A mix of concern and disappointment met Uber Technologies Inc’s [UBER.UL] deal to sell its Southeast Asian business to bigger regional rival Grab, as drivers and users of the ride-hailing firms took in the prospect of sharply reduced competition.
A passenger of Grab bike fixes her helmet next to Uber driver at Manggarai train station in Jakarta, Indonesia, March 26, 2018. REUTERS/Beawiharta
The services throughout Asia have long relied on discounts and promotions for consumers and incentives for drivers, which made for tough competition, pushing down profit margins.
Grab said the Uber acquisition accelerated its path to profitability in its core transport business, as it would become the most cost-efficient Southeast Asian platform.
While drivers were split on which of the two services offered better compensation, they generally expected fares to go up with the reduced competition.
Rennu Mahajan, who has driven a combined three-and-a-half years for both companies in Singapore, said some of her driver friends were concerned because now they would not be able to switch to the other app.
https://www.reuters.com/article/us-uber-grab-reaction/as-uber-bows-out-to-grab-drivers-and-riders-bemoan-loss-of-choice-idUSKBN1H21KP
