MANILA – Ride-sharing firm Grab on Monday said its "largest-ever deal" in acquiring competitor Uber's Southeast Asia operation will drive the growth of the platform and its expansion plans in the region.
The combined platform will drive Grab's business towards becoming the number 1 online-to-offline (020) mobile platform in Southeast Asia with focus on food delivery, transportation, and payments and financial service, Grab said in a statement.
The merger will help launch Grab’s food delivery service called GrabFood in all major southeast Asian countries in the next quarter, said Grab Co-founder said Tan Hooi Ling.
“Today’s acquisition marks the beginning of a new era. The combined business is the leader in platform and cost efficiency in the region. Together with Uber, we are now in an even better position to fulfill our promise to outserve our customers," Anthony Tan, Grab's Group CEO and Co-founder, said.
Grab also plans to enhance other services in southeast Asia including its marketplace for shared bicycles GrabCycle, service for on-demand bus routes called GrabShuttle, and its mobile wallet GrabPay.
In the Philippines, the deal will provide a larger fleet of drivers on the platform, which translates to more jobs for partner drivers, Grab Philippines country head Brian Cu said.
“More passengers are expected to use Grab, which will mean more jobs, less waiting time, and ultimately higher earning potential," Cu said.
Cu said a larger fleet means transportation needs will be met faster. Passengers will get to enjoy shorter waiting time and more affordable rates.
Grab will take control of Uber operations in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Uber will take a 27.5 percent stake in Grab and Uber's combined platform in the region, Uber CEO Dara Khosrowshahi said.