Dubai has been the starting point for many ambitious businesses, but Careem’s story stands out. Founded in the emirate in 2012 with a simple idea to make transportation easier, the company went on to establish a presence in more than 70 cities across over 10 countries. By 2022, its services had reached more than 50 million users, making it one of the region’s best-known technology success stories.<\/p>\n
Behind that growth was an idea that met the right opportunities. Dubai offered Careem a business environment where it could develop its services, attract investment, recruit talent and reach new markets. Over the years, the company became an example of how a startup founded in the emirate could grow into a business recognized far beyond the UAE.<\/p>\n
When Careem was established in Dubai in 2012, the emirate provided much of what a young company needed to get started. Setting up a business was straightforward, investors and international talent were accessible, and the regulatory environment encouraged innovation and the development of digital services.<\/p>\n
These advantages gave Careem room to grow. What began as a transportation booking service gradually developed into a technology business with operations across several countries, reaching more than 70 cities as demand for its services increased.<\/p>\n
Careem’s progress also reflected Dubai’s growing importance as a regional center for technology and entrepreneurship. The company’s ability to expand beyond its home market showed how businesses founded in the emirate could compete internationally and attract major investment.<\/p>\n
The idea behind Careem actually dates back to 2008, four years before the company was launched. That was when Magnus Olsson, a Swedish entrepreneur, met Pakistani entrepreneur Mudassir Sheikha while they were working at McKinsey in Dubai.<\/p>\n
Both were looking to do something meaningful beyond their existing careers, although their motivations came from different personal experiences.<\/p>\n
Olsson had recovered from a serious illness, an experience that made him think about how he wanted to use the opportunity life had given him. He hoped to build something that would make a difference.<\/p>\n
Sheikha, who had studied and begun his career in Dubai, felt a strong sense of gratitude toward the UAE. He wanted to give something back to the country by creating a business that would benefit the community and provide employment opportunities.<\/p>\n
As they discussed possible ideas, they kept returning to a familiar problem: finding transportation was not always easy, particularly when traveling between emirates or visiting cities where they did not know the streets or their destinations.<\/p>\n
They saw an opportunity to make those journeys simpler. A service that allowed people to book a vehicle and arrange their travel in advance could address a problem they had experienced themselves.<\/p>\n
The two also wanted the company to reflect their values. They settled on the name Careem, an Arabic word associated with generosity, kindness and giving, qualities they hoped would become part of the way the business operated.<\/p>\n
After four years of preparation, Careem launched in Dubai on the first day of Ramadan in 2012. There was no sophisticated mobile application at the beginning. Instead, customers used a basic website to arrange transportation by providing their location and the time they needed a vehicle.<\/p>\n
Bookings were handled through email and telephone calls. Once a reservation was made, the customer received a text message confirming that the driver was on the way. Meanwhile, the Careem team contacted drivers individually by phone, passing along pickup locations and directions.<\/p>\n
It was a straightforward operation, built around making an everyday task easier for customers.<\/p>\n
A few months later, the company opened its first office. The space had simple furniture and limited resources, but it was there that Careem began interviewing its first employees and building the team needed to support its growing operations.<\/p>\n
The following year brought a major development. In 2013, Careem launched its mobile application and expanded into other cities in the region, including Riyadh and Doha. Saudi entrepreneur Abdullah Elyas also joined Olsson and Sheikha that year, becoming the company’s third co-founder.<\/p>\n
As the business grew, its founders looked beyond transportation. In 2018, Careem introduced food delivery, followed by shopping services that allowed customers to order purchases and have them delivered to their homes.<\/p>\n
Its range of services also came to include parcel delivery, bill payments and an electronic wallet, giving customers more ways to manage everyday needs through the platform.<\/p>\n
In 2019, Careem expanded its transportation offerings by introducing bicycle rental services, providing another option for getting around as cities faced increasing traffic challenges. The company also created opportunities for women to work in delivery services.<\/p>\n
Careem reached an important milestone in 2016 when its valuation hit $1 billion. That achievement placed the Dubai-founded business among the region’s unicorn companies, a term used for startups valued at $1 billion or more.<\/p>\n
Three years later, the company became part of one of the Middle East’s biggest technology deals.<\/p>\n
In 2019, Uber announced that it would acquire Careem for $3.1 billion. The transaction, completed in early 2020, marked a significant moment for the company and for the startup sector in Dubai.<\/p>\n
Despite the acquisition, Careem retained its own name and continued operating under its established brand, with its own management and services.<\/p>\n
The deal brought international attention to a business that had started with a relatively simple booking system in Dubai. It also demonstrated the potential of the emirate’s entrepreneurial environment to support companies capable of reaching billion-dollar valuations and attracting some of the world’s largest technology businesses.<\/p>\n
Careem continued to expand its services and customer base in the years following the acquisition. By 2022, more than 50 million people were using its platform, while its operations had provided over 2.5 million work and income-earning opportunities across transportation, delivery and other services.<\/p>\n
Those opportunities extended to drivers, delivery workers and people working in the company’s technical operations. At the same time, customers gained access to a wider range of services designed to make transportation, shopping and other daily activities easier.<\/p>\n
The company’s development also attracted further investment.<\/p>\n
In 2023, Etisalat Group acquired a 50.03% stake in the Careem Super App for $400 million, marking another major investment in the Dubai-founded platform.<\/p>\n
A further ownership change followed in July 2026, when the group sold a 12.5% stake to Uber for $100 million, reducing its holding to 37.53%.<\/p>\n","protected":false},"excerpt":{"rendered":"
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