Grab’s teams take an approach that draws from scientific principles when solving problems, using observation, hypothesis formulation, testing and analysis in order to find solutions that meet their requirements. As needed they repeat this cycle until all issues have been effectively addressed.
Transport business suffered due to COVID-19 pandemic; GMV fell by double-digit percentages across various countries. But according to CEO Anthony Tan, they believe they’re on track for profitability.
How Grab Changed Transportation
Grab is an independent contractor aggregator that connects drivers, food and grocery delivery, merchants and more with each other through technology. With around nine million micro-entrepreneurs on its platform and using technological solutions to improve service quality and provide better access to customers.
Tan attributes his company’s success as a ride-hailing app in Malaysia to his in-depth understanding of local needs. According to Tan, “Our success can be traced back to always being guided by the belief that we should be good neighbors to our communities,” and making giving back and serving a priority – he even makes time to work alongside food vendors on his platform so he can learn more about running their businesses!
Grab is not only known for its charitable works, but also as an innovator who creates positive change through innovation. Their two flagship carpooling services – GrabShare and GrabHitch – play an instrumental role in alleviating congestion and pollution by encouraging more people to share rides together. Furthermore, Grab has reduced their carbon footprint through opting for eco-friendly hybrid and fully electric vehicles, as well as optimising booking systems to minimise wasteful booking processes and save on fuel consumption.
Grab has gained widespread praise from both investors and competitors alike for its impressive success, rising from $36 billion in valuation to $40 billion and now offering services such as food delivery and financial products that account for more than 50 per cent of gross merchandise value.
Grab’s international presence presents it with unique challenges, yet in just the past year alone it has implemented multiple initiatives to combat fraud and protect users, such as an alert system alerting drivers of suspicious passenger behavior; working closely with police forces in busting cybercrime syndicates; and initiating an anti-phishing campaign.
But it is the firm’s ability to adapt to changing conditions that has made them stand out. Over the last year alone, they reduced prices during peak-hours and adjusted driver incentives so as to prevent them from raising prices. They have also used machine learning, customer driver feedback, satellite imagery, and physical verification of high frequency locations to identify problem spots within communities they operate within.
The Future of Transportation
Grab is a mission-driven company focused on bettering lives across Southeast Asia through technology. However, its founders understand that one business alone cannot address societal problems like poverty, infrastructure issues and unemployment; as such they are creating an expansive platform designed to address all customer needs including transportation, food delivery and payments.
Success for this company lies in part with its deep localization and understanding of its market. For example, its low-cost motorbike rides were invaluable in relieving traffic congestion and income challenges in the region, benefiting both drivers and passengers alike. Furthermore, its approach to corporate citizenship is driven by Tan’s Christian values – his leadership principles emphasize servant leadership and social impact which help guide its decision-making processes.
Grab is working tirelessly towards its vision of making daily commutes simpler by collaborating with cities, transit agencies and private companies to realize its shared mobility dream. They are currently piloting a marketplace for bus travel – and envision a future where riders can easily book rides using multiple modes of transport such as cars, bikes and taxis to reach work before transitioning seamlessly onto buses for their return home journeys.
Grab intends to provide financial services through its platform, including loans within its app and transfers with e-wallets. Furthermore, Grab plans on providing banking to those without bank accounts — an obstacle many in Southeast Asia face — by expanding its digital ID program which enables users to verify and sign documents online.
Grab places user feedback at the forefront of its product design process, from mobile apps and call centers, driver check-ins, surveys, focus groups and third party data sources. Intentionally high goals set for teams ensure they remain challenged yet are realistic enough that people can reach them with hard work.
Ridzki and his team at Grab are not afraid of taking risks and making mistakes as part of their approach to innovation and addressing regional problems quickly and efficiently. Their willingness to push beyond traditional limits enables Grab to move faster while meeting its lofty goals.
The Ride-Hailing Revolution
Ride-hailing’s growing popularity is altering how people travel. According to a UT Austin study (PDF), ride-hailing has helped reduce fatal drunk driving crashes and overall vehicle miles traveled while providing opportunities for marginalized populations to overcome geographic isolation and access jobs, education and healthcare services more easily. But while ride-hailing presents many advantages over other forms of transport, its challenges must also be considered when considering its many potential uses.
One of the key concerns with ride-hailing is its displacement of transit ridership, leading to more cars on the roads and greater environmental impacts. Another drawback of ride-hailing is that it often costs more than public transit – both issues which can be solved through innovative solutions.
This podcast features Anthony Tan, CEO and cofounder of Southeast Asia’s dominant ride-hailing service Grab. Anthony shares his vision for transportation’s future as well as how his team at Grab is meeting these challenges head on.
Grab has gone from being a small taxi booking app to become one of Southeast Asia’s market-leading O2O consumer apps and open ecosystems. Through hyperlocal business strategies and partnerships, Grab offers services including transportation, food delivery, payments/financial services/banking products as well as mobile loans all from within its single app.
Tan credits his upbringing and education for instilling his entrepreneurial spirit, though he admits the road hasn’t always been smooth for himself or the millions of riders who have downloaded Grab. He recalls facing challenges such as convincing drivers to embrace technology and paying for smartphones so they could use Grab.
Grab is now a multibillion-dollar company operating across eight countries, striving to become the region’s first unicorn by tapping their vast network of drivers, customers and partners – including motorcycle taxis and delivery services – as a vehicle for success. Their efforts have not gone unnoticed: Fast Company named them second most innovative company for 2019 while CNBC listed them four consecutive times on their Disruptor 50 list for being at the cutting edge of innovation.
The Future of Food Delivery
Grab’s business model goes beyond ride-hailing; it also encompasses food and grocery delivery services. Grab’s e-commerce platform allows consumers to discover and shop for restaurants, retailers, and brands on its platform; consumers use its app to pre-purchase vouchers, make restaurant reservations, order self-pickup meals from delivery drivers or dine in.
These services aim to bring convenience, efficiency, and affordability to local communities. They address real societal needs such as providing low-income commuters access to food and other essentials at reasonable costs – complementing rather than competing with government public transportation systems.
Asia offers plenty of space for these services to flourish. As one of the world’s most diverse and densely populated regions, each country and city presents unique market dynamics – which is why Grab emphasizes localization through products like GrabDurian that reflect regional tastes and preferences.
Grab applies this same strategy when developing its other offerings, like food delivery service. Here, GrabTaxi drivers leveraged to provide delivery services – creating an win-win scenario where drivers get additional work while customers save time.
Grab’s new offerings don’t change its commitment to transport services; revenue and profit continue to increase despite decreased demand caused by Covid-19; in fact, it remains its fastest-growing segment.
At the core of their success is an exceptional user-centric approach: Ridzki emphasizes this point as she notes: “We listen relentlessly and observe their behaviors,” according to her company’s mobile app, call centers, social media pages, and in-person focus groups collect feedback on behalf of its users – then analyzes this data before implementing appropriate changes accordingly.
Grab adjusted its OKRs during the pandemic to reflect its impact; this didn’t change its strategic mission but did shift priorities; consequently, teams stayed focused on their goals but made adjustments in execution and measurement to meet company commitments.
