Uber Lets Go Of Southeast Asia Ops To Rival Grab
- Author: David Armstrong Mar 27, 2018,
Mar 27, 2018, 3:17
Under the agreement, Grab will acquire all of Uber's operations in a region of 620 million people, including food delivery service UberEats.
Under terms of the deal, the San Francisco-based company will get a 27.5 percent stake in Grab. The value of the deal remains undisclosed.
Grab's chief executive Anthony Tan said the acquisition marks the beginning of a new era. The combined business is the leader in platform and cost efficiency in the region.
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.
But Grab, which operates in 195 cities in eight Southeast Asian countries, became the dominant force in ride-hailing, leaving its troubled United States rival struggling.
For Grab, the deal is a boon for its meal-delivery service, which will now merge with Uber Eats.
The deal was dismaying to many in Asia who have often compared the rival apps in search of the best deal.
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.
He pointed that after investing USD 700 million in the region, Uber will hold a stake "worth several billion dollars, and strategic ownership in what we believe will be the victor in an important global region". "So the most important thing is that service to our commuters will not be disrupted", Poe said in a statement Monday (March 26). And at the same time, Uber is also taking the heat in the form of high marketing expenses, required to keep up with Grab.
Existing Uber drivers, including Uber taxi drivers, can continue to drive for work for two weeks while Grab onboards them onto the Grab platform.
Why Grab? Why not Uber?
She urged the Land Transportation Franchise Regulatory Board to ensure that the vehicles available to the public would not dwindle and that the acquisition of Uber would only affect ownership and not service and availability. The US firm has taken 5.89 per cent stake in Didi.