If a new report is to be believed, ride-hailing service Uber might be thinking about moving out of the Southeast Asian market. The company is believed to be considering a sale of its Southeast Asian business to Grab, a regional ride-hailing rival that has been given Uber a very tough time in this market.

CNBC reports, citing two sources familiar with the matter, that Uber is gearing up to sell its Southeast Asia business to Grab in exchange for a stake in Grab. It’s said that Uber is looking for a “sizable stake” in the company.

The report does mention that a deal has not yet been reached between the two parties and it’s also uncertain how long it might take before a deal can be clinched. If Uber does end up doing this, it would be a repeat of what it did in China back in 2016.

Uber sold its division in China to local rival Didi in exchange for a 20 percent stake in the company. Uber also merged its local business with Yandex’s ride-hailing service for a 37 percent stake in Russia.

Singapore-based Grab offers its ride-hailing services in more than 100 cities across Southeast Asia. Malaysia, Thailand, Vietnam, Singapore, and the Philippines. Transportation options for users include motorbikes, taxi, private car, and carpooling.

The sources say that Uber might take this step in a bid to cut down on costs as it prepares for a potential IPO as soon as next year. Uber has not yet commented on the report and neither has Grab.

Filed in Transportation. Read more about Uber.

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