Microsoft to invest in PE-backed ride-hailing platform Grab
Microsoft has made a strategic investment in Grab as part of a wider arrangement that will see it collaborate with the Southeast Asia-focused ride-hailing business on digital services.
The announcement comes two months after Grab said it had raised $2 billion in its latest funding round, achieving an overall valuation of more than $10 billion. The size of Microsoft’s investment in the company has not been disclosed.
The partnership between the two companies is intended to apply Microsoft’s machine learning and artificial intelligence (AI) expertise to Grab’s transportation, mobile payments, and online-to-offline service offerings. Focus areas include: facial recognition as a means of confirming driver and passenger identities; using natural language processing to provide real-time translation and chatbot services; and leveraging image recognition and computer vision technologies so passengers can take photos of their current locations and have those translate into addresses for drivers.
Grab also plans to integrate a range of existing Microsoft services, such as Azure for data and analytics, Outlook for calendar reminders, and Kaizala for large group communications and work management. In addition, the Microsoft rewards gift cards program will be linked to Grab’s loyalty program.
“This partnership signals a deep collaboration with Microsoft on an array of technology projects, including big data and artificial intelligence, that will transform the delivery of everyday services and mobility solutions in Southeast Asia,” said Ming Maa, president of Grab, in a statement.
The Southeast Asian company, which acquired Uber’s regional operation in March, claims its signature ride-hailing app has been downloaded onto more than 100 million mobile devices. Its fleet of 6.6 million drivers provides over six million rides per day through private car, motorbike, taxi, and carpooling services. Services such as food and package deliveries have been added to the ride-hailing platform, while GrabPay is the launchpad for the company’s financial services offering.
The most recent funding round was led by Japan’s Toyota Motor Corporation and also featured the likes of Ping An Capital, Oppenheimer Funds, Lightspeed Venture Partners, Macquarie Capital, and Mirae Asset-Naver Asia Growth Fund.
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