Recently, news broke out that major Tech giant, Microsoft will be investing in Grab, a South-East Asian ride-hailing company, as part of a strategic partnership. On Monday, October 8th 2018, that Microsoft and Grab will join together for a partnership that looks like will benefit both parties. Peggy Johnson, executive vice president at Microsoft, told CNBC that Microsoft is fascinated with the tech companies that are emerging from Southeast Asia. Grab is a Singapore-based ride-hailing startup that has impressively expanded in just a short time in South East Asia. Even here in Indonesia, Grab is one of the biggest ride-hailing app.
Ride-hailing services are a great solution to people’s need of proper public transportation, especially in heavy populated nations within Asia. Traffic is a serious problem due to the ever growin; g population and it is a common problem of people in many different countries, this is proven by the existence of Uber and many other companies alike that emerged in the US, expanding to many other continents, Gojek, a local ride-hailing solution in Indonesia, and Grab that is currently focused in South East Asia.
It seems that Microsoft also saw how these companies are providing transport solution to the public. “It’s been amazing to watch what they have done with technology, in the way that they’ve applied it to solving problems for their customers.” Said, Peggy Johnson to CNBC.
Tech in Asia reported that Grab recently received a US$2 billion investment from Toyota. Their fund raising did not stop there, just last week it was reported that Grab will be raising another US$500 million, putting their value at around US$11 billion, while the company has already raised more than US$6 billion.
The partnership between Microsoft and Grab, will cover both ends strategically, as Microsoft is said to invest an undisclosed amount of funds to Grab, while the Singapore-based startup will be using some of Microsoft products, one of which being its’ cloud platform; Azure. CNBC also states that Grab will be collaborating with Microsoft on various tech projects in areas such as; artificial intelligence and big data, due to Microsoft’s expertise.
Reports also state that Grab plans to use Microsoft’s data analytics, fraud detection, machine learning and computer vision technologies and services to personalize the user experience. Passengers will also be able to book rides directly through the Microsoft Outlook application.
It seems like Grab’s future is brighter now with room to only get bigger in South East Asia. It’s no wonder that Grab Indonesia is improving and expanding day by day here, especially when it comes to expanding their services. We are finally seeing Grab’s other services at work, here in Indonesia, as their package and delivery services are finally more active than ever, along with its’ local partnership with OVO, for their integrated digital method of payment, which is now going head to head with Gojek’s unique method of payment; Go-Pay. It looks at seem, Grab is improving everywhere the company is at. We hope to see them venture out to more cities, providing citizens with even more helpful services in the future.
Best of luck to these two Companies on what it looks like as a promising and beneficial partnership.