The ride-hailing company Uber is taking on UberEATS and its own competitor in 2019, which could put a dent in the ride-sharing giant’s market share.
The ride services giant said Thursday it would buy a 19 percent stake in Grab, an app that provides food delivery for consumers and companies like Uber, Lyft and Airbnb.
“With Grab, Uber will have a clear and decisive edge in the grocery and dining industry,” UberEAT CEO John Zimmer said in a statement.
Grab currently operates in 22 markets across the U.S. and the U, with plans to expand to additional markets in 2019.
UberEats, which launched in 2014, has grown to $8 billion in annual revenue, and is valued at $40 billion, according to FactSet.
Grab’s app currently offers delivery to grocery stores, restaurants and other places where consumers can pick up and drop off goods.
Uber has long had an advantage over other ride-share apps in that it provides free and cheap rides to customers without requiring a credit card or using credit cards.
But Grab’s launch could be a major shift for Uber.
Grab is focused on helping companies like Airbnb and Uber operate their own delivery service, but it’s also a major competitor to Uber, which uses its own app to serve the same customers.
Grab has had a rough ride in the past.
Uber lost a series of lawsuits in the last few years against Grab over the way it handles customer orders, including claims that Grab was manipulating the app to make its delivery drivers earn more than their competitors.
The lawsuits prompted Uber to launch a program that let users keep the money in their Grab accounts for themselves, rather than going to the company to get reimbursed.
Uber was also sued in 2016 by the Federal Trade Commission over a Grab ad that appeared to promote Uber and UberEAST, the company’s service that allows consumers to book a ride for up to 24 hours before booking a reservation.
The FTC also filed suit in the case.
Grab launched in the U to compete with UberEETS and UberWINGS.
Uber recently said it would also acquire Grab in a deal that would give UberEOTS a controlling stake in the company, though UberEATING and UberEWINGS still control a majority of the app.