On Monday, the ride-hailing business Careem, which is owned by Uber, announced a spinoff with significant support from both its parent company and a new source.

With a $400 million investment, the Abu Dhabi-based tech holding company e&, formerly known as Etisalat, entered into a legally binding agreement with Uber Technologies to purchase a 50.03% controlling ownership in the spinoff, which will be called as Careem Technologies.

Uber, which purchased Careem’s ride-hailing company for $3.1 billion in 2019, continues to be the sole owner of it. Uber’s current ownership percentage in the spinoff is unknown.

Careem Technologies will concentrate on the expansion of the business’s “super app,” which provides numerous services in addition to taxi hailing in a single app. Careem Quik offers a variety of services, such as grocery delivery in 15 minutes or less, meal delivery, ordering PCR tests, digital payments and remittance transfers, renting bicycles, ordering laundry and cleaning, and purchasing event tickets.

“e& is investing $400m to become a majority shareholder in Careem’s Super App alongside Uber and all three of Careem’s co-founders,” a statement from e& said.

According to the company, the funding will greatly speed up Careem’s effort to develop “the first ‘everything app’ for customers throughout the Middle East.”

Careem, situated in Dubai, “expects significant synergies with e& and anticipates benefiting from e&’s large customer base,” the statement continued, as well as e&’s expertise in developing tech firms across a shared geographic region.

According to its website, Careem operates in more than 80 locations and 10 countries. Founded in 2012 by co-founder and CEO Mudassir Sheikha in Dubai, the business expanded from a ride-sharing service to a “Super App” platform that is utilized all throughout the Middle East, from Morocco to Pakistan.

(Adapted from CNBC.com)