The rivals of Uber are strengthening over time. Uber news exclaimed that investors are funding the transporter’s competitors. A number of ride sharing enterprises have recently been injected with large sums of money, increasing their fundraising to $5,800,000,000. As these emerging rivals received funds, they have found out that their valuations have sky rocketed and are now worth nearly $20,000,000,000 combined, compared to Uber’s current $51,000,000,000.
Uber news today disclosed that the recipients of funds include People’s Republic of China’s Didi Kuaidi Joint Co., Singaporean transporter named GrabTaxi Holdings Pte. Ltd. and the Indian based Ola Cabs. Managing partner of China focused tech fund All-Stars Investment Ltd., Richard Ji, has stated that local companies tend to benefit from their knowledge of local regulatory matters. Regulatory issues have proved to be major issue of concern for the North American ride sharing company, as it needs to battle with local cab monopolies and invest in an unclear legal environment.
Uber breaking news affirmed that Investors, such as Mr. Ji, believe local cab operating organizations managed by entrepreneurs, who are known for maintaining good relations with local officials and are viewed as national champions, can build these relationship better than the San Francisco based company. One of the companies founded by a local businessman, Anthony Tan, is the Singaporean taxi operating firm. Mr. Tan has stated that he thinks it is significant for his organization to cooperate with regulatory bodies and abide with local laws.
The Singaporean transporter has launched a GrabBike service in a number of Asian countries, including Vietnam, Thailand, and Indonesia to offer bikes to riders, which is a popular mode of transportation across the Southeast Asian region. Many financiers, such as Tiger Global Management LLC and Japanese Soft Bank Corp., which funded the Southeast Asian transporter, are already investing in Ola Cabs and Didi Kuaidi. They are interested in pledging billions of dollars in capital to help these firms offer discounts to riders and enhance their operating networks.
Industry professionals have shared the perspective that the funding decisions of the Asian investors would threaten the interests of Uber. It is most likely that the capital inflows would improve the motivation levels of the drivers of rivals.
Uber’s officials should now take measures to lure investors otherwise it might fail to retain its position in the highly competitive transportation market. This might require reconsideration of its strategies and plans to move ahead. And acquire funds to boost itself forward.