You've probably heard or read by now about Grab's acquisition of Uber's Southeast Asian operations. We don't know yet for sure what kind of long-term effects this move will have. With no obvious competitor, Grab now has the market to itself. All we can do right now is speculate and hope for a positive outcome.
Grab is welcoming its new partner with open arms, announcing that the Uber app will run until April 8, while Uber Eats will operate until the end of May. After that, operations will move to the Grab and GrabFood platforms. The company's goal with the combined business is to become the top "online-to-offline mobile platform in Southeast Asia and a major player in food delivery."
Uber CEO Dara Khosrowshahi also sent an email to Uber staff regarding the merger, which the ride-sharing company published in a blog post. While the memo is aimed at reassuring Uber's staff, it does provide the rest of us with a bit of insight into the company's mindset moving forward. Below is an excerpt:
"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 rebuilding our brand into the mobility brand that riders, cities and drivers want to support and partner with."
What do you guys thing about the merger? Will a consolidated ride-sharing body, instead of two companies competing against each other, be better focused and provide us with better service? Let us know your thoughts below.