The news (extracted from The Information):
- Chinese online retailer JD has invested in Indonesian Uber rival Go-Jek, according to people familiar with the matter.
- JD made its investment as part of Go-Jek’s latest funding round which is expected to raise close to US$1.2 billion from investors also including Tencent.
- JD told Tech in Asia that it doesn’t comment on market rumors as company policy.
Why it matters:
- Competition between ride-hailing companies is fierce in Southeast Asia. Go-Jek appears to have cornered its home market, while Grab looks to have the edge over Uber in most other countries. Of the three rivals, Go-Jek has arguably done the most to diversify, moving into areas such as online payments and events ticketing.
- JD has come a little later to the proxy VC war being waged between Chinese corporates in Southeast Asia. Alibaba and Tencent – which is a majority shareholder in JD – have made numerous big-ticket investments in the region’s ride-hailing, bike-sharing, and ecommerce spaces.
- After supposedly missing out on a stake in Indonesia’s Tokopedia, JD was this week reported to be in talks to expand into the Malaysian, Thai, and Vietnamese ecommerce markets.
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