Uber Exits South East Asia After Selling Its Stake To Grab

Although Uber pioneered the business of ride-sharing, it seems they are now facing so many competitions and this is forcing them to pick their fights-so to speak.

Reports have emerged that Uber is selling its South East Asia ride-share and food delivery business operations to its rival and competitor Grab.

The action signals a further withdrawal from international operations for Uber after it sold its China business to local rival Didi Chuxing. Both firms describe the deal as a win for their passengers, but analysts warn it could mean higher prices. Grab is South East Asia’s most popular ride-sharing firm with millions of users across eight countries.

Under the terms of the deal, Uber will take a 27.5% stake in Singapore-based Grab. Uber’s chief executive, Dara Khosrowshahi, will also join Grab’s board. Unsurprisingly, the value of the deal has not been made public.

Commenting, Grab’s chief executive Anthony Tan said the deal “marks the beginning of a new era” in which the merged business would be better placed to serve customers.

Dara Khosrowshahi, Uber CEO said the deal would “help us double down on our plans for growth as we invest heavily in our products and technology”.

The deal marks Uber’s third retreat after it withdrew from China in 2016 and sold its Russia business to local firm Yandex last year. According to the BBC, Uber invested $700m in its Southeast Asia business and another $2bn in China before it sold its operations there.