Uber’s Deal with Grab Met with Disappointment among Drivers and Riders

Published By : 27 Mar 2018 | Published By : QYRESEARCH

Uber’s deal with Grab, its business rival, to sell out its business in Southeast Asia has met with a mix of concerns and disappointment, as drivers and commuters took in the prospect of steeply reduced competition. The rise hailing services across Asia have depended on discounts and promotions for customers and incentives for drivers since long. This, as a result, has made the competition tough, pushing profit margins noticeably down. Grab, on the other hand, has stated that the acquisitions of Uber has smoothed its path to success and profitability in its core transport business, as this deal will pave its way to become the most cost-effective platform for ride hailing in Southeast Asia.

While drivers have different take on which of the two services provided better compensation, they expected the fares to go up, in general, with the decreased competition. Drivers are also concerned because now they won’t be able to switch to the other app in between. Grab, on its Singapore website, it stated that passengers could expect quality service with the increased number of drivers and travel options available on one app. In addition, the company also mentioned that the fares will not go up. For drivers, it stated that incentives and benefit structure will remain the same. According to App Annie, a mobile data analytics firm, Grab was placed on fifth position among the top apps on the basis of monthly active commuters in Singapore in the last year against Uber’s seventh position.

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