Statements from Uber and Grab did not disclose the value of the deal between them in Southeast Asia.
Singapore:
Singapore-based ride-hailing firm Grab announced Monday it has bought US rival Uber's business in Southeast Asia, ending a fierce battle for market share in the region. The deal marks U.S. company's second retreat from the Asian market.
Grab said in a statement it is buying Uber's ride-sharing and food delivery operations in the region. In exchange, Uber will receive a 27.5 percent stake in Grab. The transaction will also include Uber CEO Dara Khosrowshahi joining Grab's board.
The statement did not disclose the value of the deal between Uber and Grab.
"Today's acquisition marks the beginning of a new era," said Grab chief executive Anthony Tan. "The combined business is the leader in platform and cost efficiency in the region."
Grab and Uber were locked for years in a turf war in the region of about 650 million people with an increasingly affluent middle class.
Grab said it will take over Uber's operations and assets in eight countries in the region, and will expand its food delivery services.
But Grab, which operates in 195 cities in eight Southeast Asian countries, became the dominant force in ride-hailing, leaving its troubled US rival struggling. Grab started as a taxi-hailing app in Kuala Lumpur in 2012.
The sale is Uber's latest withdrawal from a market where the ride-sharing titan had faced fierce competition, as new chief executive Dara Khosrowshahi seeks to stem huge losses and move past a series of scandals.
After a fierce battle, Uber sold its China operations to rival Didi Chuxing in 2016 in return for a stake, and last year the US firm merged in Russia with the taxi-hailing app of internet giant Yandex.
The deal with Grab is similar to the one struck with Didi.
Expectations of consolidation in Asia's fiercely competitive ride-hailing industry were stoked earlier this year when Japan's SoftBank Group Corp made a multi-billion dollar investment in Uber.
SoftBank is also one of the main investors in several other big ride-hailing firms including Grab, China's Didi Chuxing, and India's Ola.
Grab said it will take over Uber's operations and assets in eight countries in the region, and will expand its food delivery services.
(With inputs from AFP and Reuters)
Grab said in a statement it is buying Uber's ride-sharing and food delivery operations in the region. In exchange, Uber will receive a 27.5 percent stake in Grab. The transaction will also include Uber CEO Dara Khosrowshahi joining Grab's board.
The statement did not disclose the value of the deal between Uber and Grab.
"Today's acquisition marks the beginning of a new era," said Grab chief executive Anthony Tan. "The combined business is the leader in platform and cost efficiency in the region."
Grab and Uber were locked for years in a turf war in the region of about 650 million people with an increasingly affluent middle class.
Grab said it will take over Uber's operations and assets in eight countries in the region, and will expand its food delivery services.
But Grab, which operates in 195 cities in eight Southeast Asian countries, became the dominant force in ride-hailing, leaving its troubled US rival struggling. Grab started as a taxi-hailing app in Kuala Lumpur in 2012.
The sale is Uber's latest withdrawal from a market where the ride-sharing titan had faced fierce competition, as new chief executive Dara Khosrowshahi seeks to stem huge losses and move past a series of scandals.
After a fierce battle, Uber sold its China operations to rival Didi Chuxing in 2016 in return for a stake, and last year the US firm merged in Russia with the taxi-hailing app of internet giant Yandex.
The deal with Grab is similar to the one struck with Didi.
Expectations of consolidation in Asia's fiercely competitive ride-hailing industry were stoked earlier this year when Japan's SoftBank Group Corp made a multi-billion dollar investment in Uber.
SoftBank is also one of the main investors in several other big ride-hailing firms including Grab, China's Didi Chuxing, and India's Ola.
Grab said it will take over Uber's operations and assets in eight countries in the region, and will expand its food delivery services.
(With inputs from AFP and Reuters)
