Uber’s Southeast Asian rival Grab is set to receive a large amount of funding from Japan’s SoftBank and Chinese ride hailing company Didi Chuxing.
It is believed that the cash injection will raise as much as $2bn for the Singapore-based company, making it the most valuable startup in Southeast Asia – according to The Wall Street Journal, citing sources.
Telecoms giant SoftBank has previously invested $250m in Grab. And it has not shied away from other ride hailing investments – handing out $210m to India’s Ola and $100m to Brazil’s 99.
In addition to its investment in Grab, SoftBank may also be set to take some shares in Uber with shareholders and the board – led by early Uber backer Benchmark – eyeing potential investors to offload some of their shares in the often-controversial company, reports Bloomberg. However, despite the San Francisco-based firm’s eagerness to get SoftBank onboard, the Japanese company has no plans to invest in the Uber, according to a person close to the company.
The desire for Uber shareholders to get rid of their shares shows that the company’s difficult 2017 is showing little sign of recovery so far. Despite high profile departures and new additions, Uber is still caught up in various lawsuits and scandals, and some investors may simply see the company as a sinking ship.