Go-Jek’s SEA expansion had no impact on our numbers, says Grab exec

FILE PHOTO - People wait for the start of ride-hailing company Grab's fifth anniversary news conference in Singapore June 6, 2017. REUTERS/Edgar Su/File Photo

Go-Jek’s Southeast Asian expansion has made ‘no impact’ on the number of transactions and drivers on Grab’s network, according to Grab’s regional operations head Russell Cohen.

“We’ve seen no impact on our rides and our business has continued to grow,” Cohen said at a Grab media event on Tuesday.

“It’s still early days obviously, but we’re very focused on what we’ve been doing all along, which is ensuring customer quality and safety and being relevant to our users. There are lots of competitors in each of our markets so we treat this no differently,” he added.

Singapore-based Grab claims to work with 8.5 million ‘micro-entrepreneurs’ across the region. Of these, 4 million are drivers and the rest are merchants and agents, including those part of Indonesian firm Kudo’s network. The company, which claims to have the region’s largest land transportation fleet, says it has completed over 2.5 billion rides since its founding in 2012. Grab declined to provide a breakdown for the number of drivers and rides per market.

Its ride-hailing rival Go-Jek has been revving up its overseas presence after Grab announced the acquisition of Uber’s Southeast Asia business in March this year. Apart from its Indonesian home base, Go-Jek is also present in Singapore, Vietnam and Thailand.

DEALSTREETASIA has previously reported that Go-Jek has racked up commitments of close to $2 billion in an ongoing funding round from investors including return backers Google, Tencent, JD.com and Meituan-Dianping. The proceeds will be critical to fuelling Go-Jek’s expansion efforts across the region. The Indonesian unicorn is said to be eyeing an entry into Malaysia, Myanmar and Cambodia in 2019.

Meanwhile Grab has secured about $2.9 billion in its ongoing Series H round from investors including Toyota, Hyundai, Yamaha, Microsoft, KASIKORNBANK, Booking Holdings, OppenheimerFunds and Ping An Capital. The round could likely top $3 billion.

The Singapore-headquartered unicorn also continues to grapple with antitrust concerns after the deal with Uber.

Earlier this week, Vietnamese authorities ruled the Grab-Uber transaction to be anti-competitive and of having breached two norms of its competition law. In the Philippines and Singapore, Grab has been fined $300,000 and $4.7 million respectively by local regulators for infringing on competition law.

In Malaysia, a final verdict on anti-competition regulation is expected to come out this month.

Also Read:

Singapore’s Grab snags $150m from Japanese automaker Yamaha

Now Vietnam finds Grab-Uber merger anti-competitive

Go-Jek secures nearly $2b in commitments, to finalise new funding round next week

Indonesia’s Go-Jek launches beta app in Thailand

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.