It’s hard to imagine that this is actually happening. Just two weeks ago, Grab and Uber dropped a bombshell, announcing that the two ride-sharing platforms were merging operations in Southeast Asia, effectively booting the Uber brand out of the scene. In exchange, Uber will take a 27.5 percent stake in Grab.
The deal is the biggest of its kind in Southeast Asia and will see Grab integrating Uber’s ride-sharing and food delivery business in the region. Grab will take over Uber’s operations and assets in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Time to move on
Since the epic announcement, Uber and Grab has been prompting Uber users and driver partners to migrate to Grab. Today, in fact, is the last day the Uber app will work in SEA. If you haven’t already, download the Grab app for Android and iOS, and continue your ride-share journey.
Uber Eats, on the other hand, will run until the end of May, after which the service and restaurant partners will move to the GrabFood platform. GrabFood is slated for an entry in the Malaysia and Singapore markets in May.
With the acquisition of Uber’s SEA operations, Grab looks to become the #1 online-to-offline (O2O) mobile platform in Southeast Asia and a major player in the food delivery segment. Aside from ride-sharing and food delivery, Grab will also grow its transport offerings to include localised transport services and mobility solutions like GrabCycle and GrabShuttle Plus.
Grab also has a hand in financial services and will continue to expand its offerings under Grab Financial. This includes mobile payments, micro-financing, insurance and more. Its mobile wallet GrabPay is set to be available across all major SEA countries by end of the year.
Over 5 million people across 195 cities in Southeast Asia use Grab on a daily basis, with app downloads topping 90 million.
Uber’s exit has raised concerns about a Grab monopoly. The homegrown startup, however, thinks the merger will effectively create a greater concentration of jobs and available drivers, hence shorter wait times and faster pick ups.
Alternatively, consumers can opt to try out new player MyCar which currently serves the Klang Valley with around 57,000 cars. Or if you dare, you can take a taxi.