Uber has agreed to sell its Southeast Asian operations to regional rival Grab, according to Reuters.
Here are four things to know about the deal.
1. Grab is bigger than Uber in the Southeast Asian markets, and under the deal, Uber will receive a 27.5 percent stake in Grab, which is valued at roughly $6 billion. Uber CEO Dara Khosrowshahi will join Grab's board.
2. The merger will especially help Grab's meal-delivery service, which will join with Uber Eats. Regional competitor Go-Jek has a strong market hold in Indonesia — the largest economy in the region — and has quickly expanded to services beyond ride-hailing.
3. Uber invested $700 million in its Southeast Asian operations before making this deal. Company officials said they anticipate making more consolidation deals with rivals but do not think they will execute another deal in which they exchange consolidated operations for a minority stake in a rival.
4. The Grab deal is the first operations sale by Mr. Khosrowshahi, who assumed his position in September. Uber previously retreated from Chinese and Russian markets under former CEO Travis Kalanick.