Sensing Weakness, Uber's Asian Rivals Make $2.5 Billion Play

Grab gets $2B from Didi and SoftBank to fuel bid to defeat Uber in Southeast Asia

And Grab, which does not disclose financials, is already leading by far in Southeast Asia's fledgling ride-hailing market, which is expected to top $13 billion in annual sales by 2025, according to a report from Google and Temasek.

Grab raised $2 billion from Didi Chuxing and SoftBank Group in the largest - ever venture fundraising in Southeast Asia, joining forces with two companies instrumental in driving Uber Technologies out of China. Grab is gearing up to throttle your business in Southeast Asia, with help from your nemesis.

Both Didi and SoftBank have long-standing relationships with Grab, formerly known as GrabTaxi.

This latest influx of funding will be used to solidify Grab's market position in South-East Asia, as well as bolster investment in its mobile payments platform, GrabPay.

"With their support Grab will achieve an unassailable market lead in ridesharing, and build on this to make GrabPay the payment solution of choice for Southeast Asia", Tan added.

The record financing follows Uber's retreat from Russian Federation and China, massive markets where Uber spent billions but ultimately capitulated to well-financed and savvy local rivals.

The company has steadily fought off competition from Uber in the region and the partnership with DiDi Chuxing is particularly significant, given the Chinese company virtually ended Uber's ambitions in the world's second-largest economy past year.

But its share could be under threat as San Francisco-based Uber, the world's largest ride-hailing service, is expected to increase its focus on the region after it folded its China business into Didi previous year.

This sentiment was echoed by chairman and CEO of SoftBank Masayoshi Son, who said in the press release that Grab is a "tremendously exciting company in a dynamic and promising region" and it is excited to deepen the partnership. Today, the Grab app has been downloaded onto over 50 million mobile devices, giving passengers access to the region's largest land transportation fleet comprising over 1.1 million drivers.

Grab offers private auto, taxi, motorbike and carpooling services in seven countries and 65 cities across Southeast Asia, a region of 650 million people. Its proprietary cashless top-up payment service GrabPay Credits was also launched in December a year ago.

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