Asia news roundup: Uber seeks taxi tie-ups in Japan, while Singapore deal faces scrutiny

The Singapore government handed startups a mixed hong bao at this week’s national budget / Photo credit: Nestor Lacle / flickr

Here are the top tech stories from the long Lunar New Year weekend, including new measures affecting startups from the Singapore government’s latest budget and plenty more news from the region’s ride-hailing sector.

Startup ecosystem

National budget heralds less generous tax breaks for startups (Singapore). The Singaporean government’s 2018 budget will cut corporation tax exemptions for startups from 100 percent of their first S$100,000 (US$75,915) of chargeable income to 75 percent. Finance minister Heng Swee Keat said that startups would still enjoy a favorable effective tax rate of 4.8 percent in spite of the revision, and encouraged entrepreneurs to make the most of various startup support initiatives offered by the city-state. (Tech in Asia)

However, the government did not expand goods and services tax (GST) to lower-value ecommerce transactions as anticipated. Heng indicated that GST on such imported goods is on the way, but the government will review international discussions over the issue before deciding on specific measures to take. However, from January 2020, Singapore will charge GST on imported services purchased online – potentially including some apps and content streaming platforms – and some businesses in these areas may need to obtain GST registration in Singapore if they have not already done so. The overall GST rate will be raised gradually from 7 percent to 9 percent between 2021 and 2025. (Tech in Asia)

Transportation

Zoomcar nets US$40 million in series C fundraise (India). The on-demand car rental platform raised the money in a round led by conglomerate Mahindra & Mahindra, with previous backers including Ford joining in. Fundersclub, Nokia, and Sequoia Capital are among the startup’s earlier investors. (TechCrunch)

Sony joins the ride-hailing race (Japan). The tech titan is joining forces with taxi firms including Daiwa to develop an AI-driven ride-hailing platform. SoftBank recently announced a similar partnership with Chinese ride-hailing giant Didi Chuxing, while automaker Toyota has invested in taxi operator Nihon Kotsu’s hailing app JapanTaxi. (Reuters)

dacosta / 123RF Stock Photo" width="750" height="563" />

An Uber-branded taxi in Moscow, Russia / Photo credit: dacosta / 123RF

Uber is also counting on partnerships with taxi companies to revive its fortunes in Japan. Uber CEO Dara Khosrowshahi suggested that the US firm’s “go-it-alone” approach to the country hasn’t worked. “It’s clear to me that we need to come in with partnership in mind, and in particular a partnership with the taxi industry here,” he said while on a visit to Tokyo. “When I asked the team why wasn’t our Japan business larger, I started learning the history of our approach to Japan, and it was an approach that frankly didn’t work.” (Bloomberg)

Meanwhile, Uber’s proposed hook-up with another taxi firm is still under the regulatory microscope (Singapore). The Competition Commission of Singapore said it will carry out further in-depth assessment of Uber and ComfortDelGro’s US$474 million joint venture deal, which the two companies announced in December, following the completion of its initial review. The agency said it has asked both parties to submit further information by March 5, after which it will assess whether the deal infringes Singaporean competition law. (Reuters)

And those rumors that Uber will sell its Southeast Asian business just won’t go away. The US company is preparing to sell to Singapore-based competitor Grab in exchange for a sizeable stake, CNBC reported based on information it had received from two sources with knowledge of the matter. A deal, and a timeframe in which to complete it, are yet to be agreed, but the sell-off would help Uber cut costs in the run-up to a potential IPO next year. (CNBC)

Media and entertainment

Toutiao headquarters in Beijing / Photo credit: Tech in Asia

Toutiao reportedly acquires Faceu (China). Personalized news portal Toutiao is reportedly paying US$300 million for Faceu, an augmented reality-based selfie app. Toutiao acquired Chinese video lip-syncing app Musical.ly last November in a deal rumored to be worth US$1 billion. (China Money Network)

Travel and hospitality

Fintech

Property and real estate