Uber exits South-East Asia market with sale to Singapore-based rival

Second retreat from an Asian market

In a move set to mark the US company’s second retreat from an Asian market, Uber has agreed to sell its South-East Asian operations to Singapore-based rival Grab, it said today.

As part of the deal, Uber will take a 27.5 per cent stake in Singapore-based Grab and Uber’s CEO, Dara Khosrowshahi, will join Grab’s board.

“It will help us double down on our plans for growth as we invest heavily in our products and technology,” Khosrowshahi said.

“It was really a very independent decision by both companies,” Grab President Ming Maa told Reuters, adding that SoftBank CEO Masayoshi Son was “highly supportive”.

Uber will take a 27.5 percent stake in Singapore-based Grab and Uber CEO Dara Khosrowshahi will join Grab’s board. Grab was last valued at an estimated $6 billion.

“It will help us double down on our plans for growth as we invest heavily in our products and technology,” Khosrowshahi said in a statement.

Uber, which is preparing for a potential initial public offering in 2019, lost $4.5bn last year and is facing fierce competition at home and in Asia, as well as a regulatory crackdown in Europe.

Uber had previously retreated from China and Russia.