Asian firm raises $2B to fend off Uber
SINGAPORE — Grab, the leading provider of ridehailing services in Southeast Asia, said Monday it raised $2 billion from Japan’s SoftBank Group Corp. and China’s Didi Chuxing, and it expects to receive another $500 million from new and existing backers.
The money will help Grab, which already dominates the region, defend its turf against Uber Technologies Inc. in one of the San Francisco company’s most important global markets after retreats from China and Russia.
Uber’s rivals are piling on a company in crisis. While a series of scandals at Uber culminated in the ouster of Chief Executive Officer Travis Kalanick in June, its competitors in China, India, Brazil and Singapore have raised a total of about $9 billion to accelerate their expansions. The money, primarily from Masayoshi Son’s SoftBank, jeopardizes Uber’s push for global dominance and its $69 billion valuation.
Uber sold its business in China to Didi after a fierce battle that saw each company burning through more than a billion dollars a year at one point as they fought for drivers and riders with rich subsidies. Uber negotiated a similar move in Russia this month as it seeks to narrow losses.