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Uber to buy stake in Southeast Asian rival Grab

Uber app.
The Uber app. Photo: Jaap Arriens / NurPhoto via Getty Images

Uber has agreed to purchase a 25 to 30% stake in Grab, a Singapore-based ride-hailing rival, in exchange for Grab taking over "in the eight markets in Southeast Asia where it is operational," TechCrunch reports.

Why it matters: The deal allows Uber to retain some influence in the Southeast Asian market after losing market share to Grab there over the past year with the company distracted by internal issues at home. The deal is similar to Uber's deals to exit the Chinese and Russian markets over the past couple of years with local rivals Didi and Yandex.