New ride-hailing players challenge – but unlikely to overtake – market leader Grab

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IN FOCUS

In today’s newsletter, we look at:

• Why Grab will be hard to beat despite new competitors in ride-hailing
• Netflix’s video game business in Vietnam, Microsoft’s AI investment in Japan, and Bain Capital selling its remaining stake in India’s Axis Bank 
• Jack Ma praises Alibaba’s restructuring efforts, but words alone won’t save a floundering share price 

Hello reader,

I recently tried calling for a ride using GrabShare Beta, the mobility platform’s carpool service which was introduced last year.

I was asked to wait for six minutes. During that time, Grab’s app tried to match me with a driver as well as another passenger who I could share a ride with in exchange for a lower fare.

Unfortunately, I wasn’t able to find a match and ended up booking a normal ride.

I didn’t think too much of it. After all, I wasn’t in a rush and didn’t mind waiting. But some riders may be annoyed at the wasted time and failure to find a match.

That’s the issue with innovation. While riders appreciate the wider range of options, things don’t always work out, leading some to view Grab negatively.

But this hasn’t stopped the company from introducing new services. Apart from GrabShare Beta, the platform recently launched a new group-share feature that allows passengers to plan a trip together.

This is part of the company’s efforts to attract and retain users who are able to access other up-and-coming ride-hailing services.

As my colleague Samreen covers in this week’s featured story, some of these challengers include Be Group and GSM in Vietnam, as well as Tada and Ryde in Singapore.

Despite the increased competition, Grab is going to be hard to beat. As Samreen’s piece notes, the platform was able to raise over US$16 billion in an environment of easy money that is now over.

Niche players, however, might be able to turn the heat up on Grab in individual markets or look to countries like Laos where the super app is not present in.

And one lesson in tech is never to assume that dominance lasts forever. A change in tech paradigms – for example, a widespread adoption of EVs – might be an opportunity for a new player to challenge the incumbents.

THE BIG STORY

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2 Eye-popping facts

The one you didn’t see coming