Grab is acquiring Uber’s operations and assets in South-east Asia including Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
The move marks Uber’s further retreat from international operations, following the sale of its China business to local rival Didi Chuxing in 2016 and Russian business to Yandex last year.
As part of the deal, Uber will take a 27.5 per cent stake in Grab and Uber CEO Dara Khosrowshahi will join Grab’s board.
The online-to-offline company will integrate Uber’s ridesharing and food delivery business in the region into Grab’s existing multi-modal transportation and fintech platform.
Anthony Tan, Grab’s group CEO and co-founder, said the acquisition “marks the beginning of a new era” and the merger will drive better cost efficiency and services for customers in the region.
However, the Competition Commission of Singapore (CSC) stated that it has not received notification of the merger, reminding that along with Singapore’s competition laws, it prohibits mergers that may result in a “substantial lessening of competition”, the Singapore’s Straits Times reported.
CSS indicated it could “require the merger to be unwound or modified” to prevent an erosion of competition”.
In a statement, Grab said it believes the acquisition will add to vibrant and competitive ride-hailing, delivery and transportation spaces, and stated it will make a merger notification to CCS.