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India’s Ola spins out a dedicated EV business — and it just raised $56M from investors

Posted by on Mar 1, 2019 in Ankit Jain, Asia, Automotive, Bhavish Aggarwal, carsharing, Co-founder, Collaborative Consumption, Companies, didi, Didi Chuxing, DST Global, electric vehicle, Flipkart, funding, Fundings & Exits, head, India, ola cabs, Sachin Bansal, Sequoia, Softbank, SoftBank Group, Steadview Capital, temasek, Tencent, tiger global, transport, Uber, United States | 0 comments

Ola, Uber’s key rival in India, is doubling down on electric vehicles after it span out a dedicated business, which has pulled in $56 million in early funding.

The unit is named Ola Electric Mobility and it is described as being an independent business that’s backed by Ola. TechCrunch understands Ola provided founding capital, and it has now been joined by a series of investors who have pumped Rs. 400 crore ($56 million) into Ola Electric. Notably, those backers include Tiger Global and Matrix India — two firms that were early investors in Ola itself.

While automotive companies and ride-hailing services in the U.S. are focused on bringing autonomous vehicles to the streets, India — like other parts of Asia — is more challenging thanks to diverse geographies, more sparse mapping and other factors. In India, companies have instead flocked to electric. The government had previously voiced its intention to make 30 percent of vehicles electric by 2030, but it has not formally introduced a policy to guide that initiative.

Ola has taken steps to electrify its fleet — it pledged last year to add 10,000 electric rickshaws to its fleet and has conducted other pilots with the goal of offering one million EVs by 2022 — but the challenge is such that it has spun out Ola Electric to go deeper into EVs.

That means that Ola Electric won’t just be concerned with vehicles, it has a far wider remit.

The new company has pledged to focus on areas that include charging solutions, EV batteries, and developing viable infrastructure that allows commercial EVs to operate at scale, according to an announcement. In other words, the challenge of developing electric vehicles goes beyond being a ‘ride-hailing problem’ and that is why Ola Electric has been formed and is being capitalized independently of Ola.

An electric rickshaw from Ola

Its leadership is also wholly separate.

Ola Electric is led by Ola executives Anand Shah and Ankit Jain — who led Ola’s connected car platform strategy — and the team includes former executives from carmakers such as BMW.

Already, it said it has partnered with “several” OEMs and battery makers and it “intends to work closely with the automotive industry to create seamless solutions for electric vehicle operations.” Indeed, that connected car play — Ola Play — likely already gives it warm leads to chase.

“At Ola Electric, our mission is to enable sustainable mobility for everyone. India can leapfrog problems of pollution and energy security by moving to electric mobility, create millions of new jobs and economic opportunity, and lead the world,” Ola CEO and co-founder Bhavish Aggarwal said in a statement.

“The first problem to solve in electric mobility is charging: users need a dependable, convenient, and affordable replacement for the petrol pump. By making electric easy for commercial vehicles that deliver a disproportionate share of kilometers traveled, we can jumpstart the electric vehicle revolution,” added Anand Shah, whose job title is listed as head of Ola Electric Mobility.

The new business spinout comes as Ola continues to raise new capital from investors.

Last month, Flipkart co-founder Sachin Bansal invested $92 million into the ongoing Series J round that is likely to exceed $1 billion and would value Ola at around $6 billion. Existing backer Steadview Capital earlier committed $75 million but there’s plenty more in development.

A filing — first noted by paper.vc — shows that India’s Competition Commission approved a request for a Temasek-affiliated investment vehicle’s proposed acquisition of seven percent of Ola. In addition, SoftBank offered a term sheet for a prospective $1 billion investment last month, TechCrunch understands from an industry source.

Ola is backed by the likes of SoftBank, Tencent, Sequoia India, Matrix, DST Global and Didi Chuxing. It has raised some $3.5 billion to date, according to data from Crunchbase.


Source: The Tech Crunch

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China’s Didi is laying off 15% of its staff

Posted by on Feb 15, 2019 in Asia, carsharing, China, didi, driver, transport, Transportation | 0 comments

China’s largest ride-hailing firm Didi plans to let go 15 percent of its employees or about 2,000 people this year, sources told TechCrunch. The cut comes as the beleagured transportation giant copes with a stricter regulatory environment that puts a squeeze on driver supply and backlash from two high-profile passenger murders last year.

Chief executive Cheng Wei made the announcement during an internal meeting Friday morning as he told management that Didi will scale back its non-core businesses and step up investments in key areas, including safety technology, product engineering, offline driver management and international operations.

The sources did not specify which of Didi’s business units are affected by the layoff but said Didi will add 2,500 new hires by the end of the year to work on company priorities, which will give the company a total headcount of about 13,000 staff around the world.

In addition, Didi will work to ramp up operational efficiency, an issue that Didi also addressed during a major re-organization in December. A Didi spokesperson declined to comment.

Earlier this week, Chinese tech news portal 36Kr reported that Didi lost $1.6 billion in 2018 and spent $1.67 billion on subsidies for drivers. According to an internal memo Cheng made in September, Didi lost 4 billion yuan ($590 million) in the first half of 2018 and the company had not been profitable for six years.

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Source: The Tech Crunch

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SoftBank’s Vision Fund is preparing to invest $1 billion in Grab

Posted by on Dec 21, 2018 in Asia, booking holdings, China, didi, funding, Fundings & Exits, grab, India, Indonesia, Microsoft, series h, Singapore, Softbank, SoftBank Group, Southeast Asia, Toyota, Uber, Vision Fund, vodafone, yamaha motors | 0 comments

SoftBank’s Vision Fund is set to continue its recent spree of investments in Asian tech unicorns. The mega fund — which is targeted at $100 billion — is planning to invest upwards of $1 billion into Southeast Asia’s ride-hailing leader Grab, two sources with knowledge of the plan told TechCrunch. The investment could reach as much as $1.5 billion, one source added.

A SoftBank representative did not respond to a request for comment. Grab declined to comment.

The Vision Fund has made significant investments in three billion-dollar Asian companies in recent months. That includes backing India’s OYO as part of a $1 billion round (which included money from Grab) in September, writing a $2 billion check for Korea’s Coupang in November and co-leading a $1.2 billion round for Tokopedia in Indonesia alongside Alibaba earlier this month.

There is a pattern that SoftBank appears to be following here.

In all three cases, the Japanese company was an existing investor and, having transferred its stakes to the Vision Fund, it then doubled down and invested again via the Vision Fund itself. That’s also the plan for this Grab deal, TechCrunch understands.

SoftBank’s most recent financial report, filed in November, explains that it plans to move its stakes in ride-hailing firms Uber, China’s Didi, India’s Ola and Grab over to the Vision Fund. But that hasn’t happened yet and it isn’t clear when it will.

“The Company expects that the necessary procedures will be made in the future to obtain applicable consent from limited partners of the Fund and regulatory approvals for the transfer,” it explained in the report, which doesn’t include a projected timeframe.

One source told TechCrunch that the investment in Grab is contingent on that equity transfer being made, as was the case with Tokopedia and Coupang, which saw SoftBank-owned stakes transferred to the fund in Q3 of this year.

Grab CEO and co-founder Anthony Tan [Photographer: Ore Huiying/Bloomberg/Getty Images]

While we don’t know how long that wait will be, Grab is hardly short on cash. The Singapore-based company is putting the final touches to its Series H fund which is focused on raising a total of $3 billion. It has already received significant contributions from Toyota, Microsoft, Yamaha Motors, Booking Holdings and a range of institutional investors.

Grab operates across eight markets in Southeast Asia, where it claims over 130 million downloads and more than 2.5 billion completed rides to date. The company acquired Uber’s business earlier this year in a deal that saw the U.S. company pick up a 27.5 percent stake in Grab and turn their rivalry into a partnership. The merger deal, however, was criticized by regulators and, in Singapore, the pair were fined a total of $9.5 million for violating anti-competition laws.

Grab is Southeast Asia’s highest-valued tech startup, having commanded an $11 billion valuation through this Series H round. It isn’t clear how much that figure will increase if, as and when this Vision Fund investment closes. The company has raised around $6.8 billion to date from investors, according to data from Crunchbase.


Source: The Tech Crunch

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Meituan, China’s ‘everything app’, walks away from bike sharing and ride hailing

Posted by on Nov 23, 2018 in alibaba, Asia, carsharing, China, didi, Didi Chuxing, driver, Ele.me, Food, Meituan, Meituan-Dianping, mobike, Nanjing, ofo, shanghai, Softbank, Tencent, transport, Transportation, Uber | 0 comments

A major player in the race to transport Chinese people around is losing steam. Meituan Dianping, the Tencent-backed all-encompassing platform for local services, continues to put the brakes on bike-sharing and ride-hailing, the company said on its earnings call on Thursday.

The eight-year-old firm is best known for competing with Alibaba-owned Ele.me in food deliveries — the segment that makes up the majority of its sales — and hotel booking, but it’s aggressively branched into various fronts like transportation.

In April, Meituan entered the bike-sharing fray after it scooped up top player Mobike for $2.7 billion to face off Alibaba-backed Ofo. Over the past few years, Mobike and Ofo were burning through large sums of investor money in a bid to win users from subsidized rides, but both have shown signs of softening their stance recently

Mobike is downsizing its fleets to “avoid an oversupply” as the bike-sharing market falters, Meituan’s chief financial officer Chen Shaohui said during the earnings call. Ofo has also scaled back by closing down many of its international operations.

In the meantime, Meituan said it has no plans to expand car-hailing beyond its two piloting cities — Shanghai and Nanjing — after venturing into the field to take on Didi Chuxing last December. The update is consistent with what the firm announced in its prospectus ahead of a blockbuster $4.2 billion initial public offering in Hong Kong this September.

The halt is likely related to changing dynamics in the country’s shared rides. Following two passenger murders on Didi, the Softbank-backed transportation platform that took over Uber China in 2016, Chinese regulators launched their strictest verification requirements for drivers across all ride-hailing apps. The mandate has squeezed driver numbers, making it harder to hire rides on Didi and its competitors.

During its third quarter that ended September 30, Meituan posted a 97.2 percent jump on revenues to 19.1 billion yuan, or $2.75 billion, on the back of strong growth in food delivery transactions. The firm’s investments in new initiatives – including ride-hailing and bike-sharing – took a toll as operating losses nearly tripled to 3.45 billion yuan compared to a year ago. Meituan shares plunged as much as 14 percent on Friday, the most since its spectacular listing.


Source: The Tech Crunch

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Toyota invests $500 million into Uber

Posted by on Aug 27, 2018 in Amazon, Automotive, didi, Mazda, Toyota, toyota research institute, Transportation, Uber, volvo | 0 comments

Toyota and Uber are partnering to bring an on-demand autonomous ride-hailing service to market, a deal that includes a $500 million investment from the Japanese automaker.

Under the agreement, Toyota Sienna minivans will be equipped with Uber’s self-driving technology and then deployed on the ride-hailing company’s network, the companies said.

The deal, which was first reported by the WSJ and later confirmed with new details by TechCrunch, is unusual because a third—and yet unnamed fleet operator—would own and operate the mass-produced autonomous vehicles. Pilot-scale deployments will begin on the Uber ride-sharing network in 2021, the companies said.

It’s a first of its kind deal for Uber, CEO Dara Khosrowshahi noted in a statement released Monday afternoon. It’s also one that should help further improve Uber’s image as a reckless do-now-ask-for-forgiveness startup, particularly in the wake of the fatal self-driving vehicle accident in March.

“Uber’s advanced technology and Toyota’s commitment to safety and its renowned manufacturing prowess make this partnership a natural fit,” Khosrowshahi. “I look forward to seeing what our teams accomplish together.”

The companies are calling this a “Autono-MaaS” fleet, a jargon term meant to mean autonomous-mobility as a service.

Toyota (and its research arm the Toyota Research Institute) has a different deployment strategy for autonomous vehicles than its competitors. The company has previously said it plans to take a dual approach to autonomy that it calls “Guardian” and “Chauffeur,” both of which use the same technology stack.

Toyota’s idea is to develop fully autonomous cars to serve an aging population and the disabled as well as work on technology for regular production cars that could switch between assisted and full autonomy. This “guardian” technology would operate silently in the background.

TRI debuted its first-generation autonomous vehicle in March 2017. Its Platform 2.1 vehicle, revealed just a few months later, features light ranging and detection radar developed by Silicon Valley startup Luminar.

Under this new agreement, Uber’s autonomous driving system and the Toyota “guardian” automated safety support system would both be integrated into these Autono-MaaS vehicles.

Toyota will also use its core information infrastructure for connected vehicles—something is calls a mobility services platform, or MSPF.

“Uber’s automated driving system and Toyota’s guardian system will independently monitor the vehicle environment and real-time situation, enhancing overall vehicle safety for both the automated driver and the vehicle,” said Dr. Gill Pratt, Toyota Research Institute CEO.

Toyota already had a relationship with Uber, albeit not as close as it will under this new arrangement. Toyota announced at CES in January that it is working with Amazon, ride-hailing companies Uber and Didi, automaker Mazda and Pizza Hut to develop an electric autonomous shuttle that can be used to deliver people or packages. The business alliances were created to focus on the development of the new e-Palette Concept Vehicle in the near term.


Source: The Tech Crunch

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Cryptocurrency and blockchain bring Asia funds to the forefront of U.S. tech

Posted by on Aug 26, 2018 in Andreessen Horowitz, Asia, Baidu, blockchain, China, Connie Chan, cryptocurrency, decentralization, didi, Finance, Huobi, Meituan-Dianping, sequoia capital, Softbank, Tencent, Uber, Venture Capital, Y Combinator | 0 comments

Since early 2017, there’s been a new trend in the U.S. where a number of Asian funds have been actively involved in early-stage crypto investing. Many folks in traditional tech have not heard of them before, but these funds will only be growing more important as cryptocurrency and blockchain solidify their position in the American tech industry.

Funds with Asian money, primarily from China, have been in Silicon Valley for a long time. However, in the past, they were rarely heard or seen in the press, mostly because their assets under management (AUM) and investment check sizes were smaller in size and fewer in frequency than their American counterparts on average. These funds were often only found investing in later-stage rounds, since they weren’t able to compete against the top venture funds in the early rounds for highly-coveted startups, as many entrepreneurs weren’t familiar with them.

This has changed in the last few years and recent investment stats are very telling of a different trend. In 2017,  Asian investors directed 40% of the record $154bn in global venture financing, versus their American counterparts at 44%, according to an analysis by the Wall Street Journal. Specifically, deals led by U.S.-based venture capital and tech investment firms, such as Sequoia Capital or Andreessen Horowitz, made up of $67 billion in venture financing, just slightly more than the $61 billion led by Asian investors, including Tencent and SoftBank. Asia’s share is up from less than 5% just ten years ago.

Not only is there more money coming from Asia, but U.S. funds are also coming to realize the growing and massively underinvested tech opportunity in China and the rest of Asia. In a joint study issued by China’s Ministry of Science and Technology affiliate and a Beijing-based consultancy, the 2017 China Unicorn Enterprise Development Report showed that in the same year, China had 164 unicorns, worth a combined US$628.4 billion, while the most recent U.S. figures suggested 132 unicorns. Companies such as Meituan Dianping (the Yelp equivalent of China) and Didi (the Uber equivalent of China) are examples of large disruptive technology companies from China that have garnered massive valuations.

Subsequently, more U.S.-based funds are branching out geographically. In the past, some funds may have had an understanding of China’s large market opportunity and had a China-focused partner, team, or partnership relationships in Asia. But now, there is increasingly more focus on Asia from these funds than ever before, not only driven by the potential investment opportunities, but also by the untapped market opportunity for their portfolio companies.

Several funds have been ahead of the game. For example, Y Combinator recently made a big entrance into China with their announcement of a new China office headed by Qi Lu, the former COO of Baidu. Additionally, Connie Chan, who has been responsible for spearheading Andreessen Horowitz’s China network, was promoted to general partner earlier this year, the first to be promoted from within the company.

Cryptocurrency and blockchain accelerate West-East investment ties

Now, cryptocurrency and blockchain have accelerated this cross-border activity. The global, or rather, the censorship-resistance nature of cryptocurrency and blockchain have brought Asia – and specifically China – to the forefront of the focus. In the blockchain space, Chinese companies make up more than 80% share in mining compute power, while Asia in aggregate makes up a significant market share in cryptocurrency trading. The top Cryptocurrency exchanges, including Binance, OKex and Huobi, are also run by Chinese teams.

The cryptocurrency phenomenon began in Asia and the U.S. around the same time, but Asia got a head start due to a favorable set of regulations compared to the U.S. While certainly not laissez faire, blockchain technology has been hailed by regulators throughout countries such as China, Japan and Korea. Since the start of this year, blockchain has been highlighted as one of the most promising technologies by China’s President Xi Jingping, calling it “a breakthrough technology.” Japan has also placed a spotlight on the technology in an effort for the country to re-invigorate itself and its economy. And last but not least, Korean regulators have started debating the idea of using blockchain technology as part of the democratic process, with advocates calling for the introduction of blockchain-powered voting systems.

As a result, Chinese and Korean cryptocurrency and blockchain funds for the first time have an edge, with access to proprietary information and relationships, along with a massive market that cryptocurrency companies in the U.S. can no longer ignore.

Eric Ly, a former CTO and co-founder of LinkedIn, recently started a blockchain based company called Hub. And in our conversation, he has recognized the importance of Asia as a market: “it’s a region that is not to be dismissed, especially in the crypto world in terms of the interest and the activities that’s going on there.” With more funds coming from China and Asia, and many crypto projects coming out of Asia, there will be more cross-border activities on both the investment as well as business development front.

Given the global nature of cryptocurrencies and blockchain, it’s increasingly important for entrepreneurs to raise money from investors who are not just local to where their team is based but also globally useful to one’s success as a cryptocurrency and blockchain company. Not only can overseas investors bring a vastly different point of view to the table, but they can also provide access and market opportunities in the other half of the hemisphere that otherwise would have been difficult.

Strong examples of this fundraising pattern are emerging. Take Messari for instance, a company based out of New York with the mission to create an authoritative data resource for crypto assets. CEO Ryan Selkis has mentioned how he has made a conscious effort to raise from Asian and other global funds when he initially raised the company’s seed round.

Typically, regional investors will have better information and relationship with the local businesses and regulators, and that should prove to be useful as the company scales and grows overseas. Additionally, local investors will likely be more in touch with the policies and the regulators, which is crucial when it comes to treading through the gray areas in cryptocurrency and blockchain space. Having someone who recognizes and can predict regulatory inflection points would be hugely valuable for the company as they map out their global strategy.


Source: The Tech Crunch

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China’s Didi suspends carpooling service after another female passenger is mudered

Posted by on Aug 26, 2018 in alibaba, alibaba group, Asia, carsharing, China, Collaborative Consumption, didi, Didi Chuxing, driver, Ele.me, law enforcement, Meituan, Meituan-Dianping, mobike, transport, Uber, Vice President | 0 comments

Chinese ride-hailing firm Didi Chuxing, the $60 billion-valued company that bought out Uber’s China business, has suspended its carpooling service after the murder of a female passenger. The fatally is the second such incident this year after a passenger was murdered in May.

Police this weekend arrested a man who is accused of raping and killing a 20-year-old female who rode with him via Didi’s Hitch service on Friday in Zhejiang, a province in the east of China. Reuters reports that the woman had messaged her friend earlier in the day asking for help before she disappeared.

Authorities in Zhejiang city Leqing suspended the service before Didi later announced it would suspend Hitch nationwide. Didi’s other (commercial) carpooling and ride-hailing services are not affected by this suspension.

“We are sorry the Hitch service… would be suspended for now because of our disappointing mistakes,” Didi said in a statement.

Hitch is a modern take on hitchhiking that lets a passenger ride for free with a driver headed in their direction. Passengers are encouraged to leave a tip to cover petrol, but the idea is to make each car ride more efficient. Didi doesn’t monetize the service, but it is a strategic way to attract passengers and drivers who may use other services that the firm does draw revenue from.

Didi claims Hitch has handled over a billion trips in the past three years, but there are major safety issues.

This new murder occurred a little over three months after an air stewardess was killed in Henan province by a driver who got on to Didi’s platform using an account belonging to his father, a verified Didi driver. Following that incident, Didi suspended Hitch for six weeks. The service resumed in June with a number of restrictions, in particular, one that only allowed drivers to serve passengers of the same sex during late night hours.

This fatal Zhejiang ride occurred at 1pm, according to police, and there’s plenty to be concerned with.

Didi said in a statement that the alleged murderer, who does not have a criminal record, had been flagged to Didi’s safety team just one day before. A female passenger complained that the driver had requested her to ride in the front seat and then followed her for some time after she left his vehicle.

The Didi safety center representative who handled the complaint had not followed company policy of initiating an investigation within two hours, according to Reuters. That policy was introduced during the suspension period after Didi discovered another passenger had flagged suspicious behavior from the driver who then went on to commit the murder in May.

“The incident shows the many deficiencies with our customer service processes, especially the failure to act swiftly on the previous passenger’s complaint and the cumbersome and rigid process of information sharing with the police. This is too high a cost to pay. We plead for law enforcement and the public to work with us in developing more efficient and practical collaborative solutions to fight criminals and protect user personal and property safety,” Didi said in a statement.

The company confirmed that it has fired two executives following the murder: the general manager for Hitch and the company’s vice president of customer services.

Didi said it will launch a “co-supervisory process of our operations” which it invited members of the public and experts to take part in.

Following the murder in May, Didi said it has booked “proactive consultation sessions with relevant authorities and experts” as it sought to shore up its safety processes.

Didi has operated a virtual monopoly on ride-hailing services since it acquired and integrated Uber’s China business in 2016, but this year it has seen increased competition.

In particular, Didi is facing pressure from rival Meituan Dianping, which started out in local services but recently introduced ride-sharing services and moved into dockless bikes with the acquisition of Mobike. Meituan recently filed to go public in Hong Kong, with some reports suggesting it could raise as much as $4 billion.

Meituan is involved in a dogfight with Alibaba to win China’s local services market — Alibaba just amped up its efforts with a $3 billion raise for its Ele.me business unit — but no doubt Meituan will now doubly focus on its own safety and security measures to push its case as a legitimate alternative to Didi.

Didi has gone to great pains to emphasize that Hitch is well used — it hamfistedly shoved a mention of the service’s ride completion numbers into its apology statement — but at this point it seems best to shutter the service if it can’t guarantee the safety of all passengers, no matter how popular or strategic it may be.


Source: The Tech Crunch

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Fast-growing Chinese media startup ByteDance is raising $2.5B-$3B more

Posted by on Aug 8, 2018 in alibaba, alibaba group, Ant Financial, Apps, Asia, Beijing, bytedance, China, didi, Didi Chuxing, musical.ly, online payments, Software, The Financial Times, the wall street journal, tiktok, Toutiao, Uber, United States | 0 comments

Fast-growing Chinese media startup ByteDance is looking to raise as much as $3 billion to continue growth for its empire of mobile-based entertainment apps, which include news aggregator Toutiao and video platform Tiktok.

The Beijing-based startup is in early-stage talks with investors to raise $2.5 billion to $3 billion, according to a source with knowledge of the plans. That investment round could value ByteDance as high as $75 billion, although the source stressed that the valuation is a target and it might not be reached.

It’s audacious, but if that lofty goal is reached then ByteDance would become the world’s highest-valued startup ahead of the likes of Didi Chuxing ($56 billion) and Uber ($62 billion). Only Ant Financial has raised at a higher valuation, but the company is an affiliate of Alibaba and therefore not your average ‘startup.’

The Wall Street Journal first broke news of the ByteDance investment plan.

But there’s more: Earlier this week, the Financial Times cited sources who indicate that ByteDance is keen to go public in Hong Kong with an IPO slated to happen next year.

ByteDance is best-known for Toutiao, its news aggregator app that claims 120 million daily users, while it also operates a short-video platform called Douyin. The latter is known as TikTok overseas and it counts 500 million active users. TikTok recently merged with Musical.ly, the app that’s popular in the U.S. and was acquired by ByteDance for $1 billion, in an effort aimed at combining both userbases to create an app with global popularity.

The firm also operates international versions of Toutiao, including TopBuzz and NewsRepublic while it is an investor in streaming app Live.me.

The company’s growth has been mercurial but it has also come with problems as the company entered China’s tech spotlight and became a truly mainstream service in China.

ByteDance had its knuckles wrapped by authorities at the beginning of the year after it was deemed to have inadequately policed content on its platform. Then in April, its ‘Neihan Duanzi’ joke app was shuttered following a government order while Toutiao was temporarily removed from app stores. It returns days later after the company had grown its content team to 10,000 staff and admitted that some content it had hosted “did not accord with core socialist values and was not a good guide for public opinion.”


Source: The Tech Crunch

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Grab picks up $2 billion more to fuel growth in post-Uber Southeast Asia

Posted by on Aug 2, 2018 in alibaba, Asia, carsharing, China, Collaborative Consumption, Commuting, didi, Didi Chuxing, financial services, Fundings & Exits, Google, grab, Indonesia, KKR, lightspeed, lightspeed venture partners, offline to online, Philippines, Softbank, SoftBank Group, Southeast Asia, Tencent, Thailand, Toyota, transport, Uber, United States, vietnam, vulcan capital, warburg pincus | 0 comments

Grab, the ride-hailing service that struck a deal to take Uber out of Southeast Asia, has announced that it has pulled in $2 billion in new capital as it seeks to go beyond ride-hailing to offer more on-demand services.

The $2 billion figure includes a $1 billion investment from Toyota which was announced in June, and it sees a whole host of institutional investors join the Grab party. Some of those names include OppenheimerFunds, Ping An Capital, Mirae Asset — Naver Asia Growth Fund, Cinda Sino-Rock Investment Management Company, All-Stars Investment, Vulcan Capital, Lightspeed Venture Partners and Macquarie Capital.

Grab confirmed that the round is still open, so we can expect that it’ll add more investors and figures to this deal.

The deal values Grab at $11 billion post-money, which is the same as the $10 billion valuation it earned following the Toyota deal. The caliber of investors certainly suggests an IPO is on the cards soon — not that it ever hasn’t been — although the company didn’t comment directly on that when we asked.

This new financing takes Grab to $6 billion from investors. Some of its other notable backers include SoftBank and China’s Didi Chuxing, which both led a $2 billion round last year which gave Grab the gas to negotiate a deal with Uber that saw the U.S. ride-hailing giant exit Southeast Asia in exchange for a 27.5 percent stake in Grab. From that perspective, the deal was a win-win for both sides.

In this post-Uber world, Grab is transitioning to offer more services beyond just rides. It has long done so, with its own payment service and food deliveries, but it is rolling out a revamped “super app” design that no longer opens to a ride request page and that reflects the changing strategy of the Singapore-based company.

10 July 2018; Tan Hooi Ling, co-Founder, Grab, at a press conference during day one of RISE 2018 at the Hong Kong Convention and Exhibition Centre in Hong Kong. Photo by Stephen McCarthy / RISE via Sportsfile

Grab said in a statement today that this new money will go towards that “O2O” [offline-to-online] strategy that turns Grab’s app into a platform that allows traditional, offline services to tap the internet to reach new customers. The trend started out in China, with Alibaba and Tencent among those pushing O2O services, and Grab is determined to be that solution for Southeast Asia’s 650 million consumers.

Indonesia, Southeast Asia’s largest economy with a population of over 260 million, is a key focus for Grab, the company said. The company has been pushed out new financial services in the country, fueled by an acquisition last year, and it claims it is winning “significant market share” with GMV quadrupled in the first half of this year.

With Uber out of the picture, the company’s main rival for the ‘Southeast Asia Super App Crown’ is Go-Jek, the Indonesian on-demand service valued at $5 billion.

Go-Jek has long focused on its home market but this year it unveiled an ambitious plan to expand to three new markets. That kicked off yesterday with a launch in Vietnam, and the company has plans to arrive in Thailand and the Philippines before the end of the year.

Go-Jek has raised over $2 billion and it counts KKR, Warburg Pincus, Google and Chinese duo Tencent and Meituan among its backers.


Source: The Tech Crunch

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China’s Didi Chuxing is close to launching a taxi-booking service in Japan

Posted by on Jul 19, 2018 in 99, Apps, Artificial Intelligence, Asia, Australia, booking holdings, Brazil, careem, carsharing, China, Collaborative Consumption, didi, Didi Chuxing, grab, Japan, kyoto, Lyft, Masayoshi Son, Mexico, osaka, Softbank, taiwan, Taxify, transport, Uber | 0 comments

Days after raising $500 million via a strategic investment from travel giant Booking Holdings, Chinese ride-hailing giant Didi Chuxing has continued its international push with the launch of a local business in Japan.

Its new Japan-based unit is a joint venture with SoftBank, a longtime Didi investor, which has been in the works since an announcement back in February. Today’s news isn’t that the service is live yet — it isn’t — but rather than the JV has been formally launched.

Didi did say, however, that it plans to launch services for passengers, drivers and taxi operators in Osaka, Kyoto, Fukuoka, Tokyo and other major cities from autumn this year. Didi said that its users in China and Hong Kong will be able to use the soon-to-launch Japan service through their regular Didi app — that’s interesting since a ‘roaming’ strategy involving Lyft and others arranged years ago never came to fruition.

And yes, you did read correctly that taxi operators are part of the target audience. That’s because Japan doesn’t allow unlicensed private cars to operate as taxis.

That’s made the country a real challenge for Uber, which has held talks with taxi operators, and it also explains why one of the leading ride-hailing service in Japan — JapanTaxi — is backed by the taxi industry. JapanTaxi is even owned by an insider, Ichiro Kawanabe, who runs Japan’s largest taxi operator Nihon Kotsu and heads up the country’s taxi federation.

Working with taxi operators means Didi has a fleet management platform, as above, as part of its Japan-based service.

That concession on working with taxis doesn’t necessarily mean that Didi isn’t focused on widening the market by enabling “ride-sharing” with non-taxi drivers in the future.

Reuters reports that SoftBank supremo Masayoshi Son — one half of the Didi Japan joint venture — made some family scathing comments at an annual event.

“Ride-sharing is prohibited by law in Japan. I can’t believe there is still such a stupid country,” Son is said to have remarked.

Didi, of course, is playing things more cautious as it rides into Japan.

The company said that the country, which is the world’s third-largest market based on taxi ride revenue, “holds great potential as a market for online taxi-hailing.”

“There is earnest demand for more convenient urban and regional transportation services, especially in light of the growing population of senior citizens,” Didi added via a statement.

The Japanese expansion is another example of Didi’s push to internationalize its service beyond China in 2018. Last year, it raised $4 billion to double down on technology, AI and move into new markets, and this year it has come good on that promise by entering Mexico, Australia and Taiwan. While over in Brazil, it leaped into the market through the acquisition of local player and Uber rival 99.

The 99 deal was a particularly interesting one since Didi had previously backed the company via an investment. Didi didn’t say much about the mechanics of that strategy, but it has investments in ride-sharing companies worldwide, including Lyft, Grab, Ola, Careem and Taxify, which you’d imagine, like 99, could be converted into full-on acquisitions at some point in moves that would speed up that international expansion.


Source: The Tech Crunch

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