Uber Sells Southeast Asian Operations to Rival Grab

New hires relax at a lounge area in a Grab office in Singapore Sept 23 2016

On-demand ride hailing giant Uber Technologies Inc. agreed to sell its Southeast Asian operations to local rival Grab, exiting one of the fast-growing markets for ride-haling services in the world.

The statement did not disclose the value of the deal.

"Today's acquisition marks the beginning of a new era", said Anthony Tan, Chief Executive Officer of Grab.

The next stage of growth for Grab, the building of a Southeast Asia leading online-to-offline mobile platform, is now a possibility with the acquisition of Uber's services 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 USA rival struggling. However, Uber will keep a hold over 27.5% stake in the Singapore based company Grab.

More consolidation Uber anticipated making more deals with rivals, but said it had no plans to do another sale in which it consolidates its operations in exchange for a minority stake in a rival.

Grab, which started out as a taxi-hailing app in Kuala Lumpur in 2012, became the region's dominant ride-hailing service in past years with $4 billion raised from investors. Additionally, Uber CEO Dara Khosrowshahi will be joining Grab's board of directors, while Grab will be taking on 500 Uber employees across the region and acquiring UberEats in Southeast Asia. Now Uber is handing over to Grab in countries including Singapore, Malaysia, Indonesia, the Philippines, Thailand, Vietnam, Cambodia and Myanmar.

But Khosrowshahi's statement released on the company's bog reads indicates that Uber would not be willing to retreat further as they already did in China and Southeast Asia.

Office workers walk past Grab and Uber offices on Monday.

Regarding fares, Grab says that nothing will change so if you've been using Grab your trips should still cost about the same.

On the other hand, Grab gets to expand on its meal delivery service being merged with Uber Eats.

Why Grab? Why not Uber? In the very recent past, When Uber departed China, Didi quickly slashed its driver bonuses and the number of available cars on the road shrank considerably in all major Chinese cities.

Related News:

Most liked

America's oldest gun maker files for bankruptcy as sales decline nationwide
Arms manufacturers had for years ramped up production as gun ownership became a red-hot social, and political flashpoint. Remington has not indicated whether the bankruptcy filing will affect the agreement to replace the parts.

China eyes new yuan-denominated oil benchmark with futures launch
Brent and WTI, in contrast, were down by that time, weighed down by concerns over a looming USA trade dispute with China. Prices assessed at the Shanghai exchange will reflect China's crude supply and demand.

Trump's lawyer denies intimidating Stormy Daniels
Clifford with financial ruin .) It's about who gets to decide when their stories get told and under what terms. Michael Avenatti told 60 Minutes the reason he took the case was because his client was honest and honorable.

Black Panther becomes Marvel's highest grossing film
Globally, the film has grossed $1.237 billion in sales, beating out 2013's Iron Man 3 , which brought in $1.214 billion. This weekend will probably see Black Panther finally relinquish the #1 spot at the box office to Pacific Rim Uprising .

Fabregas leaves door open on future Arsenal return
Arsenal have just eight games remaining in the Premier League season as they attempt to qualify for the Champions League. Arsenal , after the worldwide break will play CSKA Moskva in the Quarter Finals of the Europa League.

Israeli sentencing of Ahed Tamimi symbolises conflict
Each year hundreds of Palestinian youths are rounded up, interrogated and held in military detention. "She is not a little girl, she is a terrorist", said Israeli Culture Minister Miri Regev.

Daniel Bryan's top five moments in WWE
Bryan was out with injuries and it took a long time for WWE medical staff to finally agree with Bryan's personal doctors. The 11-time world champion assured fans on his podcast this week that, sadly, it's never going to happen.

'March for Our Lives' crowd smaller than expected
"Thousands of local demonstrators marched up Congress Avenue Saturday afternoon, as part of the 'March for Our Lives" rally . The spending bill, which President Donald Trump signed on Friday, also includes grants to help schools prevent gun violence.

MI looks to defend against upset in Final Four
Down by 4 to MI in the last 15 seconds, Florida State HC Leonard Hamilton elected to not foul and extend the game. But after trailing 15-10, the Seminoles tied it at 15-15 on a basket by Cofer and a three-pointer by PJ Savoy.

Three Teams Advance to Elite Eight
Graham, the Big 12 player of the year, scored only two points in the first half, hitting only 1 of 7 shots from the field. But for at least one more game, the higher seed prevailed, sanity ruling on a relatively ho-hum Friday.

Warriors' Steph Curry comes back only to go down again
What was supposed to be a triumphant night for Stephen Curry turned into perhaps the Golden State Warriors' worst nightmare. Barring a setback in shoot-around or pregame warmups Friday, Curry will return to the starting lineup against the Hawks .

National treasure Sister Jean wants you know she's an worldwide superstar
College basketball fans are taking notice of Sister Jean, many wondering whether her prayers will lead the Ramblers to a title. The nun has been at Loyola-Chicago for more than a half-century and was inducted into their Athletics Hall of Fame past year .

Pa. school district stocks classrooms with rocks to combat school shooters
Dori Bornstein said, "At this point, we have to get creative, we have to protect our kids first and foremost". A parent also told WNEP that the buckets of rocks are "absurd".

Iowa family found dead in Mexico resort of Tulum
Family members became anxious about the family after they were supposed to return Wednesday from the trip but did not return. They also tried to locate the family by tracing their cell phones but found there was "no movement on their phones".

In Persian New Year greeting, Trump hits Iran's self-serving 'rulers', 'hostile' IRGC
Of the incoming secretary of state, current CIA Director Mike Pompeo , Trump said the two are thinking more closely in line on worldwide issues.