SINGAPORE (Feb 17): Uber Technologies is seeking to sell its Southeast Asia ride-hailing business to Grab in return for a substantial stake in the company, according to CNBC.
But no deal has been reached so far, the report said.
Grab provides private car, motorbike, taxi and carpooling services in more than 100 cities across Southeast Asia.
The company said it has garnered 95% market share in taxi ride-hailing when it announced plans to raise more than US$2.5 billion ($3.3 billion) from SoftBank and other investors last year.
CNBC said the move is similar to Uber's strategy in China, where the company sold its operation to Didi for 20% ownership, and in Russia, where the company merged its local business with Yandex's ride-hailing business for a 37% stake.
The sale could also help Uber cut back its costs in preparation for an IPO as soon as next year, said the sources, who asked not to be named because the discussions are confidential.
In the event of some kind of consolidation between Grab and Uber, overall fares could increase, said The Edge Singapore in its article "Is the end of metered taxi fares good for cabbies and commuters?" in Issue 816 (Feb 5).
This was what happened following the merger of Didi and Uber.
See: Is the end of metered taxi fares good for cabbies and commuters?
