Grab Merges with Uber in Southeast Asia
- Largest-ever deal of its kind in Southeast Asia
- Grab to embark on next phase of growth to build Southeast Asia’s leading online-to-offline (O2O) mobile platform
- To expand GrabFood towards becoming the region’s #1 provider of food delivery services
SINGAPORE AND SAN FRANCISCO – March 26, 2018 – Grab today announced that it has acquired Uber’s Southeast Asia operations. This deal is the largest-ever of its kind in Southeast Asia. Grab will integrate Uber’s ridesharing and food delivery business in the region into Grab’s existing multi-modal transportation and fintech platform. With the combined business, Grab will drive towards becoming the #1 online-to-offline (O2O) mobile platform in Southeast Asia and a major player in food delivery.
Grab provides the fundamental services Southeast Asia consumers care the most about: safe and affordable transport, food and package delivery, mobile payments and financial services.
Grab will extend its leadership as the most cost-efficient Southeast Asian platform, as it takes 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.
Anthony Tan, Group CEO and Co-founder, Grab 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. Today’s acquisition marks the beginning of a new era. The combined business is the leader in platform and cost efficiency in the region. Together with Uber, we are now in an even better position to fulfil our promise to outserve our customers. Their trust in us as a transport brand allows us to look towards the next step as a company: improving people’s lives through food, payments and financial services.”
Tan Hooi Ling, Co-founder, Grab 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 be another great use case to drive the continued adoption of GrabPay mobile wallet and support our growing financial services platform.”
“This deal is a testament to Uber’s exceptional growth across Southeast Asia over the last five years. It will help us double down on our plans for growth as we invest heavily in our products and technology to create the best customer experience on the planet. We’re excited to take this step with Anthony and his entire team at Grab, and look forward to Grab’s future in Southeast Asia,” said Dara Khosrowshahi, CEO of Uber.
Grab’s new era of growth: Building SEA’s leading O2O mobile platform
- Food delivery: Grab will rapidly expand its existing GrabFood businesses in Indonesia and Thailand to two more countries – Singapore and Malaysia – following the integration of the Uber Eats business. GrabFood will be available across all major Southeast Asian countries in the first half of 2018.
- Transportation: Grab will grow its core transport offering to include more localised transport services and new mobility solutions, in partnership with other transport providers and automakers. Grab will also collaborate with governments and public transport operators to link public transport services and create seamless and integrated multi-modal commuter experiences. The recently announced GrabCycle marketplace for shared bicycles and personal mobility devices, and GrabShuttle Plus for on-demand bus routes are pilots toward this vision.
- Payments and financial services: Grab will continue to enhance and expand its suite of offerings under Grab Financial, including mobile payments, micro-financing, insurance and other financial services for millions of underserved and unbanked consumers, micro-entrepreneurs and small businesses in the region. GrabPay as a mobile wallet will be available across all major Southeast Asian countries by the end of the year.
To minimise disruption, Grab and Uber are working together to 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 stability for Uber drivers, who can find out how to sign-up to drive with Grab here. Uber Eats will run until the end of May, after which Uber delivery and restaurant partners will move to the GrabFood platform.
Grab is one of the most frequently used O2O mobile platforms in Southeast Asia. Over 5 million people use the combined platform daily. Today, the Grab app has been downloaded onto over 90 million mobile devices, giving passengers access to over 5 million drivers and agents, the region’s largest land transportation fleet and agent network. Grab is in 195 cities in eight Southeast Asian countries and offers the widest range of on-demand transport services including private cars, motorbikes, taxis, and carpooling services, in addition to food and package delivery services. Grab Financial increases access to cashless services for millions of Grab customers across Southeast Asia and connects the underserved and unbanked population to financial services.
Click here for statement from Grab Malaysia’s Country Head, Sean Goh.
Hughes Hubbard & Reed LLP acted as lead counsel to Grab in this transaction.
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