Uber Technologies Inc. has agreed to sell its Southeast Asian operations to its rival Grab, retreating from one of the fast-growing region again.
According to the agreement, Uber will take get a stake of 27.5 percent in the combined business. While Singapore-based Grab will get Uber’s operation in the region, including food delivery service UberEats, According to Bloomberg.
“This deal is 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,” said Dara Khosrowshahi, CEO of Uber.
Grab now is the biggest ride-hailing firm in Southeast Asia. It has a valuation of $6 billion after the most recent fund raising from Didi Chuxing, SoftBank and others last July.
This marked Uber’s second retreat from Asia. In 2016, Uber sold its business in China to Didi Chuxing in return for a stake in the company.
Uber lost $4.5 billion in 2017 as the company face intense competition in Asia and U.S. Earlier this year, SoftBank Group invested $1.25 billion in Uber. SoftBank also invested in other ride-hailing firms, such as Grab, China's Didi Chuxing, and India's Ola.