Uber is selling its south-east Asian ride-hailing and food delivery business to bigger regional rival Grab, as its seeks to cut losses ahead of a potential stock market flotation next year.
The move marks the US company’s third major retreat overseas, following its exit from China in 2016 and Russia last year.
Uber lost $4.5bn (£3.2bn) last year and is facing fierce competition at home and in Asia, as well as a regulatory crackdown in Europe. In November, the Uber chief executive, Dara Khosrowshahi, admitted that the Asian operations were not going to be “profitable any time soon”.
Explaining the deal with Grab, Khosrowshahi told employees in an email that was published on Uber’s blog: “One of the potential dangers of our global strategy is that we take on too many battles across too many fronts and with too many competitors.”