GRAB AIMS TO DOUBLE REVENUE IN 2019
S-E Asia’s most valuable startup on track to raise US$3b of funding by year-end, says co-founder
SINGAPORE’S Grab outlined ambitious fundraising plans and predicted that sales will double next year, adding to evidence that Southeast Asia’s most valuable startup is expanding well beyond its roots as a ride-haling app while intensifying a rivalry with Indonesia’s Go-Jek.
Revenue will double to US$2 billion (RM8.28 billion) next year as it integrates the acquisition of Uber Technologies Inc’s regional business and delves deeper into new areas from bike-sharing to digital payments.
It was on track to raise US$3 billion of funding before the end of this year, said co-founder Tan Hooi Ling at Bloomberg’s Sooner Than You Think technology summit, here. That includes US$1 billion from Toyota Motor Corp, the Japanese carmaker’s biggest investment in ride-hailing to date.
Grab is expanding rapidly throughout Southeast Asia, home to more than 600 million people, to become the region’s largest transportation platform and leverage its size after the Uber deal.
Its funding turns up the heat on Go-Jek, which has announced plans to expand beyond its home turf and enter Singapore, Thailand, Vietnam and the Philippines. Now it was exploring forays into fields as diverse as grocery delivery and finance to healthcare, said Tan.
“There’s more greenfield than in any other region in the world because technology hasn’t been able to truly shape the lives of the Southeast Asian region yet,” she said.
“The second big area is to increase our operational presence in Indonesia.”
Six-year-old Grab is moving fast against Jakarta-based GoJek, which started out as a motorbike taxi-booking service in 2015 before tacking on more than a dozen consumer services that lets users pay bills, order food and buy movie tickets.
Tan said Grab would make a big push in Indonesia, where revenue had tripled so far this year and it had a 65 per cent share in the ride-hailing market.
Food delivery GrabFood, currently available in 30 cities, would be expanded to more than 130 cities by the end of this year, added Tan.
Backed by investors such as Japan’s SoftBank Group Corp and China’s Didi Chuxing, Grab is using its capital to expand both geographically and businesswise.
The Uber deal cemented Grab’s grip on ride-hailing in the region, especially in its home market. That has been accompanied by increasing complaints, with users bemoaning prices, delays and lapses in customer service.
Tan said some of the issues revolve around integrating its biggest ever acquisition.
“Hindsight is always 20/20. To be honest, we did make mistakes. We know that,” said Tan. “As we were learning things, we were making changes on the go. We have and will be continuing to make investments to learn.”