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Grab Just Bought Out Uber's Southeast Asian Business

March 27, 2018

Published on Mar 27, 2018

Image source: Reuters

Ride-hailing firm Uber has sold its Southeast Asian business to rival Grab, which will integrate Uber's ridesharing and food delivery business in the region into Grab's platform. 

As part of the transaction, Uber would get a 27.5 per cent stake in the combined business. 

But what does this mean for existing Uber passengers? Here's what we know so far:

Uber's ride-hailing service to be consolidated into the Grab app

Grab said that nothing will change in the immediate term and operations will continue as usual, as they work to combine the Uber and Grab platforms. It mentioned that passengers "can expect better service with more drivers and transport options available in one app".

What this means is that Uber passengers will soon have to use the Grab app to hail a ride within Southeast Asia countries, which includes Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Uber service to be discontinued in Southeast Asia from April 8

Uber services will be available in Southeast Asia for two more weeks until April 8, 2018. This is to facilitate the onboarding of Uber drivers on to the Grab platform.

Grab also told its passengers to download and use the Grab app to book rides for travelling needs in Southeast Asia.

What this means is that Uber will only be available in other regions outside of Southeast Asia.

Fare structure remains unchanged

Grab told AsiaOne that there will be no change to its fare structure following the merger. Fares for GrabCar and JustGrab will continue to be calculated based on a base distance, with a dynamic surcharge considering factors such as demand and supply, traffic conditions, and estimated time taken to complete the journey.

Passengers who choose the taxi options will continue to pay by metered fares that are set by the taxi companies. Fares for other services like GrabHitch or GrabShuttle will remain at the usual fixed amounts.

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