If you haven’t already heard, Grab announced that it has acquired Uber’s Southeast Asia operations, the largest-ever deal of its kind in Southeast Asia. Uber’s ridesharing and food delivery business in the region will be integrated into Grab’s existing multi-modal transportation and platform.
With the combined business, Grab will drive towards becoming the No.1 online-to-offline (O2O) mobile platform in Southeast Asia and a major player in food delivery.
The deal will also see Grab taking over Uber’s operations and assets in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. As part of the acquisition, Uber will take a 27.5% stake in Grab and Uber CEO Dara Khosrowshahi will join Grab’s board. Group CEO and Co-founder of Grab, Anthony Tan said, “We are humbled that a company born in SEA has built one of the largest platforms that millions of consumers use daily and provides income opportunities to over 5 million people.”
Co-founder of Grab Tan Hooi Ling said, “We will rapidly and efficiently expand GrabFood into all major SEA countries in the next quarter. We’re going to create more value for our growing ecosystem of consumers, drivers, agents – and now merchants and delivery partners. GrabFood will also help drive the application of GrabPay mobile wallet and support our growing financial services platform.”
Grab and Uber will promptly migrate Uber drivers and riders, Uber Eats customers, merchant partners and delivery partners to the Grab platform. The Uber app will continue to operate for two weeks to ensure a smooth transition for Uber drivers. Uber Eats will run until the end of May, after which Uber delivery and restaurant partners will move to the GrabFood platform.