If you are not from any Southeast Asian nations, and you happen to visit one, you better get Grab app installed in your phone. Because you would not find Uber there. Grab is Southeast Asia’s biggest ride hailing app. Its service includes ride sharing, taxi hailing, motorcycle taxi, food and goods delivery, as well as payments and home grocery.
Biggest ride hailing app and unicorn startup in Southeast Asia
Anthony Tan, backed up by one of Malaysia’s richest family, started it all. Hand in hand with his former Harvard colleague, Tan Hooi Ling (not related), he started with MyTeksi app 6 years ago. With huge infuse of investment from both Tans’ families, Grab grew up fast to the Southeast Asian market. It’s now the biggest ride hailing apps and unicorn startup company in Southeast Asia.
Now Grab reigns over 163 cities in 8 countries within Southeast Asian. The amount of users has doubled up within a year from 2017 to 2018. Accordingly, the number of ride booking also increased from an average of 2.5 million per day to roughly 6 million books per day. It’s also helped by Grab’s affiliation with online payment companies.
Elimination of Grab’s main competitor
In 2018, Toyota Japan invested $1 billion to Grab Holdings’ pocket. With that, the company acquired Uber in Southeast Asia. At the same time eliminating its’ biggest competitor. Uber now holds a 28% stake in Grab.
However, Grab still has another big competitor from Indonesia. Go-Jek, the country’s local ride hailing app is also growing fast. It started off as motorcycle taxi hailing apps and now it has followed Grab to its other services. Go-Jek recently received investment from Google, Tecent and Temasek. It now seeks to open its’ first international base in Myanmar.
Drivers and governments obstacles
Not only competitor, Grab also has the task to deal with its’ own drivers. Strikes and protests popped up in Vietnam, Myanmar and Indonesia. Moreover, the governments are yet to set policies for license and tax ride-hailing companies.
Meanwhile, Grab is not a profitable company just yet. It still lacks in revenue, compared to the investments it received. Grab needs to cut off its’ discount programs within two years. By then it will be able to raise its revenue. If the customers still willing to use the service without discounts.
