Uber said on Nov. 12 which a planned deal which has a consortium led by SoftBank along with Dragoneer Investment Group was moving forward. The consortium plans to inject $1 billion to $1.25 billion into Uber, along with buy up to 17 percent of existing shares in a secondary transaction.
SoftBank has also been a big investor in Uber’s rivals across Asia, including Southeast Asia’s Grab, China’s DiDi Chuxing, along with India’s Ola, as the item works to achieve founder Masayoshi Son’s vision of a future driven by artificial intelligence along with interconnected devices.
At the same time, ride-hailing companies have been competing fiercely across Asia to attract both riders along with drivers, with discounts along with promotions which have driven down profit margins.
“SoftBank will play a consolidating role,” said a source close to Singapore-based Grab. “SoftBank as a board director in both companies (Uber along with Grab) could fundamentally change the conversation.” The source declined to be named due to sensitivity of the subject.
SoftBank along with Grab declined to comment because of This kind of story.
At $68 billion, Uber is actually the most highly valued venture-backed company inside the globe. however the lofty valuation has come at the cost of a heavy hit to Uber’s bottom line, which the firm has said was necessary to establish itself in brand new markets.
“Doing a deal along with combining the two businesses in Southeast Asia makes a ton of sense,” said the source close to Grab. “He (Uber’s CEO) cuts his losses along with gets a stake inside the business which is actually via his perspective more than just ride-sharing,” the source said, referring to Grab’s foray into various other markets for digital or cashless payments.