Why Uber is selling its Southeast Asian business to a local rival

Why Uber is selling its Southeast Asian business to a local rival

Uber has agreed to sell its south-east Asia operations to local rival Grab for an undisclosed sum as it continues to retreat from the region.

The release said Uber drivers will switch to the Grab online platform. He did not want to be identified as the deal is not public yet.

Market watchers said Uber's surrender in Southeast Asia - one of the world's fastest-growing economies with over 600 million people - could be a boon to Didi, as it has been gearing up for an global expansion.

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Uber's brand may be doomed to complete disappearance in Asia as the company left China previous year after merging with Didi Chuxing, China.

Khosrowshahi, who is joining Grab's board as part of the agreement, said: "This deal is a testament to Uber's exceptional growth across Southeast Asia over the last five years". New entrants and the strength of second-place regional players such as Lyft Inc.in the US have complicated those efforts.

Grab is a rapidly expanding ride-sharing, food delivery and financial services provider in the region. Until then, you can still use Uber Eats or call a vehicle or drive using the Uber app, but these are the grace periods for you to make the move to Grab. The value of the deal has not been disclosed yet.

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For Grab co-founder and CEO Anthony Tan, the truce would bring to an end a bruising battle for leadership in a Southeast Asian ride-hailing market forecast to reach $20.1 billion by 2025. Khosrowshahi said that it will assist us in dueling down on our suggestions for expansion as we expend deliberately in the products and technology to generate the supreme customer experience on the planet.

Uber lost $4.5 billion in 2017 as the company face intense competition in Asia and U.S. Earlier this year, SoftBank Group invested $1.25 billion in Uber. First it was China in 2016 and a deal in Russian Federation in 2017.

Grab (founded in 2012) is now present in 195 cities in eight Southeast Asian countries (Singapore, Malaysia, Indonesia, Philippines, Vietnam, Thailand, Myanmar, and Cambodia) and offers the widest range of on-demand transport services including private cars, motorbikes, taxis, and carpooling services, in addition to food and package delivery services. SoftBank is also a major investor in Grab and several other top ride-hailing companies around the world.

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