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Why Microsoft Is Investing in Ride-Hailing Firm Grab By Daniel Liberto | October 9, 2018 — 5:32 AM EDT
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Microsoft Corp. (MSFT) wants a slice of the Southeast Asia ride-hailing market.
In a press release, the Redmond, Washington-based company announced a strategic partnership with Grab, a Singaporean provider of transport services, food delivery and payment solutions.
Under the terms of their agreement, Microsoft will invest an undisclosed sum in Grab, reportedly worth about $200 million, according to the Financial Times. The two companies will also collaborate in areas such as big data and artificial intelligence (AI), while Grab will begin using Microsoft products, including Azure cloud computing service.
Microsoft’s latest investment supports its ambition to widen access to its technologies for ride-hailing services across the world. The U.S. tech giant, which in recent years invested in Uber and India’s Ola, said it wants to make AI, one of its biggest priorities, accessible to everyone.
The partnership also represents another important win for Microsoft’s cloud computing service. A wave of big customer wins have transformed Azure into a worthy competitor to Amazon.com Inc.’s (AMZN) Amazon Web Services, the market leader in the cloud space. (See also: Microsoft Now the No. 2 Cloud Supplier: Gartner.)
“Our partnership with Grab opens up new opportunities to innovate in both a rapidly evolving industry and growth region," said Peggy Johnson, executive vice president at Microsoft. "We're excited to team up to transform the customer experience as well as enhance the delivery of digital services for the millions of users who rely on Grab for safe and affordable transport, food and package delivery, mobile payments, and financial services."
Microsoft and Grab added that they will work together to develop new ways to verify passengers and drivers, using facial recognition technology with built-in AI at a time when user safety has come under threat.
Grab also plans to use Microsoft's technology to develop real-time translation services, more personalized offerings and improve the quality of its maps. Passengers will be able to book rides directly through the Microsoft Outlook application.
Microsoft is one of several new investors in Grab. The Singapore-based company has so far raised about $6 billion in total funds as of Aug. 2, 2018, bringing its valuation up to $11 billion, according to CB Insights. Japan’s SoftBank Group Corp. (SFTBF) is expected to invest $500 million in Grab as early as November, reported Reuters. (See also: Alibaba To Invest In Ride Hailing Startup Grab.)
Read more: Why Microsoft Is Investing in Ride-Hailing Firm Grab | Investopedia https://www.investopedia.com/news/why-microsoft-investing-ridehailing-firm-grab/#ixzz5TRoR0cZx
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