Grab has acquired Uber's operations in South-East Asia, ending speculation over the weekend that a deal had been reached between the two ride-hailing giants. India is now one of Uber's biggest marketplace in Asia and the company is holding firm in the location. He did not want to be identified as the deal is not public yet.
"It will help us double down on our plans for growth as we invest heavily in our products and technology", Uber CEO Dara Khosrowshahi said in a statement. Travis Kalanick, its former chief executive officer, sold Uber's business in China in 2016 in return for a 17.5 percent stake in Chinese ride-hailing leader Didi Chuxing. In short, this means that Uber users and drivers in Malaysia will be migrated over to Grab and GrabFood will take over from Uber Eats after the Uber app shuts down on 8 April 2018 while the Uber Eats app shuts down in May. New entrants and the strength of second-place regional players such as Lyft Inc.in the US have complicated those efforts.
Uber Technologies Inc. has confirmed plans that it will be selling off its Southeast Asian operations to Grab and in turn it will garner a 27.5 per cent stake in a combined entity.
Singapore-based food delivery and rideshare service Grab has agreed a deal to acquire Uber's South East Asian operations, including the UberEats food delivery service.
Uber's app is displayed on a smartphone in Bangkok
However, mergers and consolidations seem to be the answer on this, especially after Japan's Softbank Group made a large investment in Uber earlier this year. Today, with more than 86 million mobile app downloads, it offers a wide range of ride-hailing services in 191 cities across Singapore, Indonesia, the Philippines, Malaysia, Thailand, Vietnam, Myanmar and Cambodia.
It is fair to ask whether consolidation is now the strategy of the day, given this is the third deal of its kind ...
On Uber's official blog, Khosrowshahi stated, "One of the potential dangers of our global strategy is that we take on too many battles across too many fronts and with too many competitors".
Uber once wanted to expand all over the world, but on Monday it added to its list of big strategic retreats-with a little encouragement from its biggest investor these days, SoftBank.