Uber Exits South East Asia
Due to a lack of profitability in the South East Asian markets, Uber has announced to sell their operations to regional rival Grab, says one of Uber’s board members. Other sources have reported that this is the second time Uber has had to pull out of Asia.
The transaction will mean Uber will have a 30% stake in Grab operations, valuing the rival business to $6 billion. Last year, Uber lost $4.5 billion due to intense competition in the US and Asia as well as making headlines for regulatory violations in Europe and sexual harassment allegations from their CEO.
Ubers deal with Grab mirrors a similar situation in China where Didi Chuxing bought out the company in exchange for a stake in the company. A board member mentions that Uber is currently preparing its initial public offering in 2019 but for now their focus will turn to the Australian, American and European markets.
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