Uber experienced a disastrous 2017, and that scandalous air has carried into its international markets. The ride-sharing company lost its operating license in London and is still contending with regulatory troubles in the rest of the U.K. In Canada, similar woes have allowed competitor Lyft to easily break into its first international voyage, all while Uber, which once spread like wildfire across the globe, appears to be in retreat.
Indeed, a developing trend suggests that Uber may be pulling back to properly focus its business (and finances) in fewer markets while regrouping itself under new leadership. That is to say, the New York Times reports that Uber is pulling entirely out of Southeast Asia and selling both its ride and food-delivery endeavors to a Singapore-based rival, Grab, before a possible “public listing.” Pulling out of a major market like this one is a significant move and signals change on the horizon:
Uber will get a 27.5 percent stake in Grab in exchange. Uber’s chief executive, Dara Khosrowshahi, will join Grab’s board. Further financial terms were not disclosed.
The détente in Southeast Asia, which is similar to deals Uber has made in China and Russia in recent years, comes at a time of larger changes at the company, based in San Francisco.
This news follows not long after Uber propped itself up by selling 20% of its shares (at a steep discount) to Japanese investor SoftBank — a move that now seems even more notable, considering that SoftBank also holds a large stake in Grab. One wonders what other strategies remain as Uber works to regain its footing, but it appears that the company wishes to focus on specific core markets rather than continuing a quest for world ride-sharing domination.
(Via New York Times)