- Title: Ride-hailing firm Grab plans major investment in Vietnam - top executive
- Date: 26th August 2019
- Summary: SINGAPORE (AUGUST 22, 2019) (REUTERS) (SOUNDBITE) (English) GRAB'S PRESIDENT MING MAA SAYING: "And so we have a situation now where traditional banking, the marginal cost for traditional banking continues to grow over time, whereas the marginal cost for digital banking continues to decline over time. That's one of the powerful things about technology is, it is an incredibly deflationary force, and by using deflationary forces like digital banking, we are able to provide very similar sets of financial services at much lower cost than what traditional banks are able to provide."
- Embargoed: 9th September 2019 04:30
- Keywords: Singapore Grab banking service Vietnam business
- Location: SINGAPORE
- City: SINGAPORE
- Country: Singapore
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA005ATUS2A5
- Aspect Ratio: 16:9
- Story Text:Singapore-based ride-hailing firm Grab is set to invest "several hundred million dollars" in Vietnam where the company sees its next major growth market, just weeks after it unveiled a $2 billion plan in Indonesia.
The proposed investment is the latest example of a top-notch regional brand deepening its commitment to Vietnam, one of Asia's fastest growing economies. It also shows the eagerness of Grab, which has raised billions of dollars from investors to put its cash to work.
"We're very excited about Vietnam. We see very similar characteristics to Indonesia," Grab President Ming Maa told Reuters in an interview.
Grab and rival Indonesia-based Go-Jek are evolving from ride-hailing app operators to become one-stop shops for services such as payment transactions, food delivery, logistics and hotel bookings in Southeast Asia.
Grab, with its app on more than 160 million mobile devices across eight countries, has said its Indonesia investment aims to build a next-generation transport network and transform how critical services such as healthcare are delivered.
The Southeast Asia's biggest start-up with an estimated valuation of about $14 billion, is also betting on its payments business to fuel growth in financial services.
Southeast Asia's internet economy is expected to exceed $240 billion by 2025, a joint study by Google and Temasek Holdings showed in November, a fifth more than previously estimated, as more consumers use their smartphones to go online.
(Production: Pedja Stanisic, Angie Teo)
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