E-hailing service update: The effect of Grab-Uber Merger in SEA

How to be Grabcar driver at Klang Valley & Negeri Sembilan?

E-hailing service has growth very fast recently, there two big service provider within SEA, South-east Asia, The Grab and Uber E-hailing service. Both of them almost take most of the percentage from Former Taxi Service Market.

On a one fine day, Grab has acquired Uber’s operations in SEA, South-east Asia, that is including the Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, in the largest-ever deal of its kind in the region, each country.


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As part of the deal, Grab will be integrating Uber’s ride-sharing business into its existing platforms, and Uber will take a 27.5% stake in Grab, the Malaysia-based company announced on Monday (March 26) in a media release.

Uber drivers and riders will be migrated to the Grab platform, as the two companies vowed to work together to ensure a quick transition.

The merger between Grab and Uber definitely cause a bigger impact to Taxi Service Market. This might bring Taxi Service Market to an end.


Taken from nst.com.my
A taxi association has expressed concern over the Uber-Grab merger in Southeast Asia, saying that it might hasten the demise of the industry in the country.

Persatuan Pengusaha Teksi Bumiputera Malaysia (Perbumi) president Datuk Mohd Alias Abdul said only 15 per cent of the estimated 30,000 taxi drivers in Klang Valley “are still doing okay”.

Persatuan Pengusaha Teksi Bumiputera Malaysia (Perbumi) president Datuk Mohd Alias Abdul. NST FILE PIC
“The e-hailing industry had taken a heavy toll on the traditional taxi industry.

“The traditional taxi industry takes the hit as it can’t raise the needed resources to compete,” he told the New Straits Times.


Anyhow, There will be no change to its fare structure following the merger. Fares for GrabCar and JustGrab will continue to be calculated based on a base distance, with a dynamic surcharge considering factors such as demand and supply, traffic conditions, and estimated time taken to complete the journey.

Account information of Uber users will still be retained. Uber users can still view past trips and ratings in the Uber app. The account will remain active and can be used in any country outside Southeast Asia where Uber operates.

Data that was previously shared with Uber, except for payment information, will be transferred to Grab. But it will not be visible in the Grab app.

When will Uber cease to operate here?

Despite the proposal, Grab will still shut down the Uber app on April 8.

What will happen to the Uber app?

Users can still view their past trips in ratings in the Uber app. The account remains active and can be used in countries outside South-east Asia, where Uber operates. Data that was previously shared with Uber, except for payment information, will be transferred to Grab. But it will not be visible in the Grab app.

What will happen to Uber drivers?

Since the acquisition was announced on March 26, Uber drivers have been signing up with Grab.

It said it will honour contracts which Uber’s drivers signed with Uber-owned car leasing firm Lion City Rentals until these agreements expire.

While the contracts required them to drive exclusively for Uber’s platform, Grab said these drivers will be able to accept Grab bookings.

After the contracts expire, drivers can opt to rent a car from one of Grab’s fleet partners.

How will the merger affect existing Grab users?

Grab has asked users to bear with it if there is a service disruption during the transition period as it tries to get Uber drivers onto its platform.

Related post:

How to be Grabcar driver at Kuala Lumpur & Negeri Sembilan?

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