Floyd ‘Money’ Mayweather invests in Philippine Uber rival

Floyd ‘Money’ Mayweather (third from left) announcing his firm’s investment in U-Hop today. / Photo credit: U-Hop

It was billed as “The Fight of the Century” and “The Battle for Greatness.” Two of history’s most successful boxers – Filipino Manny Pacquiao and American Floyd Mayweather Jr. – finally faced each other in the ring in Las Vegas, after years of hype.

As it turned out, the May 2015 fight was largely seen as a disappointment – not least by the legions of Filipinos who saw their idol Pacquiao handed a defeat as a result of a judges’ decision.

Pacquiao – who currently serves as a senator in the Philippine congress – has become increasingly active on the venture investment scene, backing several Southeast Asian fintech and transport startups in recent years and even plotting his own cryptocurrency.

Not to be outdone by his erstwhile opponent, Mayweather’s brand and investment firm, The Money Team (TMT), has made its own Southeast Asia investment – in Manila-based ride-hailing app U-Hop.

What’s even more extraordinary about this funding is how U-Hop plans to use the capital it has raised.

It may sound counterintuitive, given that Uber has just exited the Southeast Asian market – leaving a big gap for local firms to fill. But a spokesperson for the startup told Tech in Asia that the firm is aiming to launch its services in the US – Uber’s homeground, where it dominates the market.

The spokesperson did not provide any more detail about the investment, but did say that TMT is the only disclosed investor. They added that the funding will be used for expansion in Asia and North America.

In March 2016, U-Hop revealed it had raised US$7.4 million in seed funding.

Grudge match

With Uber out of the picture following Grab’s takeover of its regional business, a number of Philippine ride-hailing competitors are emerging to challenge the Singapore-based firm’s dominance in the archipelago.

The Philippine Competition Commission has said that Grab now controls 93 percent of the domestic market.

Public reaction to the merger has been mixed. As in other Southeast Asian markets, consumers have expressed concern that prices will climb now that Grab no longer faces a large competitor.

There are already indications that the Singapore-based company wants to leave behind the “subsidy wars” that have marked its rivalries with Uber and Go-Jek. In the Philippines, Grab has further courted unpopularity by saying it will impose fines on users that cancel rides they’ve booked.