Uber bartering Southeast Asian business to regional competitor Grab

Uber bartering Southeast Asian business to regional competitor Grab

Uber Technologies Inc. has reached an agreement to sell its Southeast Asian ride-hailing business to rival Grab and could announce the deal as early as Monday morning in Singapore, people familiar with the matter said. In exchange, Uber will receive a 27.5 % stake in the company. He did not want to be identified as the deal is not public yet.

Pulling out of markets like Southeast Asia would boost profits at a company that has burned through $10.7 billion since its founding nine years ago. It sold off its China business to a competitor and partner, Didi Chuxing, taking a stake in Didi. 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.

Uber declined to comment and Grab, which has an estimated valuation of about US$6 billion (RM23.5 billion), declined to comment.

It is Uber's second exit from Asia after pulling out of China in 2016.

Grab will integrate Uber's ridesharing and food delivery business in eight countries in the region into Grab's existing multi-modal transportation and fintech platform. In the meantime, Uber will still be operational for the next two weeks.




The value of the deal, which Grab said was the largest ever acquisition by a Southeast Asian Internet company, was not disclosed.

"It will help us double down on our plans for growth as we invest heavily in our products and technology to create the best customer experience on the planet", Khosrowshahi said in a statement.

Grab will extend its leadership as it takes over Uber's operations and assets in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Chief executive and co-founder Anthony Tan, a graduate of Harvard Business School, said the Uber deal "marks the beginning of a new era" in using mobile businesses to provide an array of services.

Uber's full-year net loss widened to $4.5 billion in 2017 as it endured multiple scandals and the replacement of its CEO. Uber meanwhile continues exiting markets, including the aforementioned China and also Russian Federation. Similar to Uber, Grab offers a range of transport-focused services, including ride-hailing and ride-sharing, among other similar offerings.

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