Sources say Uber is considering bailing on its Southeast Asia division, with plans to sell it to regional competitor Grab, CNBC reported on Friday.
Singapore-based Grab claims to have 95 percent market share in southeast Asia and recently held a $2.5 billion round of funding in July 2017. It operates in more than 100 cities and has a presence in Indonesia, the Philippines, Malaysia, Thailand, Vietnam, and Myanmar, among other countries; according to the CNBC report, Uber is pursuing the same kind of exit it pulled off in China, where it lost billions of dollars before finally selling out to rival Didi Chuxing:
The move would mimic Uber’s strategy in China, where the company sold its ride-hailing operation to Didi for 20 percent ownership, and Russia, where the company merged its local business with Yandex’s ride-hailing business for a 37 percent stake. The objective would be to help Uber reel in its costs in preparation for an IPO as soon as next year, said the sources, who asked not to be named because the discussions are confidential. [ GIZMODO ]