The encyclopedia · Strategy & Leadership · Strategic decision · 2013–2018
Uber spent billions in Southeast Asia — then gave up and sold to Grab for a 27.5% stake
Uber spent billions competing with Grab across Southeast Asia. In 2018 it gave up, sold its operations for a 27.5% stake, and walked away from the region.
Uber · Grab · 2018-03
What happened
Uber expanded into Southeast Asia starting around 2013, entering markets including Singapore, Malaysia, Indonesia, Thailand, Vietnam, and the Philippines. The company faced a fierce competitor in Grab, a Singapore-based ride-hailing startup that had already established strong local operations. Both companies burned through hundreds of millions of dollars in subsidies to win market share.
The subsidy war was unsustainable. Uber was losing an estimated $1 billion per year globally by 2017, and its Southeast Asian operations were a significant drain. In March 2018, Uber agreed to sell its entire Southeast Asian business to Grab, receiving a 27.5% stake in the combined company. The deal marked Uber's first major retreat from an international market.
SoftBank, which was an investor in both Uber and Grab, played a key role in brokering the deal. Uber's Southeast Asian operations — including Uber Eats in Malaysia, Singapore, and Thailand — were absorbed by Grab. By 2025, Uber's stake had been diluted to 13.71%, though it remained the largest individual shareholder in Grab.
Why it happened
- Uber entered a costly subsidy war with Grab that burned through hundreds of millions of dollars, with no clear path to profitability in the region.
- Grab had deeper local knowledge, stronger relationships with regulators, and a more diversified business model that included food delivery and financial services.
- SoftBank, invested in both companies, pushed for consolidation to stop the cash burn. Uber chose to exit rather than continue funding a losing battle.
The lesson
A global leader can still lose a regional war to a local competitor with better market knowledge. Uber's billions could not buy the local relationships and regulatory expertise that Grab had built.
Aftermath
Uber's Southeast Asian operations were absorbed by Grab in March 2018. Grab used the Uber Eats assets to launch GrabFood, expanding into food delivery. Grab went public via a SPAC merger in December 2021, valued at $40 billion. Uber's 27.5% stake was diluted to 13.71% by 2025, though it remained the largest individual shareholder. The deal was Uber's first major international retreat and set a pattern for its later exits from China and other markets.
Sources
- Uber — Wikipedia
- Grab (company) — Wikipedia
- BBC News — Uber sells Southeast Asia business to Grab (March 2018 deal, SoftBank role, market exit)
- Forbes — Grab officially takes control of Uber's Southeast Asia operations (acquisition details, market impact)
- TechCrunch — Uber's global exits were worth billions (Southeast Asia sale, strategic retreat)
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