Singapore based cab service firm Grab announced on Monday that it has bought its rival Uber’s business in Southeast Asia ending a battle for market share following offered discounts in the region.
The Grab in a statement said that it is buying Uber’s ride-sharing and food delivery operations in the region. In exchange, Uber will receive a 27.5 % stake in the company. Uber’s chief executive Dara Khosrowshahi will also join Grab’s board.
Khosrowshahi said this was “a testament to Uber’s exceptional growth across South East Asia over the last five years. It will help us double down on our plans for growth as we invest heavily in our products and technology to create the best customer experience on the planet.”
However, the amount of the deal remains undisclosed.
Chief Executive of Grab, Anthony Tan said,”Today’s acquisition marks the beginning of a new era. The combined business is the leader in platform and cost efficiency in the region.”
Began as a taxi-hailing app in Kuala Lumpur in 2012, Grab now operates in 195 cities across Singapore, Malaysia, Indonesia, the Philippines, Cambodia, Vietnam, Myanmar, and Thailand. Softbank is one of the main investors of the Uber rival Grab. It has over 86 million app downloads.
Following the deal, Grab said it will also expand its food delivery services ‘Uber Eats’ apart from its cab services across eight countries.
Last year, the US-based Uber lost $4.5 Billion as it underwent a fundamental shakeup following a harassment scandal.
It is Uber’s second exit from Asia after pulling out of China in 2016.
Grab is SE Asia’s most popular ride-sharing firm with millions of users across eight countries.