The news of Grab’s intention to take over Uber operations in Southeast Asia has been terendus since the beginning of 2018. Had not sounded, now the rumors getting louder.
Two sources in saying, Uber wants to collect money from sales operations in Southeast Asia. That way, Uber can hold initial share alias initial public offering (IPO) with success next year.
Since under the leadership of CEO Dara Khosrowshahi, Uber’s focus is indeed more to increase profit and stability of the company. The reason, the last report called Uber losses jumped 61 percent throughout 2017 to 4.5 billion US dollars or equivalent to Rp 60 trillion.
This can not be separated from the bad reputation of Uber following insistent events while still being captain Travis Kalanick. If this continues, Uber’s plans for an IPO and raising more fresh funds will be delayed.
Uber also launched several strategies, one of which is partnering with several strong local competitors in several countries. For example selling its majority business to Didi Chuxing in China and Yandex in Russia.
Grab is said to be taking advantage of Uber’s new strategy to assert its dominance in Southeast Asia. Moreover, Grab and Uber are both funded SoftBank so it can be spelled out mediation smoothly.
In a press conference in San Francisco, USA, Dara Khosrowshahi said, competition with local players is difficult. Inevitably he must take the path to embrace the local players rather than the power struggle eroded.
“If we compete with the same dollar as a local player, like paying a driver for the same price and racking up the same passengers, we tend to win. We have better brands, technologies and networks, “he said.
“But for some markets, like China and Russia, this does not work. If the only reason we survive in the market is to waste money, this is not the right reason, “he said as compiled from CNBC.
This indicates that Uber is beginning to accept that not all markets can be conquered. Perhaps so in Southeast Asia. However, there has been no official statement from Uber and Grab regarding this consolidation. Let’s wait.