SINGAPORE: Ride-hailing firm Uber has agreed to sell its Southeast Asian business to the region’s bigger rival Grab, a source with direct knowledge of the matter said on Sunday, in what would be the US company’s second retreat from Asia.
As part of the transaction, Uber would get a stake of as much as 30 percent in the combined business, the source said. He did not want to be identified as the deal is not public yet.
A multi-billion dollar investment in Uber earlier this year by Japan’s SoftBank Group, already one of Grab’s main investors, had stoked expectations that Uber would consolidate its Southeast Asian business with Grab.
The source said Uber and Grab are expected to announce the deal as early as Monday. Uber declined comment and Grab was not immediately available for a comment.