Reportedly, Uber will sell its Southeast Asia business to rival Grab and this information is said to be from a source who has knowledge about the deal.
Uber Technologies Inc., reportedly will sell its Southeast Asia business to rival company Grab, which is its bigger regional competitor.
This news is said to be from a source with a direct knowledge about the issue. Given that this will eventually take place, it would be the second retreat from Asia of the US-based company.
The said deal between the two companies will be announced on Monday, based on the article recently published in the business section of ABS-CBN.
If ever, this will be the first big consolidation in the Southeast Asia industry. This region in the globe is known to be the home of 640 million people.
The said consolidation will put a heavy pressure to other rivals such as Go-Jek from Indonesia which is being backed by Alphabet Inc.’s Google and China’s Tencent Holdings Ltd.
With regards to the transaction, it was mentioned in the article that Uber will get a maximum of 30-percent stake in the combined business.
This information came from a source who refused to be named because the deal is not yet revealed to the public.
On the other hand, a separate source stated that the US-based company will have a 25 to 30 percent stake in the Singapore-based company.
This will result to a value of the entire business at $6 billion.
Japan’s SoftBank Group Corp. has invested to Uber early this year, which is also one of the majot investors of Grab, stated prior to this that the US-based company will consolidate its its Southeast Asian business with the Singaporean company.
These two transportation companies have raised billions of dollars from global investors to fund their plans regarding their business expansion.
In line with that, they offer big discounts and various promotions to gain the attention of passengers as well as drivers.
With this reported pending consolidation between the two transport companies, both of them declined to comment about this, based on the article.