Earlier this morning, Singapore-based Grab declared that it acquired Uber’s Southeast Asia operations. And that specifies, Southeast Asia’s largest acquisition deal was signed over this weekend. Grab has also confirmed the news in their official Twitter handle –
Uber was operating within the Singapore region for nearly last five years. Now Grab currently plans to integrate the latter’s ride-sharing and food delivery business (Uber Eats) in eight countries within the region – Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam – into its existing multi-modal transportation and fintech platform.
Grab is committed to cooperate with native regulators in regard to the acquisition. The deal puts Grab in absolute control of Southeast Asia’s ride-sharing market, however it doesn’t believe that the deal that it’s line of work a merger.
Looks like Uber has already started sending notifications asking users to move to Grab. Twitteratis are posting numerous messages all over the internet like the one below –
More than five hundred Uber workers in Singapore are placed on paid leave within the wake of the company’s South-East Asian operations being noninheritable by rival ride-hailing firm Grab. According to sources among Uber, the company’s Guoco Tower headquarters was cleared out on Monday (26 March) and workers there have been apparently told to vacate the premises by 4pm. As per Yahoo News, 50 workers are going to be redeployed to the Uber workplace at Mapletree Anson. The remaining workers were placed on paid leave for consecutive 3 months as Grab finds new roles for them.
This is not the first time that Uber has withdrawn from a market within the face of bruising competition and mounting losses. In 2016, Uber had sold off its China business to a contestant and partner, Didi Chuxing, taking a stake within the latter. The subsequent year, it agreed to merge its ride-hailing business in Russia with Yandex, an area search-engine leader that additionally runs a preferred taxi-booking app.
Bloomberg Asia has covered the same story on how Uber is losing their market share from each of the Asian countries
In India, once again, SoftBank is that the largest capitalist in Uber’s main rival, Ola. Competition between the 2 apps has become ridiculous in recent times. Ride-hailing drivers recently mobilized a strike using WhatsApp message teams. As they stayed home, Mumbai’s traffic was blissfully lightweight for a minimum of 2 days last week. Such is that the extent of oversupply.
Since Softbank is putting their money into both Ola & Uber now, and their constant rivalry is eating out each others market share, lets see how far Uber can continue their ride sharing services in India. Will Ola be the next one to grab Uber? Or, will it be the other way around? Till then keep enjoying your Uber rides !!!!