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Monday, 26 March 2018


UBER is a food delivery and transportation network company headquartered in San Francisco, California with operations of 633 cities worldwide. Being a famous transportation company, it has very strong very strong reputation among the people all over the world.

It was rumored since last week about the decision of UBER presence in Southeast in near future and after a week UBER has sold its business in Southeast Asia to Singapore company GRAB.

This deal will prove to be game changing deal for UBER and will net UBER a 27.5% share in GRAB. On the other hand, UBER's CEO Dara Khosrowshahi will also join GRAB's board. In my opinion, it is the biggest purchase of one business enterprise by another in Southeast Asian region.

GRAB, being a strong competitor of UBER, also gained a strong reputation among the Southeast Asian people and it will take over UBER's operations in eight countries which are: COMBODIA, INDONESIA, MALAYSIA, PHILIPPINES, VIETNAM, THAILAND, MYANMAR.

As mentioned above, UBER is also a food delivery company and hence, GRAB, after purchasing UBER, will also include facility provided by UBER (known as UberEats) in three of those eight countries and the changed name of UberEats will be GrabFood. Don't forget that Grab is presently valued at $6 billion and already has 90 million app downloads on the smartphones which is huge. It is worth mentioning that GRAB has over 5 million drivers across 195 cities on its platform.

Looking at the current situation, UBER is on the verge of becoming extinct in Asia and the only country where it's still alive to some extent is China & India. Even after standing on the verge of extinction in Asia, India is still proving out to be one of the biggest markets for UBER.

With this many deal at the present times, many UBER customers are thinking about the service of UBER in their respective country. For those honest and loyal customers of UBER, here's what UBER CEO Dara Khosrowshahi said:

It is fair to ask whether consolidation is now the strategy of the day, given this is the third deal of its kind, from China to Russia and now Southeast Asia. The answer is no.

One of the potential dangers of our global strategy is that we take on too many battles across too many fronts and with too many competitors. This transaction now puts us in a position to compete with real focus and weight in the core markets where we operate, while giving us valuable and growing equity stakes in a number of big and important markets where we don’t.

While M&A will always be an important value-creation tool for our company, going forward we will be focused on organic growth—growth that comes from building the best products, services and technology in the world, and re-building our brand into the mobility brand that riders, cities and drivers want to support and partner with.

With GRAB expansion in the Southeast Asian countries like Indonesia, it has to compete with likes of Go-Jerks and Ola (though Ola is strong in India). Recently, OLA emerged as a very tough competitor for UBER, specially in INDIA and being new to Indian and Indonesian customers, GRAB will take sometime to gain a loyal fanbase. It'll be interesting to see the evolution of Grab in South Asian countries.

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A tech and gadget lover who is passionate about writing. Life Goals: To shout from the Mountain Peak: Yes, I did it.


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