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  • 08.04.16

Uber’s competitors are raising billions to make sure it doesn’t dominate southeast Asia

Now that Uber is out of China, its competitors in other areas in Asia are hoping it can stymie the ride-hailing company’s growth by raising hundreds of millions to billions to beat Uber in other countries. Uber’s Singapore-based rival Grab has raised $1 billion since Uber sold to China’s Didi Chuxing, reports the Wall Street Journal. The Journal says that Grab chief executive Anthony Tan wrote in an email to employees this week that Uber “lost once, and we will make them lose again…Didi’s success reinforces what we have believed all along [that local competitors can beat Uber in their own backyard].”

Then over in Indonesia motorbike taxi on-demand service and Uber rival Go-Jek has raised an additional $550 million in new funding to continue expanding in the country. Earlier this year Uber launched UberMoto in the country to cut into Go-Jek’s business. As TechCrunch reports:

This new fund raising comes at an interesting time for Southeast Asia’s on-demand services. Uber’s decision to sell its China operations to Didi Chuxing is likely to mean that the U.S. company — valued at $66 billion — will divert more resources into Southeast Asia and India, potentially increasing the competition with Grab in its six markets and Go-Jek in Indonesia. Uber has already started launching new services across Southeast Asia and reached operational profitability in two countries.

MG