It was first reported a couple of weeks ago that Uber might soon bow out of the Southeast Asian market. The company was reportedly in talks with local ride-hailing service Grab to sell its division in return for a stake in the company. According to a new report by Bloomberg, Uber has reached a deal with Grab and is going to announce it as early as tomorrow morning.
Bloomberg reports that Uber has reached an agreement with local rival Grab to sell its Southeast Asia business in return for a stake in the company. The deal would see Uber bowing out of yet another market after struggling to compete with a local competitor.
The report adds that this deal will include all of Uber’s operations in Southeast Asia as well as Uber Eats. The company will get a stake between 25 and 30 percent in the new combined entity. Both Uber and Grab declined to comment on the report today but the scribe maintains that this deal will likely be officially announced tomorrow.
This isn’t the first time that Uber has inked a deal like this. The company sold its entire business in China to Didi Chuxing in 2016 for a 17.5 percent stake in the local competitor. The company later did the same in Russia where the business was sold to native internet giant Yandex.