UAE - Mubasher: Careem has acquired a minority stake in UAE-based digital car rental platform Swapp to expand flexible mobility options in the region, according to a press release.

The partnership offers on-demand and subscription car rentals with instant customer verification, one-hour delivery, real-time tracking, on-demand swaps, and a lease-to-own option.

Following the transaction, customers will be able to swap rentals or take advantage of a lease-to-own option, enhancing flexibility on the Swapp platform.

In 2022, Swapp joined the Careem Everything App as Careem Car Rental, enhancing the UAE mobility options.

Uzair Moosa, CEO at Swapp, commented: “Being embedded within the Careem app has enabled us to connect thousands of customers in the region to flexible car rental with unparalleled convenience and cost-savings.”

“Over the months ahead we’re excited to expand our regional presence and offer our customers new multi-month deals and even faster fulfillment,” Moosa added.

Adeeb Warsi, COO at Careem, said: “The opportunity for car rental services continues to rise as more and more people opt for flexible and affordable means of transportation.”

“Swapp’s supply of high-quality vehicles and smooth digital experience has delivered immense value to our customers’ lives and we’re excited to further expand our reach into this fast-growing segment,” the COO emphasized.

As per Statista, the UAE’s car rental market is expected to generate $175 million in revenue in 2025. Meanwhile, the compound annual growth rate (CAGR) is projected to reach 4.96% from 2025 to 2030.

Online sales are expected to drive most of this growth, accounting for about 87% of total revenue by 2030.