It’s Official. Uber Sells To Grab in Southeast Asia, Including the Philippines
Uber has finally agreed to sell its Southeast Asian operations to its major competitor in the TVN space, Grab, but will still own a minority share. The report comes from Bloomberg, who cites from unnamed sources that Uber will own only a stake of between 25 percent and 30 percent after the deal goes through this morning.
This is all in the effort from Uber’s part to sort out its finances and prepare for a better IPO (initial public offering) the company had poised for 2019. The move is made by Japan’s Softbank, who backs both Grab and Uber, and acts as the consolidator in the supposed merger. It’s also partly due to the fact that Grab is more familiar with the Southeast Asian market and is supposedly able to serve it better.
In 2016, Uber merged with China’s Didi Chuxing, a similar car-hailing service. The merger between Grab and Uber can be exactly the same as what had happened in Russia and China, where Uber has thrown in the towel for such a money-bleeding battle in exchange for minority shares.
But what does this mean for riders? Well, a few things.
It means that Uber will cease Southeast Asian operations soon and commence transitioning its users to Grab—according to Reuters (via Engadget). This doesn’t affect riders directly, at least in the Philippines, seeing that many of Uber drivers are also registered with Grab.