The new startup, Careem Super, will focus on providing ride-hailing and microtransportation services through innovative technology. The company is backed by Emirates Telecommunications Group Company, one of the world’s largest telecommunications companies. Careem Super plans to use its $400 million from Emirates to expand its service coverage throughout the Middle East and into other global markets.
E&, which has been a dominant player in the UAE telco market for years, said it plans to use Careem as a way to expand its presence in the global transportation industry. The telco giant said it will invest $1 billion over the next three years into the new company, which is estimated to have 500,000 drivers and riders available across 35 countries.
Mudassir Sheikha stated that Careem Technologies will focus on building AI-powered technologies for its ride-sharing app, while Careem Rides will continue to operate the company’s operations. The split is indicative of the fast growth careem has experienced in recent years – in 2018, the company’s revenue rose by more than 150%.
The aim of Super App is to become the dominate business, so they have created an interesting app unit that focuses on creating unique and innovative products. They believe that by focusing on this specific area, they will be able to create a more successful business overall.
The acquisition of Careem Rides signals Uber’s intention to expand beyond its core ride-hailing product. Whereas Uber has predominantly relied on bicycles and cars as transportation, Careem’s focus on providing quality rides at a lower price point could help the company reach new customers in urban and rural areas. Labroo is well-versed in bothride-hailing and logistics, which will be important as Uber tries to integrate Careem into its existing infrastructure while maintaining quality standards.
Sheikha is looking to create a global empire with the acquisition of Careem and its investments into other verticals such as Uber. The co-founders, Magnus Olsson and Sheikha, own a majority stake in the business which will have about 1,400 employees. This subsidiary of e& will compete with rival giants such as Uber and Lyft which have been challenging established travel companies for years now.
As a ride-hailing giant, Uber has gone head-to-head with numerous competitors, including Careem. Founded in 2012, Careem quickly established itself as a formidable competitor to Uber by adding food delivery and other services. In 2019, the company was acquired by its larger rival for $3.1 billion. As Lyft continues to face challenges of its own, it will be interesting to see how the battle between these two dominant players develops in the years to come.
The Super app is a ambitious new move by Careem and its newest investor, Saudi investment fund Khalfan al-Maeena, that shows the company’s founders and backers see huge potential in services that go beyond ride-hailing. combining all of the company’s existing products into one easily accessible platform, Super aims to give users more control and flexibility over their daily lives. WithKhalfan al-Maeena’s backing, Super is set to become a key player in the global market for online services catering to busy urbanites.
This $400 million infusion of capital will be used by Sheikha to accelerate the growth of her Super App and build category-leading verticals in all her key markets. This will include projects such as expanding the app’s reach to more languages, increasing the number of users and creating new innovative features that cater to users’ needs. The investment will also be used to bolster Sheikha’s marketing efforts, which are essential for driving user adoption and revenue growth.