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Uber Sells South-East Asia Business To Rival Grab

29 March, 2018, 02:23 | Author: Kristi Dunn
  • The latest Uber Grab deal marks another exit for the former from another major market

While Uber is exiting Southeast Asia, it is still locked in an expensive battle in India against local rival Ola - another company in which SoftBank holds a big stake.

This comes after Grab announced on Monday that it had acquired its American rival's operations in South-east Asia for an undisclosed amount, following several months of speculation.

The deal between Uber and Grab is the latest move by Uber to move away from worldwide operations.

Uber CEO Dara Khosrowshahi has been pushing to burnish the financials of a company that's burned through $10.7 billion since its founding nine years ago.

Uber's CEO Dara Khosrowshahi said at a conference in NY in November that the company's Asia operations were not going to be "profitable any time soon", particularly because of how heavily Uber was subsidizing rides there. Softbank is one of the main investors of the Uber rival Grab.

A heatmap showing the demand for Grab services in Southeast Asia is displayed during Grab's fifth anniversary news conference in Singapore June 6, 2017.

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Uber drivers will switch to the Grab online platform and the Uber app will stop working in Asia in two weeks.

While Singapore-based Grab will get Uber's operation in the region, including food delivery service UberEats, According to Bloomberg.

"It will help us double down on our plans for growth as we invest heavily in our products and technology to create the best customer experience on the planet", Khosrowshahi said in a statement. Financial details were not disclosed.

Uber's two previous retreats, from China and Russian Federation, happened under former CEO Travis Kalanick. Preparation has been hard after the group lost $4.5 billion in 2017 as well as face high levels of competition in Asia and face a regulatory crackdown in Europe.

The countries included in the operation are: Cambodia, Indonesia, Malasia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Similar to Uber, Grab offers a range of transport-focused services, including ride-hailing and ride-sharing, among other similar offerings.

At the moment, the value of the deal has not been made public just yet but Grab says it is the largest-ever of its kind in Southeast Asia.



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