Careem, a Middle Eastern company that specializes in providing car rental services, is transforming its super app business into a new startup.
Source: motionarray.com
This company was acquired by Uber in 2019. The time has come for a new stage in the history of the firm. The transformation of the business was supported by Emirates Telecommunications Group, which provided $400 million in investment funds for the structural rebirth of the firm.
Emirates Telecommunications is the telecommunications giant of the UAE, which is now known as E&. Last Monday, April 10, the company announced that it had reached an agreement with Uber to purchase 50.03% of the shares of the new company Careem Technologies.
The message, which was published on the blog of Careem CEO and co-founder Mudassir Sheikha, says that after the deal is concluded, Careem will be divided into two companies, among which Careem Rides and Careem Technologies.
The main goal of the processes for the qualitative transformation of the business structure of a car rental company is to make the Super App division dominant.
Careem Rides will be owned by Uber on the principle of sole ownership. The number of employees of this company will be 260 people. This firm will focus on the main product for travel arrangements. Ashish Labru will lead Careem Rides.
Careem Technologies will manage the super-app along with all other verticals. This business will be jointly owned by e&, Uber, and the co-founders of Careem, which include Sheikha and Magnus Olsson. The number of employees of this company will be about 1400 people.
Careem was founded in 2012. Initially, the company positioned itself as a competitor to Uber. The competition eventually ended in a takeover, which is a common phenomenon in the business sphere. Uber acquired Careem for $3.1 billion. Currently, the Middle Eastern company provides services not only for car rental but also for the delivery of food and parcels. The list of the firm’s activities also includes credit transfers and bus services.
Careem has made several acquisitions, such as RoundMenu and Commut, as it has diversified its business. The transformation of the company indicates that its founders and a new investor see potential in services that relate not only to car rental. The Super app combines all Careem products, including food delivery, bicycle rental, and financial services that allow you to send and receive payments.
Sheikha said that the $400 million investment will be aimed at scaling the application and creating verticals in all key markets.
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