Ride-hailing service Uber Technologies will sell its business in Southeast Asia to regional rival Grab, the firm said in a statement early Monday, ceding the region's 640 million potential riders to others.
Grab is a rapidly expanding ride-sharing, food delivery and financial services provider in the region. Uber said it would take a 27.5 percent stake in Grab as part of the deal, according to Reuters.
The sale comes two years after Uber merged its operations in China with rival Didi Chuxing, when it also took a share in that company.
Margins are notoriously low on ride-sharing services in Asia, where such firms rely heavily on discounts and promotions, according to Reuters.
"It will help us double down on our plans for growth as we invest heavily in our products and technology," Uber CEO Dara Khosrowshahi said in a statement.