Grab Business Model & Revenue Model

1
Grab Business Model Revenue Model
2

• On-demand service apps provide affordable and
  efficient services. Anytime a user wants to order
  food, they can effortlessly do so with the help
  of food delivery apps. If you are struggling to
  hail a ride, taxi booking apps come to the
  rescue. We have begun to rely on on-demand apps
  for our daily activities. As many as about 22.4
  million customers are drawn to the on-demand
  market every year. The market value of on-demand
  apps is estimated to reach 335 billion by 2025.
  Grab, an on-demand app with headquarters in
  Singapore, provides essential services aiming to
  make our lives easy. In this blog, we will look
  into the Grab business model and revenue model.

3

• WHAT IS GRAB?
• Grab, a Singapore-based super app, began its
  operations in 2021. Initially, Grab offered only
  ride-hailing services. It then evolved into a
  super app offering a wide range of services, like
  payments, insurance, food, and grocery delivery.
  It acts as a platform connecting customers and
  service providers.
• Grab operates in eight Southeast Asian countries,
  including Singapore, Malaysia, Cambodia,
  Indonesia, and Myanmar. It acquired Ubers
  business in the region in 2018. Today, It is one
  of the most valuable brands, with a market
  capitalization of 12.90 billion.

4

• HOW DOES GRAB WORK?
• Grab follows an on-demand business model that
  connects customers with service providers. The
  Singapore-based super app provides a range of
  services. Users can satisfy their needs from one
  platform instead of using separate apps for
  booking rides and ordering food.
• In addition to letting users rely on the platform
  for their mobility and delivery needs, they can
  also use the app for financial services. Grab, in
  addition to enabling secure payments, offers
  insurance and investment services.

5

• GRAB BUSINESS MODEL
• The Grab business model works on the idea of a
  super app. The concept of a super app became
  popular after Chinas WeChat gained widespread
  recognition. The fact that users can access
  multiple services from a single platform has made
  it a preferred on-demand service app.
• The business model of Grab is simple. It lets
  users request services from the providers, acting
  as a platform connecting the two groups. It
  operates in over 500 cities and reports about
  34.9 million monthly transactional users.
• CUSTOMER SEGMENTS
• The business model of Grab involves three groups-
  customers, service providers, and businesses.

6

• Customers
• Customers are an integral part of the super app.
  They generate demand and directly help an app
  like Grab boost revenue. It enables them to
  request services from their app and matches them
  with a service provider. The app then bills them,
  for which they can pay using any of the multiple
  payment modes available.
• Service Providers
• Drivers and other service providers can partner
  with the super app and increase their earnings.
  Flexible working hours make it easy for them to
  choose working hours conveniently.
• Businesses
• By partnering with Grab, they can improve their
  visibility and engage with more users. This way,
  they can boost their sales and revenue.

7

• VALUE PROPOSITION
• Grab aims to offer convenience to users by
  letting them access services of a diverse range
  from a single platform.
• Riders can enjoy their rides in the vehicle type
  of their choice, as Grab provides multiple
  options for their convenience.
• Customers can expect to receive their deliveries
  on time as Grab offers reliable services.
• Grab offers discounts, helping consumers access
  the services at a far lower price. It boosts
  customer satisfaction.

8

• GRAB REVENUE MODEL
• Grab is one of the most valuable firms in
  Southeast Asia. Often called the Uber of
  Southeast Asia, it made a revenue of over 1.43
  billion in 2022.
• Let us look into the revenue model to understand
  how Grab makes money.
• 1. COMMISSION ON SERVICES
• It is a primary revenue source. Grab charges
  commission fees every time a user books rides on
  the app. When a customer orders food through the
  app, a certain percentage of the total order
  amount is charged as commission fees.
• Grab charges 16-25 for every ride booked on the
  app. It is in the range of 15-30 of the total
  value for food orders. Similarly, for every
  service the app offers, it charges a commission.

9

• 2. COMMISSION FROM GRABPAY
• Grab charges around 1 of the total charge from
  customers when they use GrabPay. A transaction
  fee is seen as another steady revenue stream. It
  has also introduced virtual prepaid in
  partnership with Mastercard. This collaboration
  enables over 100 million of Grabs registered
  users to use a virtual Mastercard. It has reached
  a vast population that no other fintech company
  has achieved.
• 3. REVENUE FROM GRABEXPRESS
• The revenue model of Grab includes income from
  GrabExpress also. GrabExpress lets users send
  packages, documents, mail letters, and more.
  Customers can use this service to send items in
  the weight range of 500g to 50kg. It charges some
  amount as delivery fees when a customer uses its
  courier service.

10

• 4. REVENUE FROM GRABADS
• GrabAds lets businesses connect with customers by
  advertising their products and services. It
  includes both online and offline modes. Firms can
  grow their user base this way.
• The revenue model of Grab lets in a significant
  income through GrabAds. It has generated more
  than 245 million by providing advertising
  services.
• INTERESTED IN BUILDING AN APP LIKE GRAB?
• The success of the Grab business model is proof
  of the existing demand for on-demand apps. Data
  shows the on-demand market will boom in the
  upcoming years. Several factors, including the
  changing preferences of customers as a result of
  the efficiency and convenience that an app like
  Grab offers, make such on-demand apps highly
  popular and successful.

11

• If you are also interested in building an app
  like Grab, now is the time to capitalize on the
  growing demand. We help you launch a business
  like Grab with our product. You can leverage our
  teams expertise and experience to develop the
  app.
• To KNOW MORE
• Link https//www.abservetech.com/blog/grab-busine
  ss-and-revenue-model/
• Website https//www.abservetech.com/uber-clone/
• TO CONNECT WITH US
• WhatsApp [phone]
• Skype Abservetech Support
• Email ID support_at_abservetech.com

12
(No Transcript)