Uber Sells Southeast Asia Stake To Rival Grab

Ride-hailing giant Uber is selling its business in Southeast Asia to regional rival Grab in its latest withdrawal from a daunting overseas market.

Grab, a fast growing Southeast Asian ridesharing, food delivery and financial services business, said on Monday that Uber will take a 27.5 percent stake in it and a seat on its board as part of the deal. Financial details were not disclosed.

Uber has been battling challenges, with its full-year net loss widening to US$4.5 billion in 2017 as it endured multiple scandals and the replacement of its CEO.

Since becoming CEO last year Dara Khosrowshahi has been maneuvering to make the company profitable before a planned initial public offering expected next year.

On the mainland, Uber sold off its local business to a competitor and partner, Didi Chuxing, taking a stake in Didi. In Russia, it agreed to merge its ride-hailing business in the country with Yandex, a local search-engine leader that also runs a popular taxi-booking app.

Grab provides services in Singapore, Indonesia, the Philippines, Malaysia, Thailand, Vietnam, Myanmar and Cambodia. It says it offers access to five million drivers and agents and handles over a billion transactions a year.

The deal was dismaying to many in Asia who have often compared the rival apps in search of the best deal. (AFP)