Transport Network Company (TNC) Uber Technologies Inc. sold its Southeast Asia operations to Grab in an acquisition deal over the weekend.
Under the agreement, Uber will take a 27.5 percent stake in the Southeast Asian market and Uber CEO Dara Khosrowshahi will join Grab’s board. The acquisition also includes Uber’s food delivery services, UberEats.
The deal marks Uber’s second withdrawal from the Asian market.
“Today’s acquisition marks the beginning of a new era. The combined business is the leader in platform and cost efficiency in the region,” Grab CEO Anthony Tan said in a statement.
The acquisition cuts Uber’s losses after recording a $4.5 billion dollar loss last year. The discounts and promotions used by Uber users also dwindled profit margins.
Moreover, Uber also faced competition at home and in Asia alongside the regulatory crackdown in Europe.
Grab started as a taxi-hailing application in Kuala Lumpur in 2012. Recent records from CB Insights show the company’s current value is at $6 billion.
The company offers ride-hailing services in Singapore, Indonesia, the Philippines, Malaysia, Thailand, Vietnam, Myanmar and Cambodia.
