On-demand ride provider Uber has entered talks to acquire a “sizeable” stake in Singapore-based counterpart Grab in return for its Southeast Asian business, CNBC reported on Friday.
Although the companies are in negotiations, no deal has yet been reached and the timing of any such agreement is unclear, two sources with knowledge of the matter told CNBC.
Formerly known as GrabTaxi, Grab runs a ride hailing platform that operates in approximately 170 cities spanning eight Southeast Asian markets.
The company has also developed a mobile wallet system called GrabPay that enables users to pay not only for rides but also for purchases in a wide range of stores and outlets.
Grab is currently raising $2.5bn in a series G round that has so far attracted China-based ride hailing platform Didi Chuxing, telecommunications firm SoftBank and automotive manufacturers Hyundai and Toyota.
The proposed transaction would be similar to moves Uber has made in China with Didi Chuxing and Russia with Yandex Taxi.
SoftBank, which made a multibillion-dollar investment in Uber in December 2017, reportedly favours it focusing on Europe and the US, and a source told CNBC that Uber plans to cut costs in preparation for an initial public offering that could come as soon as 2019.
Grab’s had raised $1.4bn before beginning the series G round. Its existing investors include travel agency Qunar, carmaker Honda, financial services firm Tokyo Century, China Investment Corporation, Coatue Management, Tiger Global Management, GGV Capital, Hillhouse Capital Management and Vertex Ventures.