Booking Holdings (NASDAQ: BKNG), an online accommodations and travel e-commerce company, and Grab Holdings Inc have entered into a strategic partnership. Booking has invested US$200 million in Grab, and in exchange, the pair will conduct product cross offering, the company announced today.
In essence, Booking’s brands will have the ability to offer on-demand transport services through their apps, powered by Grab. Grab customers will be able to book accommodations across the globe powered by Booking.com and agoda.
Grab has raised over US$2 billion for its current round of financing and is on track to raise over US$3 billion by the end of this year, said the announcement.
"Grab has scaled impressively across Southeast Asia over the last few years…and we’re excited to partner with them to build even better travel experiences through technology," said Todd Henrich, senior vice president and Head of Corporate Development for Booking Holdings.
The partnership allows Grab users to book travel-related services through the app for the first time, and pay using GrabPay. The partnership comes as Grab is trying to reinvent itself as Southeast Asia’s everyday super app, offering ride-hailing, food delivery, parcel delivery and digital payments to millions in the region.
Grab has a presence in 235 cities in 8 countries and enables 8 million micro-entrepreneurs through its platform.
"The online travel market in Southeast Asia is set to nearly triple by 2025 and we see numerous synergies between travel and transportation that will allow us to capitalize on this huge opportunity," said Ming Maa, President of Grab said. "Booking’s investment into Grab is a vote of confidence in our continued ability to execute and expand into different O2O verticals, and roll them out across the 235 cities in which we operate.”
Booking offers online travel and related services in over 220 countries and territories through six primary brands, Booking.com, KAYAK, priceline, agoda.com, Rentalcars.com and OpenTable.
Grab is one of the most frequently used O2O mobile platforms in Southeast Asia, providing ride sharing, food delivery, shopping and mobile payment services.