Grab goes where no Uber has gone before—Myanmar

Southeast Asian ride-hailing powerhouse Grab is now launching in a country where no Uber has driven yet -- Myanmar.

Grab, which has expanded rapidly since its launch in Malaysia in 2012 -- is now in 35 cities across Southeast Asia.

Myanmar marks the first new market for the company since its launch in Indonesia in 2014.

The company has launched a trial of its ride-hailing service in Yangon, Myanmar's biggest city, and it is working with a "small group" of taxi drivers. The trial is expected to scale up "gradually" so Grab can test and improve its service in the city.

Downtown Yangon traffic. Credit: CHAN NAING/EPA/REX/Shutterstock

The move is in line with Grab's desire to be Uber's main rival in Southeast Asia, where the ride-hailing market is projected to grow to about $13 billion and 28.7 million active riders each month by 2025, from $2.5 billion and 7.18 million active riders in 2015.

Uber may also enter Yangon, according to multiple reports from Reuters and the Wall Street Journal, but no timeframe has been given on Uber's entry into the city. An Uber spokesperson told the Wall Street Journal that it will "look forward to introducing" its ride-sharing technology in Myanmar "very soon." It is currently hiring for two positions in the country, according to TechCrunch.

Yangon, has a population of about 5.21 million people and approximately 50,000 taxis.

"In some countries, there has been controversy between taxi associations and Uber, but in Yangon there is no taxi association and it is a good stage at which to start an Uber system," Phyo Min Thein, Yangon's chief minister, was reported as saying.

The city does already have ride-hailing startups of its own, like Hello Cabs and Oway Group. Myanmar has had vibrant growth in its internet businesses after the country emerged from military rule.

There were fewer than 10,000 Internet users in Myanmar before 2007; the country now claims to have over 39 million Internet users.