The winner behind the sale of Uber to Grab in Southeast Asia

Grab has started to dominate the ride-hailing industry across Southeast Asia. Uber Technology Inc., once the major ride-hailing company, has announced to sell its operations in Southeast Asia to Grab as to withdraw from the war of fierce local rival. It is just part of the reasons that Uber wished to withdraw the operations from Southeast Asia; the main reason is that Uber is changing their plan and emphasize their operations towards its core market. 

The relationships between Softbank and Uber

In the late last year, 2017, Uber announced that Softbank would be their long-anticipated investor. After a month of formalities, Softbank successfully became part of Uber and took up to 2 chairs in the Board of Uber and stood 14% of stakes. Softbank plays a consolidating role that to help Uber in maximizing their profit. In order to maximize their profit, Softbank held Uber to re-think the operations in Southeast Asia, thus, eventually, Uber agreed to sell its operations and took up to 27.5% of stakes in Grab

The King of ride-hailing industry

There are many of ride-hailing companies, however, none of them is the King of this industry but Softbank does which paralleled with the co-founder of CB Insight, Softbank is the real king of the ride-hailing industry. Not only does Softbank is a major investor in Uber, it also invested in several taxi/ride-hailing companies, such as India's Ola, China's Didi Chu Xing, and Grab car. Because of the war of local rival, Softbank proposed to withdraw the operations of Uber in Southeast Asia and makes the market less comparative. Therefore, Grab would be able to maximize its profit in Southeast Asia; meanwhile, Uber could mainly emphasize on its core market such as United States, Australia, New Zealand and Latin America and so on.

So, after the sale of Uber to Grab, as a major investor in the ride-hailing industry, the power of Softbank cannot be underestimated. We can't say it dictates or monopolize the industry but undoubtedly the impact that it can make is definitely something would influence the industry. 

P.S. if you feel like you are one of the companies that have possibilities in growing, I would suggest looking for Softbank as the money that they would put in definitely will add some market value.  

Like our page for more.