Thailand's Central Group confirms $200 million investment in Grab's local unit

By Chayut Setboonsarng

 

FILE PHOTO: The helmet of a Grab bike rider is seen during rush hour traffic in Jakarta, Indonesia, July 18, 2016. REUTERS/Iqro Rinaldi

 

BANGKOK (Reuters) - TksThailand's Central Group, the country's largest retail conglomorate, confirmed on Thursday it will invest $200 million in a local entity of Singapore-based ride-hailing application Grab.

 

Central Group, which owns department stores, restaurants, and hotel chains in Thailand, said in a statement it will "acquire a significant non-controlling stake" in the Thai entity.

 

Reuters first reported in September that the two companies were in talks over the sale.

 

The two companies will work together on transport, food and grocery delivery, and logistics, the retailer's executive chairman and chief executive, Tos Chirathivat, said.

 

"We look forward to collaborating together to revolutionise the retail and service industry," he said.

 

It is the first time a partner has invested in Grab's local business, Grab Chief Executive Anthony Tan told reporters at a news conference on Thursday.

 

"Central's $200 million investment is a significant local joint venture," Tan said, adding that Grab's operation in Thailand will expand beyond ride-hailing and food delivery.

 

"We are moving forward with e-commerce and logistics...We are going to enter online travel, (with) Booking and Agoda."

 

Travel giant Booking invested $200 million in Grab last year.

 

Tourism is a major contributor to Thailand's economy, which has lagged behind Southeast Asian peers.

 

Thailand saw a record 38.27 million tourists in 2018.

 

The deal came soon after Grab's Indonesian rival, Go-Jek, launched ride-hailing and food delivery operations in Thailand.

 

Central in 2017 launched a joint venture with China's second-largest e-commerce platform, JD.com, which backs Go-Jek.

 

Ride-sharing is not fully regulated in Thailand, with police occasionally fining drivers.

 

The market for ride-hailing services in Southeast Asia is expected to surge to almost $30 billion by 2025 from $7.7 billion in 2018, according to a Google-Temasek report.

 

-- © Copyright Reuters 2019-01-31

Well i doubt any Thai motorbike taxi dude is reading this.

I guess the taxi drivers won’t be shopping at Central stores anymore ????

Will there still be taxi rank in front of Central's stores ?  More important, does Central swing enough klout to encourage the taxi boys to make nice nice with Grab drivers?

7 hours ago, Redline said:

I guess the taxi drivers won’t be shopping at Central stores anymore ????

If they look at what Central Group actually owns they may not be buying much of anything anywhere.

 

http://www.centralgroup.com/brands/