Grab Nabs Uber's Cash
Uber Technologies's plans to expand in southeast Asia just got a lot tougher Monday after news that one of the region's biggest investors will boost its stake in ride-sharing rival Grab.
Japan's SoftBank (SFTBY) , which is led by Japanese billionaire Masayoshi Son, and China's Didi Chuxing will invest around $2 billion in Grab, the company said, which also hopes to raise an additional $500 million to cap the biggest-ever venture capital fund raising in the region's history. Once completed, the new cash will value Singapore-based GrabTaxi Holdings Pte Ltd. at just over $6 billion.
"Grab is using technology to address transportation and payments, some of the biggest challenges present in southeast Asia," Son said in a statement.
Uber, which has already retreated from markets in China and Russia, now faces a much-stronger rival in Grab as well as an established player in Go-Jek, which dominates the ride-sharing market in Indonesia thanks in part to a $550 million investment from private equity groups KKR & Co. and Warburg Pincus LLC.
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