Grab has always kept optimizing its app as per the local conditions, whereas Uber's app remained largely unchanged from the one it used in the U.S and other markets. He did not want to be identified as the deal is not public yet.
Uber's sale in Southeast Asia, where Grab claims 5 million daily users, follows several strategic deals in competitive worldwide markets.
As part of the transaction, Uber will take a 27.5 percent stake in Singapore-based Grab and Uber CEO Dara Khosrowshahi will join Grab's board. Softbank is one of the main investors of the Uber rival Grab.
The sale is Uber's latest withdrawal from a market where it had faced tough competition, as new chief executive DaraKhosrowshahi seeks to stem huge losses and move past a series of scandals. But Khosrowshahi's statement released on the company's bog reads indicates that Uber would not be willing to retreat further as they already did in China and Southeast Asia.
Waymo to buy 20000 electric SUVs for robotic ride-hailing service
The SUV is the first battery-powered vehicle for the brand, underscoring the convergence of electrification and automation. But the new SUVs from Jaguar, said Krafcik, represent the "world's first premium electric, fully self-driving vehicle ".
Following the deal, Grab said it will also expand its food delivery services "Uber Eats" apart from its cab services across eight countries.
The value of the deal, which Grab said was the largest ever acquisition by a Southeast Asian Internet company, was not disclosed. According to reports, the company suffered $4.46 billion in losses previous year, but improved over time, losing $1.1 billion in the fourth quarter, compared with $1.5 billion in the third quarter.
Chief executive and co-founder Anthony Tan, a graduate of Harvard Business School, said the Uber deal "marks the beginning of a new era" in using mobile businesses to provide an array of services. In Russia, it agreed to merge its ride-hailing business in the country with Yandex, a local search-engine leader that also runs a popular taxi-booking app.
"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 Russian Federation and now Southeast Asia". SoftBank also invested in other ride-hailing firms, such as Grab, China's Didi Chuxing, and India's Ola.