Uber sold its ride-hail business in eight Southeast Asian countries to Singapore rival Grab, in exchange for a 27.5% stake in Grab and a board seat for Uber Chief Executive Dara Khosrowshahi. Meanwhile, Uber’s Singaporean leasing business, called Lion City Rentals (LCR), appears set to close April 8.
The move comes on the heels of a $474 million deal, inked in December 2017, that formed a joint venture with Singapore-based multinational taxi company ComfortDelGro, which took over operations and maintenance of 14,000 Uber vehicles in the region.
While Uber failed to comment by press time, the Lion City Rentals Facebook page indicates that drivers can join Grab’s platform once their LCR contracts expire.
Rideshare analyst Harry Campbell, for one, told AFN the sale to Grab is “a smart move,” particularly as Uber preps for its IPO next year.
Uber’s leasing exits — in Singapore, and in the U.S. last year — are bringing the ride-hail company back to its “core focus and core product” of North America, and aligning its business for profitability, said Campbell, founder of The Rideshare Guy blog. In fact, Campbell predicts that Uber may shut down operations in India, too. “They have a strong local competitor in [India] with Ola,” he said. “I wouldn’t be surprised if they exit, because market dynamics are the same [as in Southeast Asia.]”
Source : AutoFinanceNews
