options can be activated between December 2031 or January 2032.

In a stock market statement, e& noted from the deal Careem would benefit from Uber’s experience and synergies with its global platforms.

For e& the sale reflects an “increased strategic focus on its core businesses and disciplined capital allocation priorities”, while allowing it to maintaining some exposure to the app business.

Uber already owns the other 50% of Careem Technologies and the entirety of the ride sharing business it was originally spun-off from.

Careem Technologies was separated from the taxi business in 2023, with e& taking a 50.03 per cent stake in that business in exchange for an investment of $400 million in it.

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