Emirates Telecommunications Group Company (e&) has made a strategic move by acquiring a majority stake in Careem‘s Super App business for $400 million. e& will be the majority investor in Careem’s Super App services, including food delivery, groceries, and payment solutions. Meanwhile, Uber remains the sole owner of Careem’s ride-hailing business.
The move is expected to help Careem accelerate its plans towards becoming an “everything app” in the Middle East and North Africa region. The Careem application currently offers a range of services, including food delivery, groceries, payment solutions, and third-party services such as home cleaning, laundry, and car rental. The acquisition is a strategic move for e&, as Super Apps have catalyzed the economic, social, and cultural growth of emerging markets.
The Importance of Super Apps
Super Apps have become popular due to the need to provide a unique and seamless customer experience. The mobile-first population has given rise to an ecosystem that has encouraged the use of and expanded the scope for Super Apps with user expectations turned towards performing their daily activities on digital platforms.
The Careem Super App is a digital native that has built a rapidly growing payment, food, and grocery delivery network and a platform for other digital businesses to scale from. The shared vision between e& and Careem will help enhance the company’s impact across different markets in the region while pushing the boundaries of customer experience.
One Click Checkout Feature
Last week, Careem launched a new feature, One Click Checkout, which allows Careem customers to use their pre-existing account details on Careem for easier checkout on third-party applications like 6thstreet.com. The feature is currently available for 6thStreet.com and will soon launch for other merchants in the region.
Growth Opportunities
According to Khalifa Al Shamsi CEO, e& Life,” There are several growth opportunities between Careem and e& Life, the consumer digital arm of e&. Their current strengths, primarily in fintech and multimedia, coupled with Careem’s services and regional footprint, will accelerate their joint vision towards a regional super app.”
Mudassir Sheikha, CEO, and co-founder of Careem, noted that the opportunity to use technology to leapfrog the lives of people in the region is enormous. With two strong partners in e& and Uber, he has no doubt that they will build the preeminent technology platform of the region.
The way I see it, the acquisition of Careem’s Super App business by e& is a significant development for the branding of both companies. It will accelerate the growth of Careem’s services and expand the scope of Super Apps in the region. With the addition of e& as a majority stakeholder, the Careem Super App is expected to become the preeminent technology platform in the region, delivering more services to millions of people. The shared vision between e& and Careem will help enhance the impact of both companies across different markets in the region while pushing the boundaries of customer experience, a key aspect of branding.
