Will Uber soon be bailing on its Southeast Asian division? A report from CNBC says so as the ride-sharing company is said to have already prepared to sell their unit to Singapore based competitor, Grab. Should this move happen, it would be similar to what Uber did with Didi Chuxing in China when they sold a 20-percent ownership to the local business back in 2016.
The move to sell some of Uber's ownership in the region might also play well for the ride-sharing company, should the deal push through. For those not in the know, Uber reportedly experienced a $4.5 billion loss in 2017 in their push to dominate the ride-sharing industry. However, they have slowly narrowed their loss in the fourth quarter of last year. Selling their Southeast Asian division would help the company reduce costs for its planned initial public offering (IPO) as soon as next year says CNBC sources.
Currently, Grab operates in most countries in Southeast Asia, having presence in over 100 cities in Indonesia, Malaysia, Vietnam, Thailand, Singapore and the Philippines among others. They claim to have a 95-percent market share in the region; providing private car, taxi, motorbike and car pooling services.
In the report, there was no mention as to how much of Uber's stake in their Southeast Asian division will be sold for to Grab. Whether Uber will sell the division completely or just sell a large percent stake is still uncertain.