Uber is Handing Over its Southeast Asia Business to G
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Uber is Handing Over its Southeast Asia Business to Grab

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

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 a financial service platform.

Khosrowshahi mentioned in the mail,

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 the 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 the 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.

Tanya <span>Editor In Chief</span>
Written By
Tanya Editor In Chief

She is a content marketer and has more than five years of experience in IoT, blockchain, Web, and mobile development. In all these years, she closely followed the app development, and now she writes about the existing and the upcoming mobile app technologies. Her essence is more like a ballet dancer.

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