Ground TransportationFood, finance, even bike-sharing to be expanded across the region

Grab pounces on Uber in South-east Asia

Grab pounces on Uber in South-east Asia

Grab will integrate Uber’s ridesharing and food delivery business into Grab’s existing multi-modal transportation and fintech platform.

Grab has acquired Uber’s South-east Asia operations in a deal that is the largest-ever of its kind in the region.

Grab will integrate Uber’s ridesharing and food delivery business into Grab’s existing multi-modal transportation and fintech platform. 

Grab said with the combined business, it would become the number 1 online-to-offline (O2O) mobile platform in South-east Asia and a major player in food delivery.

Grab will take 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% stake in Grab and Uber CEO Dara Khosrowshahi will join Grab’s board.

Anthony Tan, Group CEO and Co-founder, Grab said, “We are humbled that a company born in South-east Asia has built one of the largest platforms that millions of consumers use daily and provides income opportunities to over five million people.”

Tan said the acquisition of Uber “marks the beginning of a new era”. 

Tan Hooi Ling, co-founder, Grab, said GrabFood would be extended into all major South-east Asia countries in the next quarter. 

“GrabFood will also be another great use case to drive the continued adoption of GrabPay mobile wallet and support our growing financial services platform.”

Grab will rapidly expand its existing GrabFood businesses in Indonesia and Thailand to two more countries – Singapore and Malaysia – following the integration of the Uber Eats business. 

Grab will also collaborate with governments and public transport operators to link public transport services and create seamless and integrated multi-modal commuter experiences. 

“The recently announced GrabCycle marketplace for shared bicycles and personal mobility devices, and GrabShuttle Plus for on-demand bus routes are pilots toward this vision,” Grab said in a statement.

In payments and financial services, Grab will continue to expand its suite of offerings under Grab Financial, including mobile payments, micro-financing, insurance and other financial services “for millions of underserved and unbanked consumers, micro-entrepreneurs and small businesses in the region”. 

GrabPay as a mobile wallet will be available across all major South-east Asian countries by the end of the year.

The Uber app will continue to operate for two weeks to ensure stability for Uber drivers. Uber Eats will run until the end of May, after which Uber delivery and restaurant partners will move to the GrabFood platform.

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