Amid fierce competition, ride-hailing app Uber is reportedly selling its Southeast Asian share of the business to Grab, its Singapore-based competitor.
The deal, which was signed for an undisclosed amount, will leave Uber with a 27.5 percent stake in Grab under the agreement, according to CNN Money.
The deal also includes the sale of all of Uber’s operations in the region, including its food delivery service, Uber Eats, thus helping Grab venture into the food delivery space.
The move follows a massive investment that was made in Uber earlier this year by Japan’s SoftBank Group, who has also invested a significant share in Grab, China’s Didi Chuxing and India’s Ola.
In 2016, Uber had sold its China operations to Didi Chuxing in a landmark deal that was perceived to be the end of Uber’s vision to dominate one of the world’s largest markets. This was followed by the sale of the company’s operations in Russia in 2017 to its counterpart Yandex, in exchange for a 37 percent stake in the combined venture.
On a related note, Grab offers ride-hailing and logistics services through its app in Singapore and neighbouring Southeast Asian nations such as Malaysia, Indonesia, Philippines, Vietnam, Thailand, Myanmar, and Cambodia.