Uber Sells Southeast Asian Operations to Rival Grab

Uber has agreed to sell its Southeast Asia business to rival Grab		
		
	Jon Russell

       @	   
   	7 hours

Uber has agreed to sell its Southeast Asia business to rival Grab Jon Russell @ 7 hours

There's been a lot of talk recently about Uber selling their Southeast Asian business to local ride hailing service Grab.

Grab now is the biggest ride-hailing firm in Southeast Asia.

As Uber prepares for its Initial Public Offering (IPO), CEO Khosrowshahi has been trying to clean up the company's financials.

Khosrowshahi said this was "a testament to Uber's exceptional growth across South East Asia over the last five years".

Under the new deal, Uber will have a 27.5 percent stake in the Singapore-based Grab and Uber's CEO, Dara Khosrowshahi will become a member of Grab's board. In short, this means that Uber users and drivers in Malaysia will be migrated over to Grab and GrabFood will take over from Uber Eats after the Uber app shuts down on 8 April 2018 while the Uber Eats app shuts down in May.

The sale is Uber's latest withdrawal from a market where it had faced tough competition, as new chief executive DaraKhosrowshahi seeks to stem huge losses and move past a series of scandals.

In China, too, Uber sold off its local business to a competitor and partner, Didi Chuxing, taking a stake in Didi.

Grab will purchase Uber's ride-hailing and food delivery operations in the region in a deal valued at several billion dollars, according to a person familiar with the acquisition who spoke on the condition of anonymity because they were not authorized to speak publicly. Financial details were not disclosed.

More jobs, less waiting time, and an "ultimately higher earning potential" are expected to be felt by Grab's partner-drivers as more passengers are expected to use their platform, Cu said.

Anthony Tan, Grab group CEO and co-founder, said, "Together with Uber, we are now in an even better position to fulfill our promise to outserve our customers".

Grab says it operates in 191 cities in the region - about three times as many as Uber - and also offers motorbike, carpooling and cashless payment services.

For Softbank, the deal will help it "double down" on its plans for growth and invest in products and technology. With the combined business, Grab is aiming to be the leading online-to-offline (O2O) mobile platform in Southeast Asia, as well as a major player in food delivery. Uber meanwhile continues exiting markets, including the aforementioned China and also Russian Federation. These got stronger after SoftBank - an investor in Ola - joined Uber as an investor committing over $1 billion in the US-based firm.

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