ZCZC
BCN-23
SINGAPORE-BUSINESS-TRANSPORT-GRAB
Grab raises $2 bn to fight ride-hailing competition
SINGAPORE, Aug 2, 2018 (BSS/AFP) – Ride-hailing firm Grab said on Thursday
it has raised $2 billion from investors to expand its offerings including
electronic payments, food delivery and courier services as it fights fierce
competition in the fast-growing sector.
Around half of the funds came from Japanese car giant Toyota, which
announced last month it was pumping $1 billion into Grab, Southeast Asia’s
dominant ride-share company.
Grab said a “significant portion” of the proceeds would go to developing
operations in Indonesia, where it has partnered with local firm Ovo to offer
what it said was the country’s most widely accepted mobile payments system.
The announcement comes after Grab’s regional rival, Indonesian ride-
hailing app Go-Jek, said in May it was investing $500 million to expand into
Vietnam, Thailand, Singapore and the Philippines.
Singapore-based Grab, which operates in eight countries, launched an on-
demand grocery delivery service in Jakarta last month.
Southeast Asia’s ride-hailing market is expected to be worth $20 billion
by 2025, according to research by Google and Singapore investment vehicle
Temasek.
However, Grab’s agreement to buy US giant Uber’s Southeast Asian business
this year has run into trouble, with Singapore’s anti-monopoly watchdog
calling for changes to the deal and threatening to overturn it.
Grab last week disputed the watchdog’s finding that the buyout infringed
competition rules, but vowed it would continue to cooperate with the ongoing
review.
In return for selling its Southeast Asian ride-hailing and food
operations, Uber received a 27.5 percent stake in Grab.
Since the merger, several new players, including India’s Jugnoo and
Singapore-based Ryde, have entered the city-state’s ride-hailing market.
BSS/AFP/HR/1035