Do you think that the 2 ride-sharing app giants, Uber and Grab, will operate under one umbrella any time soon?
According to a report by New Tech KR Asia magazine, Grab is in talks to amass Uber’s branches in Southeast Asia.
The report, citing sources aware of the matter, said the alleged acquisition is an element of Grab’s efforts to tighten control over Southeast Asia’s rapidly growing shared transportation sector.
KR Asia is an extension of 36 KR, the most important technology medium in China, Southeast Asia.
Backed by distinguished investors equivalent to Alibaba’s Ant Financial, Gobi Partners, Baidu Video and more, the media is amongst many staunch supporters of Greater China and Southeast Asia’s technological development.
Both Uber and Grab began operations in Singapore in 2013.
What followed were years of land grabs and competition between two ride-sharing firms in Singapore after which Southeast Asia.
While Uber arguably had a greater operational advantage early on because of its global presence, Grab made up for it by specializing in localization efforts.
For example, recognizing that a big proportion of consumers didn’t have bank cards, Grab from the start allowed payment by each money and bank cards.
Another often cited example is that Grab has actively sought to make sure that drivers are taken care of.
Another often cited example is that Grab has actively sought to make sure that drivers are taken care of.
Since many drivers are older and unfamiliar with technology, Grab often hosts one-on-one tutorials at local cafes. Poorer drivers also received subsidies for the acquisition of smartphones.
According to a Reuters report, “SoftBank will play a consolidating role” across all ride-sharing assets it has invested in, including Didi, Grab and Uber. Softbank sits on the boards of each Grab and Uber.
“It makes a lot of sense to do a deal and combine two companies in Southeast Asia,” a source near Grab told Reuters.
Any deal is prone to be much like the one Uber struck with DiDi last yr, wherein it took a stake within the Chinese company and ended its own operations, the Reuters source added.
This implies that within the event of an Uber acquisition, Uber and Grab will retain separate brands, applications and business operations, and their back-end operations will likely be merged.
Users will still have the opportunity to make use of each applications, although incentives in the shape of discount codes will now not be widely available.
Another factor motivating a possible takeover of Uber could also be funds.
Source: Vulcan Post
