For the first time, Grab has revealed the amount of money that has been allocated for its business in Vietnam. The multinational ride-hailing and lifestyle service provider disclosed in a letter to Prime Minister Nguyen Xuan Phuc that it has poured more than US$100 million into Vietnam since it entered the country in 2014, according to a local news report. The letter did not include amounts for Grab’s revenue and profit from its business in Vietnam.
However, between 2014 and 2016, the company indicated that it had suffered a loss of VND 938 billion (US$40 million).
It has long been rumored that Grab is burning cash in its race against competitors in Vietnam, which include Go-Jek subsidiary Go-Viet; homegrown startups Fastgo, Aber, and Vato; as well as local taxi operator Vinasun.
KrASIA has been following Grab’s legal battle with Vinasun closely. Grab is appealing a court ruling that states the company must pay Vinasun US$206,000 in damages after Vinasun suffered “losses” due to Grab’s presence. The appeal will be heard this month.
Editor: Brady Ng