New ride-hailing players challenge - but unlikely to overtake - market leader Grab

Opening Bell 🔔 is Tech in Asia’s free newsletter that brings you the biggest news and latest trends around Asia’s publicly listed tech companies. [Read from your browser]( Opening Bell 🔔 Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by [registering here](.  ---------------------------------------------------------------  Written by Simon Huang  Journalist  Hello {NAME} I recently tried calling for a ride using GrabShare Beta, the mobility platform’s carpool service which was introduced [last year](. I was asked to wait for six minutes. During that time, Grab’s app tried to match me with a driver as well as another passenger who I could share a ride with in exchange for a lower fare. Unfortunately, I wasn’t able to find a match and ended up booking a normal ride. I didn’t think too much of it. After all, I wasn’t in a rush and didn’t mind waiting. But some riders may be annoyed at the wasted time and failure to find a match. That’s the issue with innovation. While riders appreciate the wider range of options, things don’t always work out, leading some to view Grab negatively. But this hasn’t stopped the company from introducing new services. Apart from GrabShare Beta, the platform recently launched a new group-share feature that allows passengers to plan a trip together. This is part of the company’s efforts to attract and retain users who are able to access other up-and-coming ride-hailing services. As my colleague Samreen covers in this week’s featured story, some of these challengers include Be Group and GSM in Vietnam, as well as Tada and Ryde in Singapore. Despite the increased competition, Grab is going to be hard to beat. As Samreen’s piece notes, the platform was able to raise over US$16 billion in an environment of easy money that is now over. Niche players, however, might be able to turn the heat up on Grab in individual markets or look to countries like Laos where the super app is not present in. And one lesson in tech is never to assume that dominance lasts forever. A change in tech paradigms - for example, a widespread adoption of EVs - might be an opportunity for a new player to challenge the incumbents. We’d all welcome more innovation and affordable options. For example, as a dog owner who doesn’t own a car, I’d certainly welcome a more affordable option to GrabPets! -- Simon  ---------------------------------------------------------------  THE BIG STORY [Is Grab’s ride-hailing business future-proof?]( Could emerging competitors with their new commission models pose a threat to Grab's dominant position, or is the listed company's top spot secure? ---------------------------------------------------------------  3 TRENDS TO KEEP EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1️⃣ Seeing red in Vietnam: The Southeast Asian country has directed Netflix (NFLX, NDAQ) to discontinue its [video games business]( there by April 25, as the company lacks the required gaming services license. Global tech giants may be used to getting their way, but they’re also facing increasing scrutiny from governments and regulators, even in countries like Vietnam that are generally perceived to be business-friendly. However, this shouldn’t deter the streaming giant from investing in the market. It is planning to open an office in Vietnam, which would make it the first US tech major to have a physical presence there. An on-the-ground presence may also improve relationships with the local authorities. If major tech companies are serious about growing in Southeast Asia, more of them should follow Netflix’s example. 2️⃣ Land of the rising…AI?: Microsoft (MSFT, NDAQ) is making its biggest investment in Japan, with plans to invest [US$2.9 billion]( to upgrade its AI and cloud services in the country. The software company aso plans to train over three million people in AI in three years, which will provide relevant skills to workers and accelerate the country’s digital transformation. The two parties seem to be a good match. Faced with a declining population, Japan will have to lean heavily on increasing productivity to continue growing its GDP. Meanwhile, Microsoft will have more opportunities in what is still the world’s third-largest economy, even as the second largest, China, increasingly closes itself off to US tech enterprises. 3️⃣ Bain Cap is out: Bain Capital is [selling]( its entire stake in India’s Axis Bank (AXISBANK, NSE). Does this signal froth in the Indian market? Bain Capital first invested in Axis Bank as part of the latter’s capital raise in [November 2017]( at a price of 565 rupees per share. The investment firm previously offloaded some of its shares in November 2022, and again in December 2023. As of the end of trading on April 11, the bank’s shares were trading at 1,084 rupees per share. Its price-to-earnings ratio of 25.1x was higher than peers such as HDFC Bank, State Bank of India, ICICI Bank, and Indusind Bank. Is Bain Cap’s disposal of Axis’ shares a sign that it thinks they are fully valued? Or maybe this is just par for the course in private equity, with funds that have a limited lifespan.  2 EYE-POPPING NUMBERS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. - [3]( The number of markets Indian ride-hailing platform Ola is exiting as it focuses on India in the lead-up to an IPO. - [60%]( The year-on-year increase in ByteDance’s adjusted earnings (to over US$60 billion) in 2023, leading the Chinese parent firm of TikTok to overtake Tencent for the first time. THE ONE YOU DIDN'T SEE COMING We spotlight the story that had everyone talking and social media buzzing during the past week. Ma rallies Alibaba staff with rare letter: Alibaba (BABA, NYSE) founder Jack Ma has kept a low profile in the past few years, but he recently wrote to the company’s employees on the first anniversary of its restructuring. He [noted]( that over the past year, the company had transformed “from an organization with slow decision-making back to one that prioritizes efficiency and the market, making the company simple and agile again.” Ma also predicted that three years from now, “ecommerce will definitely not be as popular as it is today” but also thought that the company was “right on time” to ride on the AI era, which “has just begun.” The restructuring of Alibaba was meant to address some of these challenges, with the tech conglomerate splitting into [six separate business units]( which could each raise capital from the markets. But US-China tensions subsequently led the company to [scrap plans to spin-off its cloud business]( and it recently decided not to proceed with listing its logistics arm Cainiao. In contrast with Ma’s positive tone, company insiders have [criticized]( the firm’s inability to compete against rivals like Pinduoduo (PDD, NDAQ), harness AI developments, and break into western markets. Founders are perhaps the best-placed individuals to take a company through tough times. However, Ma is ultimately still on the sidelines, with no day-to-day role. It’s going to take more than words from Ma to get Alibaba - whose shares have fallen by over 75% from their October 2020 peak - back on track. ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](. - [Saigon Summit 2024 : Charting Vietnam’s Tech Future on May 30]( Saigon Summit will host discussions on Vietnam’s trending verticals, such as ecommerce, fintech, and electric vehicles, with VNG, VNLife, Razer will share their stories and insights. Join us as we discover the undeniable potential of Southeast Asia’s next tech hotspot. [Grab your tickets]( to secure the best savings before price increases on April 22 - while stocks last! - [Tech in Asia Conference Kuala Lumpur 2024 : Malaysia on The Rise on July 24-25]( Join us this July for a time of insightful panels, skill-building workshops, and exclusive interviews with top brands. First release tickets are available until April 22nd. Participating companies include AWS, Antler, Google Cloud, Odoo, Sunrate, and more. [Purchase a General Pass for just US$45]( (U.P. US$80) today! - [Product Development Conference (Jakarta, 25-26 June 2024)]( This year’s conference, themed around “scaling product innovation from startup to enterprise,” will deliver tailored insights for attendees at any stage of their business journey. [Secure your spot now.](  - [Tech in Asia’s Founders Meetup in Singapore on April 24]( We took the best of our 2023 Founders Meetup series and injected it into our all-new agenda this year. But don’t just take our word for it - join us at Hopscotch on April 24 to experience the excitement firsthand. P.S. We’re just getting started. We’re hosting many other Founders Meetups this year, so [stay tuned!](  - [Tech in Asia’s Founders Meetup in Vietnam on May 30]( Founders Meetup is returning to Vietnam as part of the official closing party of Saigon Summit! Unwind and connect with founders, startup leaders, and investors from across the region at this premier networking mixer. Hurry, [get your early bird ticket before promo ends on April 19!]( That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. Happy investing and see you next week! Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice. [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2024 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894