Mar 26, 2018

Uber sells Southeast Asia business to rival Grab

After weeks of rumors, ride-hailing company Grab has announced it's acquiring Uber's Southeast Asian business, including its UberEats operations. In exchange, Uber will receive a 27.5% stake in Grab reflecting the companies' respective market shares.

Why it matters: This is Uber's latest move to shed operations in regions where it's not the leader (and frankly has no chance of becoming) and is losing a lot of money. It's done the same in China and Russia. This is also not surprising given new-CEO Dara Khosrowshahi's plans to take the company public in the next year or two.

More: Neither companies is disclosing the value of Uber's stake, but Axios is told that it's safely north of $2 billion and likely more. Moreover, Khosrowshahi is joining Grab's board of directors as part of the deal.

Now, all eyes will be on India, another large market where Uber wants to compete. According to a source familiar with its business, Uber has at least half of the market in the country, so it's not likely to retreat.

Grab advantage: The deal likely boosts Grab's ability to compete with Go-Jek, another ride-hailing company in the region, backed by KKR and Alphabet.

Go deeper: Khosrowshahi's recent comments at the Goldman Sachs' tech conference, just a day after Uber released its financials for 2017.

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U.S. coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios. This graphic includes "probable deaths" that New York City began reporting on April 14.

House Democrats asked Agriculture Secretary Sonny Perdue for more information Thursday on how the agency chose which companies to award $1.2 billion in food assistance contracts.

By the numbers: More than 98,400 people have died from COVID-19 and over 1.6 million have tested positive in the U.S. Over 379,100 Americans have recovered and more than 14.6 million tests have been conducted.

Pentagon watchdog sidelined by Trump resigns

Fine testiying before the Senate Judiciary Committee in 2017. Photo: Drew Angerer/Getty Images

Glenn Fine, the Pentagon's principal deputy inspector general, submitted his resignation on Tuesday.

Why it matters: President Trump removed Fine as the Pentagon's acting inspector general in April 7 after a group of independent federal watchdogs selected him to lead the Pandemic Response Accountability Committee, which was set up to oversee the rollout of the $2 trillion coronavirus relief bill.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 2:30 p.m. ET: 5,547,523 — Total deaths: 348,040 — Total recoveries — 2,269,422Map.
  2. U.S.: Total confirmed cases as of 2:30 p.m. ET: 1,671,728 — Total deaths: 98,493 — Total recoveries: 379,157 — Total tested: 14,604,942Map.
  3. Trump administration: Mike Pence's press secretary returns to work.
  4. States: New York reports lowest number of new coronavirus deaths since March.
  5. Public health: The final data for remdesivir is in, and its benefits are rather limited.
  6. Space: How to virtually watch SpaceX's historic crewed launch.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 14 mins ago - Politics & Policy