Uber is said to have agreed to a sale of its Southeast Asian business to Grab. Sources say that the official announcement could be made as early as Monday; and sees both the ride-sharing and Uber Eats components being acquired by Grab.
In return, Uber will own a stake of between 25 and 30 percent in the new joint business. More importantly, pulling out from the market would improve the profitability of the the company as it reduces the amount of competition that it faces. Uber has not yet managed to turn a profit since being founded.
The deal is said to have been pushed through by Softbank, which happens to own stakes in both Uber and Grab. The Japanese company has been pushing to consolidate the multiple ride-sharing businesses that it owns; including Didi-Chuxing in China.
Rumours of Uber retreating from Southeast Asia first appeared in January. While attempts were made to quash such talk, they refused to die down. Leaving more speculation as to when the actual deal would take place.
[Source: Bloomberg]
