Grab confirms acquisition of Uber's SEA operations

Grab has acquired Uber's Southeast Asia operations, integrating Uber's ride-sharing and food delivery business in the region into its existing multi-modal transportation and fintech platform. News of Uber handing its Southeast Asia business to Grab first surfaced in February this year.The acquisition sees Grab taking over Uber's operations and assets in Singapore, Malaysia, Indonesia, the Philippines, Thailand, Myanmar, Cambodia and Vietnam. As part of the move, Uber will take a 27.5% stake in Grab and Uber's CEO Dara Khosrowshahi will join Grab’s board.In a statement to Marketing, Grab's spokesperson said that Uber employees, including its leaders, in its Southeast Asia operations will be offered employment in Grab. Uber employees whose coverage is wider than Southeast Asia will continue to work in Uber. The spokesperson declined to comment on the monetary value of the acquisition."Both platforms will operate simultaneously for the immediate term to ensure there is sufficient transition time for interested Uber drivers to be onboarded onto the Grab platform. After two weeks, the Uber app will close in Southeast Asia, and passengers and drivers can choose to use Grab for rides," the spokesperson added.In a statement to Marketing, Uber's spokesperson said no Uber employee lost their jobs, and both Uber and Grab .are committed to putting their people first as part of this transition.Following the integration of the UberEATS business, Grab will "rapidly expand" its existing GrabFood businesses in Indonesia and Thailand, to Singapore and Malaysia. GrabFood will be available across all major Southeast Asian countries in the first half of 2018. It is also working with Uber to promptly migrate Uber drivers and riders, UberEATS customers, merchant partners and delivery partners to the Grab platform.Grab will grow its core transport offering to include more localised transport services and new mobility solutions, in partnership with other transport providers and automakers. The company will also collaborate with governments and public transport operators to link public transport services and create seamless and integrated multi-modal commuter experiences.Its recently announced partnership with oBike for shared bicycles and personal mobility devices called GrabCycle, as well as an on-demand shuttle service known as GrabShuttle Plus, helps the company works towards its vision of a more seamless transportation.Grab will also continue to enhance and expand its suite of offerings under Grab Financial, including mobile payments, micro-financing and insurance. GrabPay as a mobile wallet will also be available across all major Southeast Asian countries by the end of 2018."We’re going to create more value for our growing ecosystem of consumers, drivers, agents - and now merchants and delivery partners," she added.According to Anthony Tan, group CEO and co-founder, Grab the acquisition "marks the beginning of a new era". He added that together with Uber, the combined business is now in an "even better position" to fulfill its promise to outserve consumers.Uber's Khosrowshahi said the deal is a testament to Uber's "exceptional growth" across the region over the last five years. He added that it will help Uber double down on its plans for growth, as it invests heavily in its products and technology to create the best customer experience."We’re excited to take this step with Tan and his entire team at Grab, and look forward to Grab’s future in Southeast Asia,” Khosrowshahi added.Read also:Grab partners Chubb as part of Grab Financial launchLaLiga and Grab partner to bring the league closer to SEA fansDigi and Grab tie-up: A data sharing goldmine?Grab and Samsung Electronics drive digital inclusion across Southeast AsiaSTB and Grab ink 3-year partnershipGrab and NTUC FairPrice to launch subscription serviceHyundai Motor Company and Grab ink a dealGrabPay names MD to handle SG, MY and PH markets