Uber has agreed to sell its business in Southeast Asia to local rival Grab

Grab is taking over Uber’s ride-hailing business in eight countries and Uber Eats, which is currently present in three. In exchange, Uber gets a 27.5 percent stake in Grab and Uber CEO Dara Khosrowshahi will join Grab’s board.

Southeast Asia is seen as a growth market thanks to a population of over 600 million people, many of whom are coming online for the first time, but it is also considered a loss-making market for new industries like ride-sharing — particularly when two companies are locked in a subsidies war.

Grab car, taxi hailing app in South Asia

This consolidation has been strongly rumored since SoftBank, an early investor in Grab, backed Uber via an investment in January. See full story