Grab acquires Uber's share of business in Southeast Asia

29 March, 2018, 02:24 | Author: Salvatore Jensen
  • Grab acquires Uber's share of business in Southeast Asia

Uber will sell its business in Southeast Asia to a local competitor, Grab, the ride-hailing company announced late Sunday, in a deal that experts say is created to position Uber for an initial public offering next year. The deal will also see Uber CEO Dara Khosrowshahi joining the board of Grab.

As it stands, Grab operates in eight countries.

Grab has always been the dominant force in ride-hailing in Southeast Asia and speculation mounted that a deal with Uber was on the cards after Japanese financial titan Softbank invested huge sums in the USA firm.

Uber has announced plans to sell its south-east Asia business to the bigger regional rival, Grab.

In China, Uber has sold off its local business to competitor Didi Chuxing, also taking a stake in the Asian firm.

Grab have said that they will try to keep changes to a minimum so all Uber Eats restaurants will be listed in GrabFood and all app history and benefits will be retained along with payment structures.

According to Uber in San Francisco, selling Southeast-based Uber is a measure to cut potential losses proposed by 2019.

Uber has raised more than $20 billion in funding since its inception, and it is one of the most valuable technology startups in the world. As a result of this deal, shares in Singapore's ComfortDelGro Corp. increased by 3% on Monday.

Uber, which is preparing for a potential initial public offering in 2019, lost $4.5 billion previous year and is facing fierce competition at home and in Asia, as well as a regulatory crackdown in Europe.

"Today's acquisition marks the beginning of a new era", said Anthony Tan, Chief Executive Officer of Grab.

Uber's official statement is of course trying to spin it positively, saying they were able to grow the business after investing $700 million in the region. And Uber was said to become profitable by 2022 through series of marketing strategies. But its latest exit suggests Uber is more than ever dependent on its home market of North America, not unlike Khosrowshahi's previous US-centric employer, Expedia Inc.

Uber, which is preparing for a potential initial public offering in 2019, lost $4.5bn previous year and is facing fierce competition at home and in Asia, as well as a regulatory crackdown in Europe.

This is just the latest worldwide retreat by Uber, which sold off its operations in China in 2016 and in Russian Federation in 2017. "The answer is no", Khosrowshahi said in a note to employees that was shared with Reuters.



Johnson slams claims Brexit campaign broke spending rules
The services carried out by AggregateIQ for Vote Leave were in accordance with the instructions of Vote Leave. Mr Sanni's allegations - denied by Vote Leave - centre on a £625,000 donation from Vote Leave to BeLeave.

Google Acquires Tenor GIF Platform, Will Still Operate as Separate Brand
Tenor mobile messaging services clubbed with the first GIF keyboard debuted on Apple's iOS operating system . To fix this issue, the company has begun experimenting with a "mobile-first" approach to indexing web pages.

Motorists warned on Easter traffic chaos with snow, rain forecast
That included one day where the temperature reached 74 degrees (on April 4) and one day where it reached 81 degrees (on April 10). We'll get through most of Wednesday with dry conditions, but clouds will hang around along with cool temperatures.

Watson crushes Kisner to claim Match Play crown
Watson played 109 holes over seven matches, going to the 18th hole just once when he halved his match with Julian Suri on Friday. We Know What We've Seen Here: DJ's record* drive. "Keeping that trophy means so much to all of us and I want to play my part".

Rams making No. 23 overall pick available in potential Odell Beckham trade
We want guys who are passionate about playing the game. "And we want guys that understand what it is to be a good teammate". Giants receiver Odell Beckham is making noises about a contract holdout, but the team doesn't think that's going to happen.

Snow headed for San Juan Mountains Monday into Tuesday
If you have Easter travel plans this weekend, Friday and Saturday will be days to keep an eye on as we move throughout the week. The timing for this is still uncertain, but the best rain chances look to be more Monday morning than Easter Sunday for now.

After Fatal Uber Incident, Nvidia Defers Autonomous Car Testing On Public Roads
Uber proactively suspended self-driving operations in all cities following the accident. Nvidia is temporarily suspending its self-driving auto tests on public roads worldwide.

Jewish Holocaust survivor (85) found stabbed to death in Paris flat
Authorities have refused to name the suspect but there are strong rumors that the perpetrators identity is being protected. Robert Ejnes, Executive Director of the umbrella group for French Jewish organizations, CRIF, told Hamodia that Mrs.

Apple's foldable iPhone may finally arrive in 2020
As it's now limited to the iPad Pro models, it's not available to those who don't have the budget for the more expensive tablets. Samsung already showed off a concept of a folding tablet screen but a real product still hasn't hit the market.

Linda Brown, lead plaintiff in Brown v Board case, dies
Eventually Brown became an educational consultant and public speaker. "I played with children that were Spanish-American". Smith was a 3rd grader when her father started a class-action suit in 1951 of the Brown v.