Ridesharing service providers Grab and Uber announced Monday the merger of their operations in Southeast Asia including the Philippines, with Grab as the surviving entity, in the largest deal of its kind in the region.
Uber, a California-based company, started advising customers that it would “combine our operations with Grab to lead you in the next chapter of ridesharing in the Philippines and across Southeast Asia.”
“What this means for you: we will be transitioning our services over to the Grab platform by April 8, 2018, so all requests after that date should be made from the Grab app. However, you can still use the Uber app in more than 80 countries around the world,” Uber said in the announcement.
The value of the deal, which Grab said was the largest ever acquisition by a Southeast Asian internet company, was not disclosed. The sale is Uber’s latest withdrawal from a market where it had faced tough competition, as new chief executive Dara Khosrowshahi seeks to stem huge losses and move past a series of scandals.
Grab and Uber said in a joint statement the deal would integrate the ridesharing and food delivery business of Grab and Uber in the region into Grab’s existing multi-modal transportation and fintech platform.
Singapore-based Grab said with the combined business, it would drive towards becoming the number one online-to-offline mobile platform in Southeast Asia and a major player
Grab said it would extend its leadership as the most cost efficient Southeast Asian platform, as it took over Uber’s operations and assets in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
As part of the acquisition, Uber will take a 27.5-percent stake in Grab and Khosrowshahi would join Grab’s board.
“We are humbled that a company born in SEA has built one of the largest platforms that millions of consumers use daily and provides income opportunities to over 5 million people. Today’s acquisition marks the beginning of a new era,” Grab chief executive and co-founder Anthony Tan said.
Tan said the combined business would be the leader in platform and cost efficiency in the region.
“Together with Uber, we are now in an even better position to fulfill our promise to outserve our customers. Their trust in us as a transport brand allows us to look towards the next step as a company: improving people’s lives through food, payments and financial services,” he said.
Khosrowshahi said the deal was 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 as we invest heavily in our products and technology to create the best customer experience on the planet. We’re excited to take this step with Anthony and his entire team at Grab, and look forward to Grab’s future in Southeast Asia,” she said. With AFP
Brian Cu, country head of Grab Philippines, said the combined services of Grab and Uber, signaled a wider network of TNVS drivers and passengers and improved ridesharing services.
Cu said with Grab Philippines’ larger fleet of drivers on our platform, passenger transportation needs would be met faster.
“Passengers will get to enjoy shorter waiting times, more convenient and affordable rides through one platform,” he said.
The Land Transportation Franchising and Regulatory Board said there were 59,020 driver-partners in the Philippines. With AFP