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Uber deal will have 'zero issues' despite watchdog reservations, says Grab CEO

Anti-competition watchdogs in Malaysia and the Philippines are keeping a close eye on the deal that will see Grab sweep up Uber in South-east Asia

Shafi Musaddique
Tuesday 03 April 2018 11:08 BST
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Uber will own a sizeable stake in Grab as part of the deal
Uber will own a sizeable stake in Grab as part of the deal (Reuters)

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Grab chief executive Anthony Tan is confident that the ride-hailing firm’s deal with Uber will be completed with “zero issues”.

Mr Tan said on Tuesday that he believes regulators will not oppose Grab's plan to buy Uber’s ride-hailing and food delivery business in South-east Asia, despite Malaysian authorities warning that they would monitor Grab for potential "anti-competitive" behaviour in the region.

The Philippines competition watchdog has also voiced its reservations, calling the tie-up a “virtual duopoly”.

Speaking to the BBC, Mr Tan said: “The number one thing that any regulator is concerned about is how do we make sure that we as, a leader do not set a bad example, do not take advantage.

"So we are out there, we are very visible, to say 'Look, we will not predatory price, we will not take advantage of our drivers'."

The deal will see Uber own a 27.5 per cent stake in Grab.

Grab currently operates in eight countries, growing in popularity in Singapore, Malaysia, Indonesia and Vietnam.

The plans were announced last week on the back of Uber selling its China arm to Chinese rival Didi Chuxing.

Uber is pulling out of regional markets where it faced stiff competition as chief executive Dara Khosrowshahi aims to consolidate the business ahead of an IPO set for 2019.

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