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.

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