Uber Technologies Inc. negotiated the sale of the main part of operations to its competitor in Southeast Asia – Grab Inc., Interfax-Ukraine reports quoting The Wall Street Journal.
The latter, quoting its own sources, states that under the pending deal, Uber will receive approximately 30-percent share in Grab. However, the parties continue to work on the terms of agreement, and, as the result, Uber’s share in Grab may be less significant, one of the sources noted.
The deal may somehow weaken pressure over Uber’s finance against the background of the plans of Uber’s CEO Dara Khosrowshahi to hold IPO in the company in 2019. In 2017, the company fixed the net loss, amounting to USD 4.46 bln with proceeds, totaling USD 7.36 bln.
The sources note that Uber annually spent around USD 200 mln, trying to drive out Grab and one more Asian competitor PT Go-Jek Indonesia, which recently attracted funds, amounting to over 1 bln dollars, including KKR&Co. and Tencent Holdings Ltd.
During the last month’s visit to New Delhi, Khosrowshahi stated that the company will continue to struggle for the market share in Southeast Asia, despite the large losses in this region. Previously, he reported that Uber invested hundreds of millions dollars in the region, noting the hard competition with local companies.
It is noted that while Uber faces difficulties in relations with regulators around the world, Grab closely cooperates with authorities and better understands local traditions. The number of active clients of Grab in the region is also larger than in Uber.