{"id":3046,"date":"2018-03-29T16:49:10","date_gmt":"2018-03-29T15:49:10","guid":{"rendered":"https:\/\/anythingforhire.com\/news\/?p=3046"},"modified":"2018-04-05T15:03:51","modified_gmt":"2018-04-05T14:03:51","slug":"uber-sell-south-east-asian-operations-grab","status":"publish","type":"post","link":"https:\/\/anythingforhire.com\/news\/uber-sell-south-east-asian-operations-grab\/","title":{"rendered":"Uber sell South East Asian operations to Grab"},"content":{"rendered":"

Over the past few months, we have seen Uber<\/a> make some rather huge announcements, eager to tighten their belts and operate a clean, flourishing business. Expected to float on the Stock Exchange next year, Uber<\/a> has this week made yet another surprise move, selling its South East Asian operations.<\/p>\n

In a plea to cut losses, Uber<\/a> sold their ride-hailing app and food delivery business to regional competitor; Grab. Having left China back in 2016 and recently exited from Russia, it appears it is a significant time of change for the technology company.<\/p>\n

Cutting ties with Asia almost completely, Uber<\/a>’s CEO recently said that ventures on the continent were not looking \u201cprofitable any time soon\u201d.<\/p>\n

As part of the sale, Uber<\/a> will now take a 27.5% stake in Asia-based Grab; with Uber<\/a>’s CEO, Dara Khosrowshahi, also sitting on the business’ board.<\/p>\n

According to recent reports, Uber<\/a> lost a substantial $4.5bn (\u00a33.2bn) last year as a result of too much direct competition in Europe and across the globe. Enhanced by tough regulatory crackdowns on the business, removing side projects and distractions certainly makes sense.<\/p>\n

Announcing details of the deal in a blog, the CEO reiterated this point:<\/p>\n

\u201cOne 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.\u201d<\/p>\n

However, many analysts and researchers are placing this move down to Uber<\/a>’s overaggressive nature, suggesting that the company ran before it could walk when it came to global expansion.<\/p>\n

One Singapore-based researcher has been very vocal on the subject. In a statement, Corrine Png of Crucial Perspective said:<\/p>\n

\u201cUber<\/a> is seeking an IPO but that might be delayed depending on whether Khosrowshahi is able to address Uber<\/a>\u2019s cash burn problem as well as countering rival Lyft\u2019s renewed strength in the US.<\/p>\n

\u201cUber<\/a> has been expanding overaggressively and assumed that it would be able to outspend Yandex in Russia, Didi Chuxing in China and Grab in south-east Asia but it turns out that Uber<\/a>\u2019s rivals were equally well-resourced. Uber<\/a> would have been better off simply investing in Yandex, Didi Chuxing and Grab from the start.\u201d<\/p>\n

A step in the right direction for Grab<\/h3>\n

However, this is an immensely positive step forward for Grab, with the company’s Co-Founder, Anthony Tan, saying the following:<\/p>\n

\u201cWe are humbled that a company born in SEA has built one of the largest platforms that millions of consumers use daily and provides income opportunities to over 5 million people. Today\u2019s acquisition marks the beginning of a new era. The combined business is the leader in platform and cost efficiency in the region. Together with Uber<\/a>, we are now in an even better position to fulfil our promise to outserve our customers. Their trust in us as a transport brand allows us to look towards the next step as a company: improving people\u2019s lives through food, payments and financial services.”<\/p>\n

Let us know what you think, is this a good meeting of minds?<\/p>\n","protected":false},"excerpt":{"rendered":"

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