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As days go by, we Malaysians can see one clear trend – Grab winning over Uber, but Uber is not giving up without a fight. Uber knows about it, too. Things are about to change, as Grab and Uber are now striking a truce, as Bloomberg reports.

The details are as not made public but its concept is made clear. Grab will buy out Uber’s operation in certain regions of Southeast Asia, and Uber will hold a stake in Grab. Uber is estimated to have at most 20% of stake in Grab.

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This is not the first time Uber has struck such a deal, as they’ve done a similar truce with Didi Chuxing in China back in 2016.

Grab Acquire Uber

Quoting Zafar Momin, an associate professor Nanyang Technological University in Singapore, says that “Uber has been more about duplicating whatever they do in other parts of the world, and adapting a little bit,” and adds that “[Grab] understands the local context better.”

We’re not sure how Uber and/or Grab will change once the deal has been confirmed, but things are bound to change in the near future. Perhaps a change in price? Only time will tell.

[UPDATE] Grab is now officially merged with Uber!

For all of Uber’s Southeast Asia operations, they’re now handled by Grab only. With this partnership, there are a few keypoints to what is going to happen:

  • Grab is acquiring Uber’s rideshare and food delivery businesses in Southeast Asia, and integrating them into Grab’s leading transportation and fintech platform.
  • In exchange, Uber will receive a 27.5% stake in Grab, which is reflective of the companies’ respective market shares.
  • The acquisition reflects Grab’s transport market leadership in Southeast Asia – and Grab will also take over the Uber Eats operations to immediately become a major player in food delivery services.
  • The GrabFood service will expand from two existing countries to all major Southeast Asian countries by next quarter. This will be another great use case to drive continued adoption of the GrabPay mobile wallet and support Grab’s growing Financial Services platform.
  • The acquisition accelerates Grab’s path to profitability in its core transport business, as it’s the most cost efficient Southeast Asian platform.

Now, I wonder what will happen to those Uber users accounts, drivers, and the app itself. How will they merge together?

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