Uber Is Selling its Southeast Asia Business To Grab | Update
Mobile App

Uber Is Handing Over Its Southeast Asia Business To Grab

Uber CEO Dara Khosrowshahi told the employees about the deal via an email

https://dk2dyle8k4h9a.cloudfront.net/Uber Is Handing Over Its Southeast Asia Business To Grab

Uber, the ride-hailing giant is preparing for its exit from another sizeable market. According to the reports, Uber is selling its Southeast Asia business to its all-time competitor Grab. However, the financial figures of the deal have not been disclosed yet but Uber will own 27.5 percent of the company’s stake.

The news was circulated among Uber employees first via an email from Uber CEO, Dara Khosrowshahi. In the mail, he announced that Uber is selling its whole Southeast Asia business to Grab and he is also joining the company’s board. The mail also discloses that 500 Uber employees will also be going under Grab with the transition.

As a part of the deal, Grab will also be acquiring Uber’s food-delivering service, UberEats in that region. Launched in 2012, Grab is considered as Uber’s top notch competitor in Southeast Asia and has raised over $4 billion till now. The company also offers a payment service named GrabPay for its Southeast Asian market and recently launched financial service platform.

“It is fair to ask whether consolidation is now the strategy of the day, given this is the third deal of its kind, from China to Russia and now Southeast Asia,” Khosrowshahi mentioned in the mail. “The answer is no. One of the potential dangers of our global strategy is that we take on too many battles across too many fronts and with too many competitors. This transaction now puts us in a position to compete with real focus and weight in the core markets where we operate, while giving us valuable and growing equity stakes in a number of big and important markets where we don’t.”

This is not the first time Uber is taking off from a big taxi-hailing market, in 2016 the company surrendered its China business to local rival DiDi. Afterward, In 2017 Yandex the Russia based ride-hailing company took over Uber’s market in the country. However, the Grab’s deal is different from previous two business deals of Uber, where Yandex and DiDi held a joint venture with Uber in return for major ownership. On the other hand, Grab will be acquiring entire business of Uber in Southeast Asia.

The Southeast Asia  market consists of eight Asian countries with complex and different demands of each market. Uber always struggled in meeting the consumers’ needs comparing to Grab, which leverages of being native to come up with different strategies for every individual country.

MAD Team
Written By
MAD Team

MobileAppDaily host a team of experienced technical writers, industry wizards, and app experts who have an exact knack of content that caters to the needs of the mobile app targeted audience. We strive to bring you the best of tech!

Top Companies

InMobi
Singapore
Dot Com Infoway
New York, USA
M&C Saatchi Mobile
New York City, USA
Techmagnate
New Delhi, India
Fetch
London, UK
View full report

Latest Articles

Join our global community 135K Followers
Mobile App

5 Apps Inspired By #SeinfeldTaughtMe Trending on Twitter

MAD Team 4 min read  

Unless you’ve been living under a rock, you are well aware of the trending #SeinfeldTaughtMe trending right now on Twitter, the seminal NBC sitcom Seinfeld is a surprisingly good source of life hacks. In celebration of the globally trending #SeinfeldTaughtMe trending on twitter, I came up with

Mobile App

Qutoutiao App Adding More Firepower To Its Arsenal To Challenge TikTok

MAD Team 4 min read  

Since the time TikTok app has soared to unprecedented heights of success, there has been a considerable surge in the short video-sharing platforms.In one such instance, Qutoutiao App, a Chinese news aggregator which is known for its gossipy news and viral videos is spending millions of dollars t

Mobile App

AI-Driven Chat-Based Hyperlocal Services App Dunzo Raises $3.1M In Series C Funding

MAD Team 2 min read  

Artificial Intelligence-driven on-demand task manager app Dunzo has raised $3.1 million in a Series C funding round. The investment round was led by Milestone Trusteeship Services, N Lakshmi Narayanan (former Cognizant CEI), Monika Garware Modi, and the Raintree Family.The startup which was foun

Mobile App

JPMorgan Chase Bank Links Samsung Pay To Its App As A Payment Option

MAD Team 4 min read  

Chase, the US-based multinational bank has decided to upgrade its wallet payment app with the help of Samsung. Chase Bank customers who use the Chase pay wallet app has to use the QR scanning method to make in-store payment. This technology is much more troublesome compared to the latest methods lik