Grab closes $2b funding round, doubles down on Indonesia

[Vanhelsing]

Anthony Tan. Photographer: Ore Huiying/Bloomberg

It seems to be all about growth with these ride-hailing businesses and that makes sense, but at what point do these companies start turning a profit for their investors? I read somewhere Uber, for example, had burned through $10 billion dollars in nine years without as yet making a dime.

By Ka Kay Lum
August 2, 2018

Southeast Asia’s ride-hailing major Grab has announced another round of major funding, $2 billion this time, it said in a statement today.

Grab emphasized that a significant portion of the funds raised will be used to sustain its investments in Indonesia, the home ground of rival Go-Jek. Since Uber’s exit from Southeast Asia, Grab has been in the race to further deepen its presence

Co-founded by Anthony Tan and Tan Hooi Ling, Grab claims that it is on track to achieve $1 billion in revenue by end of this year – the first startup in Southeast Asia to achieve such a revenue record.

Grab said that more than half of over 7.1 million micro-entrepreneurs on its platform resides in Indonesia.

....it said its food delivery service, GrabFood, has expanded to 28 Indonesian cities, with its gross merchandise value almost quadrupling in 1H2018.

https://www.dealstreetasia.com/stories/grab-funding-1billion-103820/

 

[El_Goretto]

"micro-entrepreneurs" .. Please!

 

[Zavia]

It seems to be all about growth with these ride-hailing businesses and that makes sense, but at what point do these companies start turning a profit for their investors? I read somewhere Uber, for example, had burned through $10 billion dollars in nine years without as yet making a dime.


https://www.dealstreetasia.com/stories/grab-funding-1billion-103820/

I guess one can look at amazon for an example? :
https://qz.com/1341589/amazon-can-make-loads-of-money-when-it-actually-feels-like-it/
Or whatsapp:
https://www.forbes.com/sites/parmyolson/2014/10/06/facebook-closes-19-billion-whatsapp-deal/

Theres various exit options, up to the management.

 

[dafluff]

What I don't understand is how they spend that much money? They're a 1 app company. So basically they're just using that money to undercut each other (sometimes at the expense of their drivers), to see who survives?

Well Uber already exited SE Asia, beaten by Grab and GoJek, now those two are fighting for the territory.

 

[Wisnu]

First time use grab in Bali. After 10 minutes waiting the canceled my booking.
Then book again, now the car arrived on time but once in the car, the driver asked me to cancell our booking to avoid 20% fee for grab.

 

[Balifrog]

First time use grab in Bali. After 10 minutes waiting the canceled my booking.
Then book again, now the car arrived on time but once in the car, the driver asked me to cancell our booking to avoid 20% fee for grab.

The driver asking to "officially" is a classic, in order for him not to pay the 20% commission to Grab.

 

[Daniel50]

the driver asked me to cancell our booking to avoid 20% fee for grab.

Apparently they don't call themselves "Grab" for nothing.