Below are emails sent by Uber CEO Dara Khosrowshahi to Uber staff about our merger with Grab in Southeast Asia.
See below for some news out of Southeast Asia. I want to thank the team there for everything they’ve built over the last five years—this deal is a testament to their hard work.
It is fair to ask whether consolidation is now the strategy of the day, given this is the third deal of its kind, from China to Russia and now Southeast Asia. The answer is no.
One of the potential dangers of our global strategy is that we take on too many battles across too many fronts and with too many competitors. This transaction now puts us in a position to compete with real focus and weight in the core markets where we operate, while giving us valuable and growing equity stakes in a number of big and important markets where we don’t.
While M&A will always be an important value-creation tool for our company, going forward we will be focused on organic growth—growth that comes from building the best products, services and technology in the world, and re-building our brand into the mobility brand that riders, cities and drivers want to support and partner with.
I wanted to let you know that we have reached an agreement to combine our business in Southeast Asia with Grab.
In exchange, Uber will get a 27.5% stake in the combined company. Around 500 colleagues across the region will transition to Grab, and over the coming weeks we will help our customers move to Grab’s apps.
Our journey in Southeast Asia started in Singapore almost five years ago. I’m conscious that much of the hard work happened before I arrived, and I want to recognize the operations you have built across these eight countries. After investing $700 million in the region, we will hold a stake worth several billion dollars, and strategic ownership in what we believe will be the winner in an important global region. That’s all because of you and what you have done.
These are never easy decisions and I know this will mean a big change for you and your families, but I believe that combining forces with Grab is the right thing to do for Uber for the long term.
Our growth and success in Southeast Asia would not have been possible without this amazing team. Your efforts to bring the benefits of ridesharing to millions of people across Singapore, Malaysia, Indonesia, the Philippines, Thailand, Vietnam, Cambodia and Myanmar have changed lives and transformed cities for the better—and this transaction doesn’t change that history.
I’m sure you will have lots of questions, so our local leaders will be holding roundtables with everyone across the region today. Thanks again for your dedication and all you’ve done for Uber.