Uber to sell Southeast Asian business to rival Grab

Uber chief Dara Khosrowshahi has been pushing to clean up the company’s financials in preparations for an initial public offering next year

The ride-hailing company sold its operations in China to Didi Chuxing, the country's biggest ride-sharing provider, in July 2016.

The Competition Commission of Singapore (CCS) said on Monday in response to queries from BT: "The parties have stated in their media release that they intend to file a notification of the transaction to CCS". Last year, it followed suit in Russian Federation and the Caucasus through a merger with Yandex's ride-hailing business.

Grab will take control of Uber operations in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Another source said Uber would acquire a 25 to 30 percent stake in Singapore-based Grab, valuing the entire business at US$6 billion, the same valuation it commanded in its most recent capital raising.

Grab will purchase Uber's ride-hailing and food delivery operations in the region in a deal valued at several billion dollars, according to a person familiar with the acquisition who spoke on the condition of anonymity because they were not authorized to speak publicly.

Uber has been struggling to stem increasing losses, which amounted to $4.5 billion previous year, as it also tries to tamp-down corporate scandals and an internal shakeup that replaced its CEO, Travis Kalanick.

Singapore-based Grab is now Southeast Asia's biggest ride-hailing firm.

Grab will continue to enhance and expand its suite of offerings under Grab Financial, including mobile payments, micro-financing, insurance and other financial services for millions of underserved and unbanked consumers, micro-entrepreneurs and small businesses in the region. The merging of Uber Eats will further give Grab an advantage over Go-Jek, which also has a vast range of services apart from ride hailing.

Since befitting Uber's CEO in September, Dara Khosrowshahi has been navigating to assembling the company's commercial prior to an organized inceptive public offering anticipating next year.

Uber has raised more than $20 billion in funding since its inception, and it is one of the most valuable technology startups in the world.

But Khosrowshahi indicated that Uber does not have plans to quit India or other major markets anytime soon. Meanwhile the sale is Uber's latest withdrawal from a market where it had faced fierce competition, as new chief executive Dara Khosrowshahi seeks to stem huge losses and move past a series of scandals.

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