×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Grab | Uber | Asia | ride hailing

Grab Builds Financing in Fight for Car-Sharing Dominance

Grab Builds Financing in Fight for Car-Sharing Dominance
(Dreamstime)

Monday, 24 July 2017 01:05 PM

The taxi app Grab has been given an additional $2 billion in financing, revealing the intense competition among car services in Asia that have forced companies like Uber to take a back seat to rivals with extremely deep-pockets.

The latest round of funding comes from Japan's Softbank and China's top ride-hailing firm Didi Chuxing. Grab said Monday that it expects another $500 million will come from other existing and new investors. Its last announced cash injection was in September when it raised $750 million led by Softbank, whose chief executive Masayoshi Son is Japan's richest person and a self-styled tech visionary.

Grab is vying to dominate the market for car and motorbike hailing in Southeast Asia, where it competes with traditional taxis and rival apps such as Uber.

In Indonesia, the region's biggest economy and most populous country with more than 250 million people, it's in a fierce battle for customers with local app Go-Jek.

Uber lost a pricey expensive fight for control of the market in China against Didi Chuxing, forced to accept a stake in Didi as a consolation prize.

As of yet, however, none none of the apps, including Grab, are profitable. Didi Chuxing itself raised $7.3 billion in June last year.

Anthony Tan, the Malaysian co-founder of Grab and its chief executive, said the support from Softbank and Didi would help Grab build an "unassailable market lead" and also expand GrabPay, its mobile payments business.

The ride-hailing apps are popular with residents of congested Southeast Asian cities, who aside from using them for rides also find them convenient for fetching takeaway food, delivering documents and other tasks.

But they have also faced opposition, with Thailand's government trying to limit their use and taxi drivers in the Indonesian capital Jakarta staging a violent protest last year that snarled traffic for hours.

© Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


StreetTalk
The taxi app Grab has been given an additional $2 billion in financing, revealing the intense competition among car services in Asia that have forced companies like Uber to take a back seat to rivals with extremely deep-pockets.The latest round of funding comes from Japan's...
Grab, Uber, Asia, ride hailing
304
2017-05-24
Monday, 24 July 2017 01:05 PM
Newsmax Media, Inc.
Join the Newsmax Community
Register To Comment Login To Comment
Please review Community Guidelines before posting a comment.
 
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved