Singapore's Grab in talks to sell Thai unit stake to Central Group - sources

By Chayut Setboonsarng

 

A man walks past a Grab office in Singapore March 26, 2018. REUTERS/Edgar Su/File Photo

 

BANGKOK (Reuters) - Singapore-based ride-hailing firm Grab is in talks to sell "a decent-sized stake" in its Thai business to Thailand's largest retailer, Central Group, people with direct knowledge of the matter told Reuters on Thursday.

 

The size is yet to be determined though discussions have been ongoing for some time, said one of the people, who declined to be identified as the matter was private.

 

Grab said it would not comment on "rumours and speculation". Central did not respond to a request for comment.

 

Grab is interested in doing business with JD Central, a $500 million e-commerce joint venture that Central launched earlier this year with China's JD.com, one of the people said.

 

"It's natural synergy with Central," said the person, citing Grab's current food delivery service from Central restaurants.

 

Grab's operations in Southeast Asia's second-largest economy also includes ride-hailing and parcel delivery.

 

Central Group, owned by the billionaire Chirathivat family, also manages shopping centres and hotels across Thailand.

 

-- © Copyright Reuters 2018-9-27

I think it won't end well for the users.

 

Prices went already up significantly after Grab bought Uber here.

38 minutes ago, AtoZ said:

I think it won't end well for the users.

 

Prices went already up significantly after Grab bought Uber here.

In Thailand nothing ends well for the user.

I live and work in both Thailand and Vietnam. Grab Taxi Vietnam is fantastic. They are there in minutes in nice cars and are half the price of taxis. In Thailand the taxi mafia blockade Grab taxis. 

In Thailand I would prefer in principal to catch a clapped out public bus for 10 baht than be cheated by a Thai taxi driver who carries guns in holsters on the dashboard and machetes under the seat.

 

So first Uber gave up on the Thai market and then the Grab owner wants to get rid of it as well. That's a pretty clear message that the market here has some kind of very serious issue for this service.

 

1 hour ago, AtoZ said:

I think it won't end well for the users.

 

Prices went already up significantly after Grab bought Uber here. 

 

I just checked it last week when arriving at Phuket airport. Grab would have been more expensive than the official taxi stand guys, that's totally ridicolous as those are already overpriced as they have a complete monopoly and zero competition.

 

I've tried Grab Taxi at least a dozen times in Thailand and would really like to use the service. But somehow they manage ot be worse than the regular taxis which are already terrible. I don't find it acceptable to wait 30min+ for a taxi to arrive, not know where I am and calling for instructions even though he has GPS coordinates and then again not know. Their tracking software seems to be a bit buggy as well. And because I cancelled a few times when the car seemed to be stuck and never arrive, they force me to pay for the ride right away now via debit card and make it hard/expensive to cancel. It's just annoying.

Central Monopoly always looking to spread its tentacles everywhere. Grab went up in price, its hardly a compelling option. 

Central Monopoly always looking to spread its tentacles everywhere. Grab went up in price, its hardly a compelling option. 

Thailand doesn't have a cartel or regulation authority nor they a slightest idea of this approach. Corruption at highest level and the small man has to pay.
I may just add to your central group example the limited number of supermarket companies, 7-11, CP Group or PTT... The growing cancer of Thailand

Grab is not managed very well in Thailand, so if Central does owe a majority stake, I can only believe/hope that service will improve. Central has very good service and does strive to make their customers happy.

9 minutes ago, mike324 said:

Grab is not managed very well in Thailand, so if Central does owe a majority stake, I can only believe/hope that service will improve. Central has very good service and does strive to make their customers happy.

That's a very good point. Central Group knows how to manage its businesses very well. Some of us - for this kind of service - place at least as much value on promptness and safety as the cost. If Central take this opportunity seriously it could work out very well for all concerned.

Great news for motor taxi and tuk tuk drivers. They will get to watch muay thai all day now. Unless they start drive by shootings against the grab drivers 

1 hour ago, worgeordie said:

I don't know if this is connected to the October upgrade,

but i cannot even sign into my email accounts,using

SlimJet browser,have tried other browsers ,same result,

thats AOL and Yahoo,same company now,just a blank page,

but on my Win 7 machine no problem.

regards worgeordie

Did you try Chrome or Edge?

Like they do with everything else, the Thais will Thai-ify and ruin it. It will resemble nothing like the functional business that Grab has built and Uber before them. 

 

They'll run cartoon and dumbed down promotions like "Buy one ride 100 Baht, get 2 rides 200 Baht na kha!" 

Edited October 6, 20187 yr by Fex Bluse

On 9/27/2018 at 8:00 PM, CLW said:

Thailand doesn't have a cartel or regulation authority nor they a slightest idea of this approach. Corruption at highest level and the small man has to pay.
I may just add to your central group example the limited number of supermarket companies, 7-11, CP Group or PTT... The growing cancer of Thailand

Actually, the cancerous growths are everywhere. 

As the populations are easily dumbed down.