Grab's Nasdaq debut to set tone for Southeast Asian tech listings

SINGAPORE -- Grab, Southeast Asia's biggest ride-hailing and delivery firm, makes its market debut on Thursday after a record $40-billion merger with a special purpose acquisition company (SPAC), in a listing that will set the tone for other regional offerings.

The backdoor listing on Nasdaq marks the high point for the nine-year-old Singapore company that began as a ride-hailing app and now operates across 465 cities in 8 countries, offering food deliveries, payments, insurance and investment products.

Grab's rivals, including regional internet firm Sea and Indonesia's GoTo Group, are also bulking up, with the region's internet economy forecast to double to $360 billion in gross merchandise volume by 2025.

Grab was founded by Anthony Tan, its chief executive, and Tan Hooi Ling, who developed the firm from an idea for a Harvard Business School venture competition in 2011.

CEO Tan, 39, expanded Grab into a regional operation with a range of services, after launching as a taxi app in Malaysia in 2012. It later moved its headquarters to Singapore.

"What we have shown to the world is that homegrown tech companies can develop great technology that can compete globally, even when international players are in town ... we can compete and win," Tan told Reuters.

He said Grab's listing would help showcase the opportunity available to investors in Southeast Asia, a region with a population of about 650 million.

Grab's listing brings a payday bonanza to early backers such as SoftBank Group Corp. and Chinese ride-hailing giant Didi Chuxing, which invested as early as 2014.

They were later joined by others, such as Toyota Motor, Microsoft and Japanese bank MUFG. Uber became a Grab shareholder in 2018 after selling its Southeast Asian business to Grab following a five-year battle.

Analysts see scope for many players in Southeast Asia's fragmented food delivery and financial services markets, but the road to profitability can be a long one.

In September, Grab cut its full-year adjusted net sales forecasts, citing renewed uncertainty over pandemic curbs on movement.

Third-quarter revenue fell 9 percent and its adjusted loss before interest, taxes, depreciation, and amortization (EBITDA) widened 66 percent to $212 million. Grab said GMV jumped 32 percent in the quarter to a record $4 billion.

It aims to turn profitable on an EBITDA basis in 2023.

Grab said it completed its business combination with the SPAC, Altimeter Growth Corp. Grab will begin trading on Nasdaq under the ticker symbol "GRAB."

Grab raised $4.5 billion alongside the SPAC transaction, including $750 million from Silicon Valley tech investor Altimeter Capital Management in a deal in April.

-reuters-

Grab to announce merger with US SPAC, to be valued at nearly $40B: sources

SINGAPORE - Southeast Asia's largest ride-hailing and food delivery firm Grab Holdings is set to announce later on Tuesday a merger with US-based Altimeter that is set to value Grab at nearly $40 billion and lead to a public listing, three people told Reuters.

The merger will make it the biggest blank-check company deal ever.

Grab's agreement with a special purpose acquisition company (SPAC) backed by Altimeter Capital includes a $4-billion private investment in public equity (PIPE) from a group of Asian and global investors including Fidelity International and Janus Henderson.

Singapore-based Grab declined to comment. There was no response from Silicon Valley-based Altimeter to an emailed request for comment.

The two fund managers also did not respond to an emailed query.

The sources declined to be identified due to the sensitivity of the matter.

The nearly $40-billion valuation is based on a proforma equity value, two of the sources said.

-reuters-

Malaysia threatens ride-hailing firm Grab with $21-million fine

KUALA LUMPUR - Malaysia's competition watchdog on Thursday threatened to hit Grab with a $21-million fine for practices that allegedly reduce competition, the latest problem for the ride-hailing giant.

Grab is the biggest ride-hailing firm in Southeast Asia, and has strengthened its hold on the market since buying US rival Uber's operations in the region last year. 

But the Singapore-headquartered firm has come under scrutiny from regulators in several countries due to concerns about its dominant position. 

The Malaysia Competition Commission proposed fining Grab almost 87 million ringgit ($21 million) for preventing its drivers from providing advertising services for the company's competitors.

This had the effect of "distorting competition" by creating barriers to Grab's rivals, it said.

"It is important that barriers to entry for new players remain low, and for existing players to have the ability to grow and compete on merits to ensure that competition can remain healthy," said Iskandar Ismail, the watchdog's chief executive.

In addition, a daily penalty of 15,000 ringgit will be imposed should Grab fail to take action to address the competition concerns.

Grab has 30 days to respond to the watchdog, after which a final decision will be made.

The company said they had complied fully with competition laws and were "surprised" by the proposed fine.

"We believe that it is common practice for businesses to decide upon the availability and type of third-party advertising on their respective platforms," a Grab statement said.

Last year, Singapore fined Grab and Uber $9.5 million for breaking competition rules when they merged. 

source: news.abs-cbn.com

Grab under fire for surge pricing, difficulty in booking

Ride-sharing company Grab defended its service after receiving complaints of surge pricing and booking difficulties from passengers. More from Jacque Manabat. - Business Nightly, ANC, August 24, 2017

source: news.abs-cbn.com

Transport turmoil: Grab the Uber by the tail

Two years after acquiring legal status, Transportation Network Vehicle Services (TNVS) Grab and Uber find themselves at loggerheads with the Transportation Department’s franchise regulator.

The Land Transportation Franchising and Regulatory Board (LTFRB) is cracking down on both companies for accrediting and activating thousands of TNVS despite an existing moratorium.

The LTFRB believes "colorum" TNVS units now number around 50,000. The agency has set a July 26 deadline for them to stop operating, after which their vehicles will be confiscated and the driver slapped with a fine of P120,000.

Grab and Uber patrons have flooded social media sites with their criticism of how the LTFRB has handled this controversy supposedly to the disadvantage of commuters who have spurned traditional taxis. - ANC Future Perfect

source: news.abs-cbn.com

Lawmakers seek to regulate ride-sharing services

MANILA - Several lawmakers on Wednesday filed separate bills seeking to standardize the operation of ride-sharing companies targeted in a looming crackdown by transportation officials.

Sen. Grace Poe, Davao City Rep. Karlo Nograles and his brother, Puwersa ng Bayaning Atleta (PBA) Party-list Rep. Jericho Nograles, proposed separate measures aimed at fixing the licensing and fare calculation systems of transport network companies (TNCs), whose unregistered units are under threat of being barred from plying thoroughfares. 

The government has said it would apprehend starting July 26 some 50,000 drivers from TNCs Grab and Uber who have no operating licenses.  

Applications for new permits have been suspended since last year, and regulators accused the two firms of taking in new drivers despite a moratorium.


In Senate Bill No. 1501, Poe, chair of the Senate committee on public services, proposed requirements for the accreditation of ride-sharing vehicles, guidelines for their operations, and possible penalties.

The Nograles brothers also made similar proposals under House Bill No. 6009.

Under both bills, TNCs will be required to secure operating permits from the Land Transportation Franchising and Regulatory Board (LTFRB).

The proposed law will also task TNCs to:

    to create an application process and maintain a database for drivers;
    implement a zero tolerance policy for drug and alcohol use;
    establish regulations for vehicle safety and;
    disclose the fare calculation method

"Prudent regulation is necessary for government to ensure the highest degree of service for the general public," Poe said. 

"The concept of Uber and Grab is new to us so, therefore, new regulations must be set to ensure that they are properly managed," said Jericho Nograles. 

The Philippines was the first country in the world to regulate ride-sharing services. Uber and Grab are especially popular in Metro Manila, where traffic jams, faulty trains and selective or overcharging taxi drivers are a constant source of misery for commuters.

Poe earlier said her committee would investigate the row between regulators and ride-sharing companies.

source: news.abs-cbn.com

Grab launches instant messaging platform

MANILA - Ride-sharing service Grab on Tuesday launched an instant messaging platform to allow quick chats between drivers and passengers through the app.

GrabChat comes complete with commonly used template messages for drivers and passengers to enable safe communication between drivers and passengers, the company said.

“Many Filipino drivers and riders still rely on calls and text messages before a ride commences, either to help drivers locate passengers or inform drivers of a rider’s specific whereabouts," Grab’s country head Brian Cu said in a statement.

"GrabChat is part of making transport freedom a reality among Filipinos, as it provides an in-app communications solution to drivers and passengers, minimizing call and SMS charges,” he added.

An auto translate feature will be added to the service by the end of the year to allow regional travelers to communicate easily with local drivers.

GrabChat is currently applicable for GrabCar and GrabTaxi services and will be gradually rolled out this week for all Android and iOS users.

source: www.abs-cbnnews.com