Uber Can't Afford to Be an Ugly American Abroad

Anybody who commutes via ride-share in one of Southeast Asia's traffic-choked cities knows that Uber Technologies Inc. has always been an also-ran in the fast-growing region. Compared with Grab Taxi Holdings Pte. Ltd., the dominant ride-sharing company in Southeast Asia, it consistently had fewer cars available and was perpetually behind in offering localized services. When Uber announced Monday that it was selling its Southeast Asian operations to Grab, it merely confirmed the worst-kept secret in Southeast Asian business.

Uber, however, might be holding on to an even bigger secret. As data sharing and online privacy become key concerns for governments worldwide, Uber and its competitors will be forced to invest in the locals rather than compete against them. Multinational ride-sharing companies like Uber will have to become regional players expert in local preferences, and in managing the governments who regulate them.