Uber selling Southeast Asian business to regional rival Grab

Grab will purchase Uber's ride-hailing and food delivery operations in Southeast Asia in a deal valued at several

SoftBank already had investments in Grab and India's Ola, and Vision Fund Chief Executive Rajeev Misra had urged Uber to focus less on Asia and more on profitable markets such as Latin America, a person familiar with the matter said. When Grab started in the Philippines and Vietnam, it showed many how to use smartphones and its app. Grab also found that most potential riders did not have credit cards, so it accepted cash. "Grab will be the dominant ride-hailing player here", he said when contacted by the NSTP Business. In e-mails that were sent to staff, the CEO of Uber; Dara Khorowshahi told that the company would commingle with its big rival of Southeast Asian, Grab. In 2015, Uber announced an investment of United States dollars 1 billion in India to expand its services here.

Grab has promised that its fare structure will not change for all its services even after the merger effective April 8 this year.

The online-to-offline company will integrate Uber's ridesharing and food delivery business in the region into Grab's existing multi-modal transportation and fintech platform.

Grab has locked horns with its own regional rival, Go-Jek, which is backed by Alphabet Inc.'s Google and China's Tencent Holdings Ltd.

Ms Nancy said she met Grab on Monday following news of the acquisition. However, a professor of practice in strategy at Warwick Business School commented that SoftBank is likely to be mastermind of the deal.

"SoftBank has proposed that Uber retrench back to Europe and North America where it has large market shares and reasonable prospects of emerging as an eventual victor".

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".

Calalang added that Congress can also take charge of granting franchises to TNVS companies.

He reckons that SoftBank would emerge as the clear victor as a source of major losses in two of its investments will be eliminated in the merger. According to reports, the company suffered $4.46 billion (roughly Rs. 28,900 crores) in losses previous year, but improved over time, losing $1.1 billion in the fourth quarter, compared with $1.5 billion in the third quarter. It is now the largest shareholder of Uber with two representatives on the board of 17 members.

Not more than two years ago, Uber performed much the similar thing in China, during its time of ceded control over the market to rival, Didi Chuxing.

Many rely on apps because taxis tend to be less safe or have drivers that impose unfair fees.

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