UBER DRIVES GRAB OUT OF S-E ASIA

Deal marks US firm’s further retreat from international markets

UBER sold its Southeast Asian business to rival Grab yesterday, ending a bruising battle between the ride-hailing behemoths and marking the United States firm’s latest retreat from international markets.

Singapore-based Grab is taking over the ride-sharing and food delivery operations of Uber in the region, with the Californiaheadquartered company to receive a 27.5 per cent stake in the business in return.

The sale is Uber’s latest withdrawal from a market where it had faced tough competition, as 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 it merged in Russia with the taxi-hailing app of Internet giant Yandex.

The deal with Grab — which operates in eight Southeast Asian countries — is similar to the one struck with Didi, and ends a fight for market share in a region that is home to some 650 million people and an increasingly affluent middle class.

“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.”

Khosrowshahi, who is joining Grab’s board as part of the agreement, said: “This deal is a testament to Uber’s exceptional growth across Southeast Asia over the last five years. It will help us double down on our plans for growth.”

The value of the deal, which Grab said was the largest ever acquisition by a Southeast Asian Internet company, was not disclosed.

Meanwhile, analysts have raised concerns a lack of competition could push up prices.