The plan of Uber to sell off the Southeast Asia business of the company seems to be a done deal. Some sources who are speaking to Reuters and Bloomberg have disclosed that Uber has finalised an agreement to sell the said division to Grab, its rival. The arrangement would offer to Grab all of the operations of Uber in the region (which includes UberEats) in return for a stake that is ranging between 25 to 30 percent in the combined business. Both parties have not officially confirmed the said union. However, an announcement is anticipated as soon as the 26th of March.
The said selloff will arrive less than two years after Uber sold its Chinese business to Didi Chuxing, and some months following a similar merger with Yandex in Russia. In all three of the said cases, the pattern appears to be the same: Uber is ceding control to the dominant ride-hailing business that is operating in the area in return for a share of the success of its competitor, allowing it to profit from what would have been a losing battle otherwise. Recently, Didi invested in Grab, leaving Uber with the possibility of competing against its own partner.
As it is, Uber has substantial financial incentives to offload less-than-lucrative ridesharing businesses the firm. The company has been draining cash for years and has heavily relied on funding rounds to keep it running. Sales such as this may hurt its pride. However, they could also be important to turning a profit and allowing Uber to focus on the long-term plans of the company.