Uber is set to announce the sale of its Southeast Asian operations to its rival, Grab. According to a report by Bloomberg, the ride-sharing giant might make the deal official as early as tomorrow morning.
Citing sources familiar with the matter, the report also says that under the agreement, Uber will have between 25% to 30% stake in the "new combined business."
In February, Uber expressed its intent to continue investing in the the ASEAN market, despite rumors of its impending sale to Grab in the region. Land Transportation Franchising and Regulatory Board (LTFRB) member Aileen Lizada also shared with us that local Uber executives downright dismissed the possibilty of a sale to Grab.
If the company does make the deal official, Grab could see itself as the only major ride-sharing provider in the Philippines. It could also mark an end to Uber’s rocky relationship with local transportation agencies.
So, what do you think? Could Uber’s exit from the Philippine transportation scene mean disaster for the local ride-sharing industry? Or is Grab already prepared to assume the mantle? Whatever the case, it looks like all parties involved--government agencies included--will have their plates full if this deal pushes through.