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)
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Now that Uber has withdrawn from Southeast Asia, attention may shift to corporate operations in India, which accounts for more than 10 percent of Uber's global activity, but has not yet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.

News Comment

Today's Industry

NORD-DuoDrive.jpg: The innovative and patented DuoDrive geared motor reaches outstanding system efficiency Image: NORD DRIVESYSTEMS

Selasa, 17 Mei 2022 - 14:00 WIB

NORD DRIVESYSTEMS at LogiMAT in Stuttgart From 31st May to 2nd June 2022 NORD will present innovative drive solutions for intralogistics

The specialist LogiMAT exhibition in Stuttgart offers as comprehensive overview of the intralogistics and process management market. As one of the market leaders for drive technology, NORD presents…

President Jokowi attends the meeting between ASEAN leaders and American entrepreneurs at Intercontinental the Willard Hotel, Washington DC, Thursday (05/12). Photo by: Laily Rachev

Selasa, 17 Mei 2022 - 13:00 WIB

President Jokowi Invites US CEOs to Boost Cooperation with Indonesia

President Joko “Jokowi” Widodo has invited company CEOs in the United States to boost cooperation with ASEAN countries, particularly Indonesia.

President Jokowi, President Biden, and ASEAN Leaders on a group photo prior to the dinner, at the White House, Washington D.C., Thursday (05/12)

Selasa, 17 Mei 2022 - 12:28 WIB

President Jokowi, ASEAN Leaders Attend Dinner Hosted by US President

President Joko “Jokowi” Widodo Thursday (05/12) attended a dinner with the leaders of ASEAN countries hosted by President of the United States Joe Biden at the White House, Washington D.C.

(Photo: © 2022 KRAIBURG TPE)

Selasa, 17 Mei 2022 - 11:23 WIB

TPE unleashes benefits for pet accessories

The pet care market is rapidly expanding as pet ownership increases, as does spending on pet food, grooming tools, and accessories. Pet owners are significantly concerned about the prevalence…

Sergey Sedov, Founder and CEO of Robocash Group

Jumat, 13 Mei 2022 - 16:15 WIB

Robocash Group reached 2 BN USD of disbursement and issued audited financial report of 2021

Robocash Group publishes the audited combined financial statements for the year ended 31 December 2021. The Group reached an all-time high 2 BN USD of issued financing and is expected to increase…