Ride-hailing service, Uber has sold its South Asian business to its rival Grab. The companies have confirmed the same in a press note on Monday. The Singapore-based Grab has been a rival to Uber’s ride-hailing service in the South East Asian countries. Meanwhile, Uber CEO Dara Khosrowshahi said, ‘given our global market strategy, we are bound to take on many battles with too many competitors across too many fronts.
Though this is a third of the kind of this deal, from China to Russia, and now South East Asia, consolidation is not the strategy of the day’.
What’s more interesting is, after its ride-hailing service and food delivery business merger, Uber will hold 27.5% stake in Grab. A spokesperson for the company (Uber) said, ‘Uber’s Asia-Pacific staff will continue in their position. 500 Uber employee employed in the South East Asia region will move over to ‘Grab’. There are no lay-offs as a part of the deal’.
In the meanwhile, Uber had already started notifying it’s users that it will be transitioning over it’s service to the Grab platform by 08-Apr-2018.
Grab is operating in 190 cities in South East Asia and claiming a 95% market share in the ride-hailing services.