Under the agreement, Grab will acquire all of Uber's operations in a region of 620 million people, including food delivery service UberEats. Grab has officially announced it has acquired Uber's Southeast Asia operations, which is claimed to be the largest-ever deal of its kind in the region.
Uber CEO Dana Khosrowshahi will also join Grab's board of directors as part of the acquisition.
While SoftBank and Didi are big investors in both companies, the deal considered to be huge for Grab, which has about 5 million drivers in 195 cities, recording 90 million downloads of its app and now valued at $6 billion.
But Grab, which operates in 195 cities in 8 Southeast Asian countries, became the dominant force in ride-hailing, leaving its troubled USA rival struggling.
Off-late Uber has been linked to various controversies that led the then-40-year-old CEO Travis Kalanick quit the company.
The long-rumored takeover of Uber Technologies Inc.'s Southeast Asian business by Grab Taxi Pte. "We're excited to take this step with Anthony and his entire team at Grab, and look forward to Grab's future in Southeast Asia".
It remains to be seen if the same will happen in Southeast Asia, but one thing is for sure - investors will want it to stop pouring money into the market to compete, so expect fewer incentives for both drivers and passengers.
Uber is giving another two weeks time to the existing drivers to move onto the Grab platform, while the Uber Eats app will continue till end of May. While Grab takes over Uber's operation in Philippines, Myanmar, Malaysia, Cambodia, Thailand, Singapore, Vietnam, and Indonesia.
The deal also signals a retreat from the market for Uber, which has struggled to gain market dominance over Grab.?
Grab, for the uninitiated, is a Singapore-headquartered company with north of $4 billion in funding and notable backers that include SoftBank, Hyundai, and China's Didi Chuxing. In China, Uber handed over its business to Didi in exchange for 20 per cent ownership. Uber has been trying to fight too many battles on too many fronts, according to CEO Dara Khosrowshahi, and through consolidating with rival businesses, it can retain a strategic investment in lucrative markets while focusing its own resources elsewhere.