FanFic: Uber X MyTeksi (aka GrabTaxi)

THE CONTENT OF THIS POSTING IS MERELY A PERSONAL SPECULATION, a speculation I made simply because my mind keeps running around the excitement of seeing more money invested into ASEAN companies.

We recently heard about the Series C funding that was closed for MyTeksi (also known as GrabTaxi). Over the last 12 months it has raised a total of US$90 million from its Series A, B and C round. So this is where I begin to think – what is next for MyTeksi (besides the huge expansion plan they have)? How will its investors, which includes Vertex who went in at Series A and Tiger Global Management who recently joined the party, exit and get the multiples they are so looking forward to? I am quite sure not many knows the answer and we will have to wait for the big announcement when it is the right time.

As I was saying, I am supposed to do a bit of speculation here, so this is what I am speculating – MyTeksi be acquired or merge with Uber.

Before ellaborating further let’s take a look at the funding rounds of both Uber and MyTeksi:

Uber X MyTeksi

Source: Crunch Base and various tech articles online. I do not own the data!

Without going into details of the comparison between Uber and MyTeksi, what I am seeing here is that:

  • both Uber and MyTeksi has been winning their investors’ hearts, in large amount of $$$
  • MyTeksi has been more aggressive in their fundraising plans, considering that all 3 rounds of funding happened in a single year.

From the observations above, I extrapolate that MyTeksi could be in the game of valuation chase so that they can be acquired or go through a share swap at a price that is lucrative for the investors. The follow on question should be “Who will be the buying party?” – my guess is Uber.

I believe all that is happening to MyTeksi will somehow benefit Uber, mostly on pushing up the valuation of such business models. So at the end of the day, we are not only seeing competiton between Uber, EasyTaxi, MyTeksi, Taxi Monger etc. But this is also a form of “collaboration” through you-up-your-valuation-so-I-will-up-mine approach.

A couple of reasons why I think Uber would love to join forces or acquire MyTeksi:

  1. MyTeksi is still ahead of Uber in conquering ASEAN, whereas Uber is strong in ex-ASEAN markets, so this provides inorganic growth to Uber;
  2. Uber can then include Taxis into its fleet, joining the expensive cars that they have been using – creating a GIANT taxi company;
  3. Given the recent government pushbacks of some ASEAN countries, it would make more sense for Uber to acquire/work with a local player such as MyTeksi.

So here you go, my speculation based on my imaginative brain. Again, all speculation without serious research nor inside information. In short, just another rant from me.

Til next time.


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