Grab Officially Announces Uber Acquisition in Southeast Asia
By : Ahmad Fadli Dan Aldo Bella Putra | Monday, March 26 2018 - 19:00 IWST

Penyedia transportasi berbasis aplikasi, Grab Indonesia (Foto Ist)
INDUSTRY.co.id - Jakarta - Uber has agreed to sell its stake in Southeast Asia to Grab, which is Southeast Asia's biggest competitor. This will be the second US Company to retreat from the Southeast Asian market.
The deal will be announced soonest Monday, marking the first major industry consolidation in Southeast Asia, and putting pressure on rivals such as Go-Jek in Indonesia, powered by Google Alphabet Inc. and Tencent Holdings China Ltd.
Reported by Reuters on Monday (26/3) a source said that Uber will get 25 percent to 30 percent stake in Grab, a total business value of USD 6 billion,
Meanwhile, the Uber officially still has not commented on the deal
The consolidation comes as competition for Asia's competitive online taxi industry sparked earlier this year when Japan's SoftBank Group Corp. made billions of dollars in investments in Uber.
SoftBank is also one of the main investors in some Uber rivals, including Grab, Didi Chuxing China, and Ola India.
Online taxi companies across Asia rely on discounts and promotions to attract both consumers and drivers in fast-growing markets, thereby reducing profit margins.
Uber, which is preparing its first IPO in 2019, lost $ 4.5 billion last year and faces fierce competition at home and in Asia, as well as hard regulation in Europe.
CEO Uber Dara Khosrowshahi told a conference in New York in November that operations in Asia would not be profitable in the near future, mainly because Uber is giving a big subsidy in the Asian market.
Khosrowshahi, who took over the top spot at Uber in August, has been working to clean up the company's finances before the IPO.
Now that Uber has withdrawn from Southeast Asia, attention may shift to corporate operations in India, which accounts for more than 10 percent of Uber's global activity, but has not yet produced satisfactory profit margins
The Uber deal with Grab is similar to what happened in China in 2016, when there was a price war and eventually Didi Chuxing bought Uber's business in China.
Read Also
Electric cars are future of Indonesia's automotive industry: Jokowi
Milrem Robotics to Showcase their Most Advanced Autonomous RCV at…
AIT Worldwide Logistics plans to increase global footprint with Lubbers…
Grab has been operating for four years in Vietnam
Garuda flights to Osaka Japan were canceled due to typhoon
Today's Industry

Senin, 03 Maret 2025 - 14:03 WIB
Solusi Sinergi Collaborates with Era Media to Reach 40 Million Internet Customers with Artificial Intelligence
PT Solusi Sinergi Digital Tbk (WIFI) announced a strategic collaboration with PT Era Media Sejahtera Tbk (DOOH) to support the WIFI project in marketing affordable internet for the people, which…

Selasa, 11 Februari 2025 - 16:31 WIB
Cipta Perdana Lancar Ready to Expand and Diversify for Sustainable Growth
Since its establishment in 2007, PT Cipta Perdana Lancar Tbk (PART) has continued to transform into a major partner in the supply of spare parts for the automotive, sanitary, and electronics…

Rabu, 22 Januari 2025 - 12:53 WIB
MICE Activities at JCC Halted, PT GSP Continues Legal Process
PT Graha Sidang Pratama (PT GSP), the investor and manager of the Jakarta Convention Center (JCC), revealed that the company is currently unable to run Meeting, Incentive, Convention and Exhibition…

Sabtu, 14 September 2024 - 16:56 WIB
Essential Tips for Choosing Personal Health Insurance in the US
Choosing the right health insurance plan in the United States can be a complex task, especially with the variety of options available and the ever-changing landscape of healthcare policy. Here…

Sabtu, 14 September 2024 - 16:53 WIB
The Top 10 Insurance Companies in the US for 2024
In the ever-evolving landscape of insurance, selecting the right company can significantly impact your financial security and peace of mind.
News Comment