China: Uber nears deal with Grab to pull back in south-east Asia

Grab and Uber, two of the world’s biggest car-booking apps, are close to signing a deal that would result in the US company pulling back in south-east Asia in return for a more than 20% stake in its Asian rival, said two people familiar with the matter.

The move has been under discussion for months and comes just weeks after Japanese technology conglomerate SoftBank, Uber’s biggest investor which also holds a 30% stake in Grab, called on the Silicon Valley company to focus on core markets. It also echoes a similar agreement Uber struck in 2016 with Didi Chuxing, the Chinese company, which led it to quit China in return for its investors getting a 20per cent stake in its fierce competitor.

For Grab co-founder and Chief Executive Officer Anthony Tan, the truce would bring to an end a bruising battle for leadership in Southeast Asia’s fast-growing ride-hailing market. The companies have been locked in a struggle for control of as many cities as possible across Southeast Asia, home to 620 million people.

Japan’s SoftBank became the largest shareholder in Uber in January, setting offspeculation that it would encourage ride-hailing startups in its portfolio to cut back on competing with each other. SoftBank also holds stakes in China’s Didi and Ola, the India startup vying with Uber for leadership in that market.

Full Content: Bloomberg

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