Grab To Buy Over Uber’s Southeast Asian Operations
It’s finally happened. After months of speculation, we finally have confirmation that Grab will merge with Uber’s operations in the Southeast Asian market. The news was announced on Mon (26 Mar) across news outlets and Grab’s own website.
As a result, all of Uber’s properties will be taken over by Grab, and that includes Uber’s drivers, customer base, and also Uber Eats’ riders, customers, and merchant partners.
And changes will come soon, with Uber app only continuing to operate for two more weeks, while Uber Eats will only be around until the end of May.
The Art Of The Deal
With the deal, Grab will take over Uber’s presence in 8 countries: Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. In return, Uber will own 27.5% of Grab, and Uber’s CEO Dara Khosrowshahi will join Grab’s board.
This 27.5% share is significant, as according to Tech In Asia, it is representative of Uber’s share in the ride-sharing market.
From Uber Eats To Grabfood
Meanwhile, Uber Eats will be integrated into Grab’s own food delivery service, GrabFood. Grab’s press release says that GrabFood will be expanding to “all major Southeast Asian countries” within the first half of 2018. Uber Eats will still be around until the “end of May”, and all Uber delivery and restaurant partners will move to GrabFood.
Which means that Grab will all of a sudden become a major player in the food delivery game. With no presence in the region apart from Indonesia and Thailand, we’ll all have to start adding GrabFood as a food delivery option alongside Foodpanda, Deliveroo, and Honestbee.
What Does This Means For Customers?
While we can be expected to move to the Grab and GrabFood apps without much of an issue, perhaps the biggest impact for customers is that there will likely be no more promo codes. For a brief, glorious period, we could get discounts of up to $5 per ride, but those days will soon be over.
In addition, the power of choice will also now disappear. Comparing fares between apps will longer be a thing, as Grab will be the only choice.
However, those worried that they would have to pay more for Grab rides will have nothing to worry about. Grab told Asiaone that their fare structure will remain unchanged with the merger.
Meanwhile, Uber’s 49% ownership of Lion City Rental will likely be transferred to Grab.
Changes Are A-Coming
So in summary, the changes will be coming fast.
Uber’s ride hailing service will only last till 8 Apr, while Uber Eats will run till the end of May.
Featured Image via Grab and Uber