Grab reportedly to acquire Uber’s Southeast Asian business
Uber is reportedly preparing to sell its Southeast Asian business to Grab in exchange for a stake in the Singaporean ridesharing company that has a big presence in that region.
First Uber was beaten by its competitor in China, Didi hence selling their business to them in August 2016. Uber has also merged its local business with Yandex’s ride-hailing service for a 37 percent stake in Russia.
According to a report by CNBC, the ride-sharing company lost a mind-boggling $4.5 billion in 2017 on $7.5 billion in sales.
At the Dealbook conference in November 2017, Uber CEO Dara Khosrowshahi noted that he thought the company was “overcapitalized” in Southeast Asia, adding he was “not optimistic that market is going to be profitable anytime soon.”
Last year, Grab claimed that it has a market share of 95 percent in third-party taxi-hailing and 71 percent market share in private vehicle hailing.
It also announced that it has completed 1 billion rides in Southeast Asia. Uber on the other hand, did not divulge any numbers on its Southeast Asia’s operation.
It’s said that Uber is looking for a “sizable stake” in the company. However, the report does mention that a deal has not yet been reached between the two parties and it’s also uncertain how long it might take before a deal can be clinched.
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