Today, March 26, Grab announced that they have bought Uber’s business in Southeast Asia. The deal is considered as one of the largest consolidation in Southeast Asia considering Grab and Uber are the giant ride-hailing firms in Southeast Asia. According to reports, Grab is buying Uber’s ride-sharing and food delivery operations making Grab the leading online-to-offline mobile platform and the major ride for food delivery in the entire Southeast Asia.
Grab was launched in 2012. Since then, it had been one of the dominant ride-hailing app in Southeast Asia and as of now, the company have more than 2.1 million drivers in Southeast Asian countries such as Singapore, Indonesia, Philippines, Malaysia, Thailand, Vietnam, Myanmar and Cambodia. Meanwhile, Uber is the largest firm with having its operations on 600 cities, but as they progress, the company was rocked by issues and scandals, most specifically in Asia and in Europe.
With the consolidation, Grab will now be taking over the operations and assets of Uber in the countries of Vietnam, Singapore, Myanmar, Indonesia, Thailand, Malaysia, Cambodia, and Philippines. In exchange of this, Uber will receive 27.5% stake in Grab and Uber CEO Dara Khosrowshahi will now be joining Grab’s board.
Although Uber bids farewell, Dara Khosrowshahi, CEO of Uber is excited and is looking forward to the betterment of Grab’s company.
“This deal is a testament to Uber’s exceptional growth across Southeast Asia over the last five years. 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. We’re excited to take this step with Anthony and his entire team at Grab, and look forward to Grab’s future in Southeast Asia,”
Likewise, Anthony Tan, Group CEO and Co-founder of Grab, takes the acquisition as a step closer to fulfilling Grab and Uber’s goal to give the customers the best service they can offer.
“We are humbled that a company born in SEA has built one of the largest platforms that millions of consumers use daily and provides income opportunities to over 5 million people. Today’s acquisition marks the beginning of a new era. The combined business is the leader in platform and cost efficiency in the region. Together with Uber, we are now in an even better position to fulfill our promise to outserve our customers. Their trust in us as a transport brand allows us to look towards the next step as a company: improving people’s lives through food, payments and financial services.
For years, these two ride-hailing companies have been rivals, but Grab operates in 195 cities in Southeast Asian countries and is more dominant in the region, making Uber, its competitor left out and struggling.
In 2016, Uber also sold their operations in China to another rival, Didi Chuxing. Aside from this, last year, Uber merged with one of the giant taxi-hailing app, Yandex.
The case of Uber selling their operations to Grab is the same with the Didi case.
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