Uber agrees to sell its South East Asian business arm to rival Grab marking its second retreat from an Asian market

Ride-hailing firm **Uber Technologies Inc** has agreed to sell its Southeast Asian business to bigger regional rival **Grab** , the firms said in a statement on Monday, marking the US company’s second retreat from an Asian market. [caption id=“attachment_4405469” align=“alignleft” width=“380”] A taxi passes Uber and Grab offices in Singapore. Image: Reuters[/caption] The deal marks the industry’s first big consolidation in Southeast Asia, home to about 640 million people, and puts pressure on Indonesia’s Go-Jek, which is backed by Alphabet Inc’s Google and China’s Tencent Holdings Ltd. As part of the transaction, Uber will take a 27.5 percent stake in the Southeast Asian company and Uber CEO Dara Khosrowshahi will join Grab’s board. Expectations of consolidation in Asia’s fiercely competitive ride-hailing industry were stoked earlier this year when Japan’s SoftBank Group Corp made a multi-billion dollar investment in Uber. SoftBank is also one of the main investors in several other big ride-hailing firms including Grab, China’s Didi Chuxing, and India’s Ola. Ride-hailing companies throughout Asia have relied heavily on discounts and promotions, driving down profit margins. Uber, which is preparing for a potential initial public offering in 2019, lost $4.5 billion last year and is facing fierce competition at home and in Asia, as well as a regulatory crackdown in Europe. “It will help us double down on our plans for growth as we invest heavily in our products and technology,” Khosrowshahi said in a statement. Grab said it will take over Uber’s operations and assets in eight countries in the region, and will expand its food delivery services.