Uber continues Asia retreat with sale to Grab

Uber continues Asia retreat with sale to Grab

Uber will disappear after April 1.

Ride-hailing firm Uber Technologies Inc [UBER.UL] has agreed to sell its Southeast Asian business to bigger regional rival Grab, sources with knowledge of the matter said on Sunday, in what would be the US company's second retreat from Asia.

One of the most frequently used O2O mobile platforms in Southeast Asia, Grab is financed by the world's two largest global ride-hailing companies (DiDi Chuxing and Uber), and Japan's SoftBank Group, which is also Uber's investor.

Uber has undergone its share of problems and they still are not over.

Alternatively, the deal could place Grab in a monopolistic position, allowing it to have control in raising auto rental rates, reducing subsidies and changing fare structures, Mr Chua said.

"But I am personally not anxious".

Grab said in its FAQ that because Uber passengers will now be transiting to the Grab platform, this means there'll be more passengers, less waiting time and more earnings for drivers. The benefits and incentives structure will remain the same too.

In Indonesia, the region's biggest economy and most populous country with more than 250 million people, it's in a fierce battle for customers with local app Go-Jek, which has backing from Google and Tencent. The value of the deal has not been made public.

"As the only app left, Grab can easily increase prices", Pereira, 24, said.

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.

Off-late Uber has been linked to various controversies that led the then-40-year-old CEO Travis Kalanick quit the company.

Why Grab? Why not Uber?

Uber's next heavy focus area is likely to be India where it would compete with Ola.

Banker Le Hoang Ngan also uses both. There was no shortage of drivers and riders who liked the service that Grab had to offer. They stated that their stake is worth several billion dollars, and that includes their food delivery service, Uber Eats.

"I prefer convenience and what's the quickest, easiest".