Uber is reportedly lining up the sale of its Southeast Asia business to its ride hailing rival in the region, Grab, according to a report from CNBC.
The deal – which has yet to be reached – would see Uber pick up a stake in Grab, while lowering costs as it prepares for its initial public offering (IPO), which could happen as soon as next year.
This wouldn’t be the first time that Uber has sold off its operations in Asia, having already flogged its China business to Didi Chuxing in exchange for 20 per cent ownership. It also took a similar route in Russia, where it merged with internet company Yandex’s ride hailing business for a 37 per cent stake.
The potential merger will garner a great deal of interest from Japanese tech powerhouse SoftBank, which owns stakes in both Uber and Grab. It also recently entered into a partnership with Didi to provide ride hailing platforms for the Japanese taxi industry.