Grab plans to buy Ride hailing giant Uber’s Southeast Asia unit. The news comes from a CNBC report. Grab is Singapore-based ridesharing company.
According to CNBC, Uber “in exchange” will get a “sizable stake in the company, according to two sources with knowledge of the matter”.
However, the deal is yet prospective one and its time is uncertain.
Uber & Grab
Grab happens to be the largest ridesharing company in Southeast Asia region. The Singaporean company operates its business in more than 100 cities in Southeast Asia. A southeast Asian version of Uber is the market leader in the region. As of 2017, it has almost 95% market share.
Uber & Didi
This isn’t the first time Uber is doing such a business exchange. The global market leader sold its business n China to Didi in exchange for getting 20% of Didi’s ownership. Like, Uber adopted the same strategy in Russia.
SoftBank & Ride-hailing
Interestingly, if the deal goes successfully, Japanese SoftBank’s hand will be stronger in the ride-hailing industry. Moreover, Softbank is the Gandalf of the ride-sharing industry. Softbank has its investment in America’s Uber, China’s Didi, Singapore’s Grab, India’s Ola, and Brazil’s 99. In fact, there’s hearsay that Softbank approaches to Lyft as well.
However, local companies playing well in local markets. And it makes the business more difficult particularly, for the companies like Uber. Even in countries like Bangladesh, Uber encounters strong local competitors like Pathao.