SINGAPORE (BLOOMBERG) – Disruptions with Grab Holdings’ app dragged on for a second day as the Singapore-based ride-hailing and delivery giant worked to recover from one of its worst service failures.
Some users in countries including Singapore, Malaysia and the Philippines were still reporting problems using the app more than 24 hours since outages started occurring.
Grab, preparing to go public in one of the largest Spac mergers, reiterated on Wednesday (Nov 17) that “core services” had been restored but issues remained.
Millions of people across South-east Asia rely on Grab for car and scooter rides as well as meal deliveries and digital financial services. The service disruption comes just weeks before Grab is preparing to merge with Altimeter Growth Corp, the US special purpose acquisition company of Brad Gerstner’s Altimeter Capital Management.
Grab has postponed the US$40 billion (S$54.3 billion) deal – announced in April and one of the largest-ever mergers with a Spac – to the fourth quarter as it works on an audit of the past three years’ accounts. The company reiterated last week it expects the deal to complete this quarter.
Grab operates in more than 400 cities in eight countries in South-east Asia. It is the dominant player in the region of about 650 million people, though competition is intensifying from rivals such as Gojek, which merged with e-commerce company PT Tokopedia to bulk up. Grab is also competing against Delivery Hero’s Foodpanda and Deliveroo as well as new entrants such as AirAsia Group in the region.