Grab invests $250m in Indonesian startups to assert dominance

Ride-hailing platform Grab has announced plans to invest $250m (£194m) in Indonesian startups over the next three years through its Grab Ventures firm as the company attempts to secure its dominant position in Southeast Asias largest economy.

While rival service Go-Jek has already expanded from its initial remit to online payments and mCommerce, Grab boasts tech giants like Didi Chuxing and SoftBank Group among its backers, and managing director for Indonesia Ridzki Kramadibrata claims that Grad has established a dominant position when it comes to ride-hailing.

“We hold 65 per cent of [Indonesias] ride-hailing market, as based on total rides and transactions,” said Kramadibrata. “And it wont stop there, our market share is increasing.”

According to Kramadibrata, Grab holds the majority market share in 137 across Indonesia, compared with Go-Jeks roughly 50, and he is confident that the firm will maintain its lead.

The firms investment plans will focus on services that can be integrated into its existing platform, expanding the services functionalities. Grab Ventures will focus on startups in both Series A and B, and is planning to start funding rounds later this year, with an initial focus on healthcare and food delivery as well as digital payments and automated processes.

A recent report by Google-Temasek estimates that ride-hailing services in Southeast Asia are expected to grow from 2017s $5.1bn in gross merchandise value to $20.1bn by 2025. Grab recently secured $2bn in funding from investors including Toyota, and has also announced plans to introduce to provide an omnichannel marketing platform.