Grab is expecting to raise 2.5 Billion USD which is approximately 3.4 billion SGD, that’s truckloads of money!
This would be the single largest corporate financing in ASEAN markets.
Enabling Grab to strengthen its position and Grabpay payments platform in the region.
2 Billion USD of funding are coming from already existing investor Didi Chuxing (China) and Softbank Group (Japan). The other 0.5 Billion would be raised by Grab. This would make the ride sharing company valued at 6 Billion USD at about 10% of Uber Valuation of 70 Billion USD.
Grab also shared their impressive ASEAN market share – it has 95 per cent in third-party taxi-hailing and 71 per cent in private hire vehicle hailing. Its mobile platform offer riders options in private hire car, motorcycle, taxi and carpooling services across seven countries in the region, with estimated 1.1 million drivers. In the ASEAN region Grab and Go jek is proving to be strong competitor to Uber whose funding are WW and only a portion comes to this region.
The company is looking into transforming itself into more than just a Private Hire ride sharing company and expand its revenue base to mainly financial technology that also offers loans, online money transfer.
Firstlane- point of view for Singapore Market
Uber vs Grab would continue to be a hot topic on which platform allows the driver to earn better with more rides and incentives level.
We do not foresee a significant improvement in the incentive level as the driver base has already been built up and conditioned to it. However, the company would still require to continue to motivate its driver to maintain the supply of vehicles on the road, we expect to see them creating more layers of driver motivation- Example would be Grab Roadstars 2.0 that make drivers compete with one another for the most trips. Ultimately Drivers are motivated by money they can earn on the road, that is a very important factor to attract drivers onto the platform, so do not be surprised if you see news like how a Grabcar driver managed to earn 7.4K
On the rider side, Grab would continue to explore various transport options like already launched, Grabshuttle, Grabhitch and Justgrab Taxi to cater to riders different needs. Not forgetting the promotion code, riders are also conditioned to it now and would continue to demand it. This round of funding would definitely helps to strengthen the company position