Grab and Didi combined are now likely worth as much as Uber

Photo credit: Jonathan Kos-Read.

Uber still holds the title as the world’s most valuable private tech company, but competitors are catching up.

Uber’s rivals in China and Southeast Asia already nearly match the US firm’s current estimated valuation. Uber operates globally though it has retreated from some markets, most recently Russia.

Investors seem bullish on ride-hailing opportunities in China and Southeast Asia – and that it’s Didi and Grab who will reap the benefits here.

Grab and Didi’s most recent valuations combined are worth US$48.5 billion.

Didi Chuxing, born out of a merger of China’s two top ride-hailing firms in 2015, was last valued at US$44.5 billion pre-money, according to Crunchbase data.

Didi is among the investors in Grab’s recent capital raises, betting on the latter’s ability to defeat Uber in the Southeast Asian ride-hailing market. Grab is surpassing Uber in the region in monthly active user counts and other metrics.

Grab’s own pre-money valuation sits at a reported US$4 billion and earlier this week announced it’s expecting a US$2 billion investment, though the firm hasn’t confirmed valuation figures.

If you add India’s Uber rival Ola (worth US$$3.6 billion) and Lyft (worth US$6.9 billion) – Didi also invested in these – the combined value of the firms already exceeds Uber’s, whose own valuation looks like it’s in decline.

Uber’s valuation cut

Uber’s last reported pre-money valuation was US$59 billion in 2016. The more recent investments didn’t disclose this data.

But The Information suggests that Uber’s multiple scandals, leading up to the resignation of CEO Travis Kalanick, might have shaved off (paywall) almost US$10 billion of its peak valuation – leaving it worth roughly US$50 billion.

Of course, the frontlines of the global ride-hailing war aren’t as simple as Uber versus the rest.

In a surprising move, Didi Chuxing acquired Uber China (paywall) last year. Blurring the lines even further, SoftBank, which invests in Didi, Grab, and Ola, is said to be considering taking a stake in Uber (paywall).

The Information suggests Uber might consider selling its Southeast Asian business (paywall) to Grab, as it would help the US firm conserve its cash to fight battles elsewhere. However, it argues, the situation isn’t as clear cut as it was in China and Russia, because Uber still commands relevant market share in the region, and in some Southeast Asian more than others.

We’ve reached out to Uber and Grab for comment.

This post Grab and Didi combined are now likely worth as much as Uber appeared first on Tech in Asia.

from Tech in Asia https://www.techinasia.com/ber-grab-didi-valuations
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