How Will Grab's Acquisition Of Uber's SEA Business Affect Drivers And Riders In Malaysia?
After weeks of speculation, Grab confirmed in a statement earlier this morning, 26 March, that it has officially acquired Uber's business in Southeast Asia for an undisclosed amount
Grab, which started as a taxi-hailing app, will take over Uber's operations and assets in Singapore, Malaysia, Cambodia, Indonesia, Myanmar, the Philippines, Thailand, and Vietnam.
"First of all, as a fellow Malaysian, I believe that this development is a major milestone for all of us," said Grab Malaysia’s Country Head Sean Goh in a media statement.
In return, Uber will receive a 27.5% stake in Grab and its chief executive officer, Dara Khosrowshahi will hold a seat on the board of the Singapore-based company.
But what does this deal mean for existing users and drivers from both Grab and Uber? Here's what we know so far.
For Uber drivers
The Uber app will continue to run for two weeks until 8 April 2018 during which Grab will help Uber drivers in transitioning to Grab's platform.
The Uber Partner app will continue to be operational until 8 April 2018 as well. Existing Uber drivers are also recommended to sign up as soon as possible if they wish to join the Grab platform.
Through its FAQ page, Grab added that existing Uber drivers will be notified to transfer all related information, including their trip history and ratings, during the onboarding process.
Uber will continue to attend to all outstanding support requests and queries during the transition period.
For Grab drivers
It's business as usual for Grab drivers.
Grab said the deal will not affect its existing pool of drivers as all benefits and incentives will remain the same.
They also assured that the addition of Uber drivers onto the platform has no effect on the earnings of Grab drivers.
There will also be no alterations to Grab’s current ride-sharing offerings. For example, taxi drivers will still have the option of using the GrabTaxi option to accept metered fares.
For Uber and Grab users
As mentioned above, the Uber service will be available for two weeks until 8 April 2018.
There will be no change to its fare structure following the merger. Fares for GrabCar and JustGrab will continue to be calculated based on a base distance, with a dynamic surcharge considering factors such as demand and supply, traffic conditions, and estimated time taken to complete the journey.
Account information of Uber users will still be retained. Uber users can still view past trips and ratings in the Uber app. The account will remain active and can be used in any country outside Southeast Asia where Uber operates.
Data that was previously shared with Uber, except for payment information, will be transferred to Grab. But it will not be visible in the Grab app.
What about UberEats?
UberEats will become GrabFood by the end of May. While the transition process is taking place, UberEats will continue to operate as usual.
Prices that were on UberEats will remain the same on GrabFood.
More FAQs and info about the acquisition here
The deal marks Uber's latest retreat from international markets following the company's sale of its operations in China and Russia: