Singapore – The leading ride hailing company Uber yesterday announced to sell their South Asian Business to Grab. Recently Japan’s Soft Bank invested a huge amount in Uber Technologies. Uber has decided to invest 27.5 stake in Grab and the Uber CEO Dara Khosrowshahi was about to join the board of Grab. He described his decision as pertinent and it was for the benefit of the two companies. This decision of the companies will build a symbiotic relationship between them as for example it will help Grab to become a partner of Uber Eats to counter competitor Go Jeck of China. Go Jeck has grown faster than Grab in Indonesian markets in departments other than ride hailing services like digital payments food supply and massage services. The merger with Uber Eats will enable Grab to counter Go Jeck of China presently which has a lion’s share in the market of Indonesia which is the biggest market of the region according to there experts.
Uber is planning for a potential “Initial Public Offering” next year after the recent loss of $ 4.5 million according to the company authorities. The company is slowly losing ground on its home turf as well and a consolidation is the need of the hour according to the experts. In the past the company had to sell their business in Russia and China during the tenure of the former CEO of the company David Travis Kalanick and the sale of South Asian operation is the brainchild of the present CEO Khosrowshahi who took charges on September last year.
In India the company has a competition with Ola , another ride service operating company and it is continuously providing subsidized rides for it’s users to challenge Uber which currently has a 60 percent share in the market. The company authorities believe the current deal with Grab will stabilize the current turbulent situation in the company.