Grab Case Study

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Case Study - Grab

Grab is one of the largest ride share company in the industry. Although they are similar to some competitors in the ride sharing industry in aspects of using an app to provide services, they differ in other ways like providing a variety of different transportation methods from bikes to buses, predominantly providing services in South East Asia.

GRAB COMPANY OVERVIEW

STRATEGY

  • Grab adapt to each of the markets it enters like operating Grab bike in Indonesia where two-wheelers are very popular and adopting a cooperative approach in the Philippines where regulators have had issues with Uber's.
  • Grab worked on customer retention by creating a reward program that allows clients to earn points that can be redeemed in various ways, like airline discounts, free fast-food, and free rides.
  • The company introduced more than 10 on-demand ride-hailing services like taxis, private cars, car-pooling, bicycle sharing, shuttle services, and bike taxis.
  • To extend their financial services, Grab released its QR-code based mobile payment app, GrabPay in 2016.
  • With GrabPay client can make payments for Grab rides, in-store purchases, food services, and money transfers.
  • Grab concentrates on hyper-local strategies to drive growth in various markets.
  • Local strategies of Grab vary in every region, like GrabTukTuk and GrabRemorque in Cambodia, and the GrabTrike for the Philippines region.
  • Problem-solving at the local level is also a baseline of the company, instead of creating a one size fits all model for all regions — allowing for cash payments, instead of exclusive electronic payment, was one important level of localized markets.
  • Grab received $8.6 billion in venture investments from large players like Japan’s SoftBank Group, Toyota Motor, Chinese ride-hailing giant Didi Chuxing, and Microsoft.
  • In southeast Asia, 40% of residents don’t utilize bank accounts; and 90% of resident don’t own credit cards.

KEYS TO SUCCESS

  • Grab offer multi-faceted approach to consumers on various fronts like food services, payments services, financial services, transportation, and health care.
  • Grabs success is partially due to having the broadest services in the area, with a variety of vehicle types from motorbikes to coaches — the company can retain customers and keep increasing their customer base.
  • Due to their funding, they have been able to attract top tech talent from well-known companies like Google, Facebook, and Twitter. This has facilitated them to build an excellent product. 
  • The acquisition of Uber allowed Grab to gain important and growing equity stakes in the South East Asia market.
  • Because of the acquisition, the company will assume control over Uber's operations and investments in the region, areas including Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

OPERATING MODEL

  • Grab operates as a ride-hailing service with quick booking services for a variety of transportation modes through a single mobile app.
  • Transactions method: the customer inputs a starting point and a destination into their application; this locates drivers in the area — interested drivers then accepts the reservation and proceeds to pick up the passenger. The passenger is transported to their destination — the time the passenger would make payment for the ride.
  • Grab is a leading ride-hailing platform that offers the fastest booking service for taxis, private cars, and motorbikes through a mobile app.
  • The rate for the services is charged on a per KM basis.
  • Grab then charges the driver between 16% (Philippines) — 25% (Malaysia) of the rate the customer paid as a commission for using their services to obtain customers.
  • To maintain value proposition Grab fosters an infrastructure system and incentives program to retain dedicated drivers.
  • Their company specifically looks to provide a safe transportation platform including screening all drivers and vehicles, education and code of conduct, include safety features, support services, and insurance.
  • The company offers a variety of choices to meet all needs like taxis, cars, bikes, and other vehicles, all reasonably priced, provide door to door service to accommodate people special needs, operate with availability anytime transportation is needed, create partnerships with the drivers like car ownership assistance, preparations for retirement, and classes for the drivers children.
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