Uber sold their business in Southeast Asia-based company – Grab

The Uber announced that they have sold their business in Southeast Asia to the local company – Grab. The Singapore-based company – Grab – offers vehicles for rent and logistics services. The company has widened their business across eight countries of Southeast Asia such as Indonesia, Philippines, Vietnam, Thailand, Cambodia, Malaysia, Singapore, and Myanmar.

Grab valued the Uber’s ride-sharing business at over US$ 6 billion across the eight countries. This merger will include the business of Uber Eats which is currently present in three countries in Southeast Asia. The company will expand this business across the region within the first half of the year.

It has been confirmed that Uber will be having their 27.5 percent shares in Grab whereas, Dara Khosrowshahi the CEO of Uber will be a part of the board of directors of Grab. Both companies have the common investors like Didi and SoftBank, which are conducting the expenses and losses of both companies.

The spokesperson of Grab said that the specialized facility of Uber – ride-sharing, will be available soon. And they will shut down the Uber Eats and start the Grab Food by the end of May. The Uber have informed their customers regarding the change and closing of the app. Also, they have informed to continue their account with the app of Grab. The company said that they have reached up to the 90 million downloads and more than five million drivers.

However, the company has not declared any change in policies for the new drivers and new vehicles which are joining them after this merger. This is the main concern for the workers of Uber. The driver’s post on the social media site directs towards the concern regarding the incentives, new policies of the company. The Grab does not allow to private-hire services whereas, Uber allows to the driver to offer the vehicle on the private rental.

This deal was decided a year ago, they might have some solution on these concern and designed the new policies.