Published: Thu, March 29, 2018
Markets | By Josh Butler

Uber selling Southeast Asian business to regional rival Grab

Uber selling Southeast Asian business to regional rival Grab

While Uber is exiting Southeast Asia, it is still locked in an expensive battle in India against local rival Ola - another company in which SoftBank holds a big stake.

The acquisition of Uber's operations in Southeast Asia can be seen as a massive win for Grab, which began its operations as a e-hailing startup in Malaysia just a few years ago.

In China, Uber has sold off its local business to competitor Didi Chuxing, also taking a stake in the Asian firm.

As part of the deal, Uber will take a 27.5 per cent stake in Singapore-based Grab and Uber's CEO, Dara Khosrowshahi, will join Grab's board.

"The combined service of Grab and Uber signals a wider network of TNVS (transport network vehicle service) drivers and passengers and improved ridesharing services", Cu stated.

Why Grab? Why not Uber?

According to sources Uber is the largest firm of its kind with a presence in more than 600 cities, but it has been rocked by scandals and is facing fierce competition from rivals in Asia and Europe.

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Following the deal, Grab said it will also expand its food delivery services "Uber Eats" apart from its cab services across eight countries.

The countries included in the operation are: Cambodia, Indonesia, Malasia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Khosrowshahi said that it will assist us in dueling down on our suggestions for expansion as we expend deliberately in the products and technology to generate the supreme customer experience on the planet.

"Today's acquisition marks the beginning of a new era", said Anthony Tan, Grab's chief executive. The value of the deal has not been made public.

Khosrowshahi took over as CEO in August, replacing Travis Kalanick who was forced out by major Uber shareholders after a series of crises.

Uber's official statement is of course trying to spin it positively, saying they were able to grow the business after investing $700 million in the region.

Uber has been struggling to stem increasing losses, which amounted to $4.5 billion past year, as it also tries to tamp-down corporate scandals and an internal shakeup that replaced its CEO, Travis Kalanick.

Uber's first such deal was with Didi in China.

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