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Grab gives Uber tough competition with investment of $700 million in Indonesia

It is evident that there are many companies around the world, which is willing to take up the business of ride-hailing. An undeniable fact here is that the business entrepreneurs are able to create good amounts of revenue with this kind of business. Though there are many companies which have their own startups in this particular field.
Image result for Grab gives Uber tough competition with investment of $700 million in Indonesia
Uber is one of the companies which have pulled the chords at the right note and the landing of the notes has been really high and on the dot. They started the business back in 2009 and it has been around 7 years that they are into this ride-hailing business. The growth of the company is really tremendous, at present the service is available in almost more 550 cities around the world.

There are other sets of companies who are trying to catch up with Uber or much better provide an awesome service than what the company is already providing to the people. The company has been able to create huge revenues and the investors have invested in Uber, big time. Its rival companies on other are trying to expand their business and make it tough for Uber to get through.

Ironically, the taxi drivers who do not belong to any of these platforms find it hard to cope with the new drivers coming up as a competition to them. In fact, they are a huge competition to the usual taxi drivers. If they need to keep up with them, then they need to make changes in their fares for the rides which the people would be taking from them.

One the prominent reasons why people prefer to take the cabs which are connected to the ride-hailing organizations is the fare which they pay for the rides. Apart from that, they will be able to get a ride by just tapping a few options on the app and it is at our doorstep or in the location in which we want it. The companies are putting efforts to provide better services to the people.

Grab is another famous ride-hailing organization which has a strong base in the Southeast Asia. It is planning to invest around 700 million dollars in Indonesia to expand its business. This comes after the company facing a protest from the local taxi drivers over the last year. It is said that Grab will be rolling out this particular funding in a span of 5 years from now.

By far of all the investments which Grab has made so far, this is considered to be biggest of all. This is the biggest ever investment which the company has ever made in any of the countries. It is evident that the service is predominantly available in Malaysia, Philippines, Thailand, Singapore, and Indonesia. This expansion is definitely going to go places and create a good profit to the company as well.

The fact here is that with the massive expansion of their service in Indonesia, it is really going to be tough to their rival Uber and the hyperlocal transport service provider Go-Jek. It is said that a part of the investment will be dedicated to set a research center in Jakarta. Around 100 million dollars will be invested in the financial funding for the technology companies in the vicinity.

Apart from this investment and expansion, the company is planning to recruit as well. It is said that there will be around 150 engineers would be recruited to handle and supervise the research center in Jakarta, which would be set up by the year 2019. Grab is majorly financially backed by the Japan’s Softbank and the bank stated that it will be creating a scaffold in Indonesia for the company.

It is the first step towards making their business bigger and better for good and it is expected that this complete investment from the company would be made by the year 2020. The chief executive of Grab Anthony Tan stated that they have been through the ups and downs in Indonesia under certain circumstances they were not sure with what needs to be done in the first place.

On a later note, they realized the fact that they need to find a resolution to make sure that they are leading on the right path. This particular investment which has been made by the company is said to be one amongst the “2020 Master Plan”. Along with their setup for the research center, they are planning to invest in a few startup companies as well.

They also would like to improvise the ways in which the payments are being made and want to bolster the ways in which the online or electronic payments are being made. The head for Grab Indonesia Ridzki Kramadibrata said that they would be starting to build the research and facility center with this quarter.

On the flip side, the Communication and Information minister Rudiantara made a sarcastic statement that the research center would be located in Karawaci in Tangerang, Banten. It is a location where one of the investors for Grab is actually located and has its base, which is Lippo Group. They would like to join hands with Lippo and Nobu to improvise the e-payments system which is being used by Grab.

Post the collaboration, the users from Grab will be able to get an access to the services and goods from the retail partners of Lippo. Apart from these investors, there are other investors as well, like China Investment Corp, Didi Chuxing (China’s ride-hailing company), and Temasek Holdings (Singapore State Wealth Fund) as well.

Apart from providing rides to their riders, Grab provides motorcycle-taxi hailing, packages, and food delivery services as well. It is said that the company has managed to raise funds of around 750 million dollars over the last year in the month of September. On the other end, the local company Go-Jek pulled off by raising a fund of 550 million dollars.

It is said that by 2025, the value of the company in Indonesia would rise to around 5.6 billion dollars and it is significantly huge and a promising value as well. Though the company has undergone a few issues from the local taxi drivers, it is planning to make it big and provide better services to the people. They assert that their app has been downloaded for around 33 million times.

There are around more than 600, 000 drivers who work under the platform of Grab. The current value for the company is said to be around 3 billion dollars and their service is available in around 35 cities across Southeast Asia. Jakarta is considered to be the largest market for Grab and hence they are planning to start up with their research center.

Unfortunately, in the month of March, the local taxi drivers protested against the company in Jakarta and the city came to a standstill and did create an utter chaos. In fact, the people had to suffer from the roadblock as well. Amidst all these protests, the company has managed to go ahead and make an investment in the expansion of its business.

It is a fact that the companies do undergo a rough patch, but they are equipped enough with the skills to get through and make it to the top and it is clear that Uber is receiving strong competition from all corners of the world and it is time for it to change its ways and make sure that it remains in the top position in the ride-hailing industry. For Grab, it is a way to go and make the best out of its expansion and investment as well.

Author Bio:

Anand Rajendran is CEO and Co-Founder of Dectar apps, best PHP scripts development company located in India. Dectar is a part of Casperon Technologies a leading social and mobile development company which is Developing Taxi Dispatch Software. Cabily Script is a clone of Uber, which developed by the tech gigs of his company.