Uber to sell its SEA-based ride-sharing business unit to Grab
Category: #world  By Saipriya Iyer  Date: 2018-02-17
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Uber to sell its SEA-based ride-sharing business unit to Grab

In a major tide of events witnessed across the ride-sharing industry, Uber Technologies Inc., one of the most pivotal car-pooling & transportation network firms based in the U.S., has decided to sell its business in Southeast Asia to Grab, a Singapore-based firm offering ride-hailing & logistics services. According to TechCrunch, the deal includes the sale of Uber’s car-sharing business  in return for a share in the Grab Sources claim that it is the third such deal, where Uber has agreed to sell its business in exchange for shares from the buying firm.

Earlier in August 2016, the firm had sold its car-pooling business to Didi Chuxing in China in exchange for nearly 18% of proprietorship in Didi. In the fourth quarter of 2017, Uber had merged its regional car-sharing business with the ride hailing business of Yandex for 37% of ownership rights. Experts claim that the Uber’s key objective with regards to selling its business to other firms is to raise sufficient capital for next year’s IPO. At the Goldman Sachs Internet and Technology conference held on 13th February 2018, the company’s CEO had stated that he wants the firm to earn huge profits by investing in developing regions as well as new technologies such as self-driving cars.

Industry analysts are of the view that the purchase deal between Uber and Grab will also supplement SoftBank’s business objective of gaining maximum control over the global ride-sharing industry. Earlier this year, the Japanese multinational conglomerate holding firm purchased 15% of Uber’s shares from its owners. Softbank’s investment in the ride-hailing firm will reportedly enable it to combine some of its ride-sharing units in Asia.

Experts forecast that this current agreement will help in improving Uber’s reputation & financial position in the car-sharing industry. For the record, Uber had suffered a loss of over USD 4.5 million in 2017 as compared to its loss during the previous years.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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