Uber to sell Southeast Asian business to Singapore-based rival

Ismael LynchMar 27, 2018

The San Francisco-based company sold its Chinese arm to local etaxi giant Didi Chuxing in a $35 billion deal back in 2016, which was followed by a merger with Yandex.taxi in Eastern Europe a year ago. It will also help Uber users to transition to Grab's apps in the coming weeks. He did not want to be identified as the deal is not public yet. In return, the US company will receive a 27.5 per cent stake in the merged business and Uber CEO Dara Khosrowshahi will join Grab's board.

For Grab co-founder and CEO Anthony Tan, the truce would bring to an end a bruising battle for leadership in a Southeast Asian ride-hailing market forecast to reach $20.1 billion by 2025.

Grab will also integrate Uber's ridesharing and food delivery business in the region into Grab's existing multi-modal transportation and fintech platform. Together with Uber, we are in an even better position to fulfil our promise to out serve our customers.

Ride-hailing companies throughout Asia have relied on discounts and promotions to attract both riders and drivers in the fast-growing market, driving down profit margins.

It is believed to have pushed for consolidation in order to improve revenues.

Grab's services in the Philippines began as GrabTaxi in 2013, while Uber's operations in the Philippines began in 2014. "So the most important thing is that service to our commuters will not be disrupted", Poe said in a statement Monday (March 26). It already delivers food in Indonesia and Thailand.

"And when you're that relevant, that real to every customer across the 600 million base, then you create huge value".

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

Grab added that the acquisition would accelerate its path to profitability.

While the group's CEO said that operations in Asia were not going to be "profitable anytime soon", Uber's performance is more promising among its core markets in US, Australia, New Zealand and Latin America, which are on the way to profitability.

The two businesses claim they are now working on the integration of the UberEats merchant, customer and delivery networks in order to minimise disruption while the service is transferred to the GrabFood service.

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