Singapore sources stated that Singapore based Grab is taking over the ride-sharing and food delivery operations of Uber in the region, with the California-based company to receive a 27.5% stake in the business in return. Meanwhile the sale is Uber's latest withdrawal from a market where it had faced fierce competition, as new chief executive Dara Khosrowshahi seeks to stem huge losses and move past a series of scandals.
Previously after a fierce battle, Uber sold its China operations to rival Didi Chuxing in 2016 in return for a stake, and last year the US firm merged in Russia with the taxi-hailing app of internet giant Yandex. Accordingly the deal with Grab is similar to the one struck with Didi, and ends a years long fight for market share in a region that is home to some 650 million people and an increasingly affluent middle class.
According to sources Uber is the largest firm
of its kind with a presence in more than 600 cities, but it has been rocked by
scandals and is facing fierce competition from rivals in Asia and Europe.
Moreover the Chief executive Travis Kalanick was ousted in June last year after
missteps including allegations of executive misconduct, a toxic workplace
atmosphere and potentially unethical competitive practices.
