Covid-19 has hit Singapore's coast and Grab strikes back.
The app giant has reduced its workforce by more than 5 percent to around 360. Despite this setback, it emerged from the pandemic as Southeast Asia's most valuable company, valued at $ 14 billion.
Grab CEO Anthony Tan said Grab is being prepared for a future where users will likely work from home.
"Food delivery has become the norm, food delivery is growing very quickly, cashless payments are growing very quickly, so these behaviors, with or without vaccines, have permanently changed and we have benefited."
Refocusing on food, finance
In the Southeast Asian region, over 650 million people in the market were confined to their homes. When the user bans came in, Grab scaled back its plans for the travel and hospitality industries.
Grab is away from travel and hospitality. In the 2020 screenshot of the app's homepage, the options for tickets, hotel and travel planner are noticeably missing.
Instead, subsections are displayed for services that are in the foreground during a pandemic, such as: B. Insurance.
Screenshots / Photo credit: Vulcan Post
As the demand for travel and transportation for Grab sank, over 150,000 riders jumped on the ship and joined the thriving grocery industry as Singapore's acclaimed Grab Riders.
Cashless payments and the delivery of groceries have also increased rapidly.
Grab recently launched the Autoinvest service to stimulate spending on the platform. With this service, users can invest in every transaction they make through Grab and get an annual return of around 1.8 percent.
Online transactions through services like GrabPay have skyrocketed. The introduction of loans tailored for small businesses also capitalizes on the financial needs of entrepreneurs during the pandemic.
Grab's financial services expanded to include asset management, insurance, and credit. The app also applies for an online banking license in Singapore.
Grab tightens his cords, but Services Falter
Grab currently employs over 9 million drivers, dealers and agents.
The superapp is focusing on profitability again by being "crazy and microscopic in terms of cost," says Anthony.
This is good news for Grab, but disappointing for users. For one, Grab subscriptions are much less attractive than they used to be.
In April, the app quietly pulled the plug on a popular monthly grocery subscription that was just S $ 9.99 and included 50 coupons for free delivery.
Photo credit: mothership
Grab also offered a "Daily Value Plan" that offers a 15 percent discount on trips through 25 travel vouchers for S $ 35 per month. Compared to the old offers, the current subscription plans are sorely lacking.
The current Grab RideSavers Pack has been criticized for its low value and only effectively offers S $ 0.80 off each ride. However, the new Grab Foodie Pack is more rewarding and effectively offers S $ 3.73 off delivery.
Image Credit: Seedly
Given that grocery delivery is a more profitable option during Covid-19, the relative value per subscription package makes sense.
It's hard to blame a company for stepping up operations during a crisis. especially for a giant like Grab, which has enough market penetration to offset the offerings that are limiting its users.
"When times are good, everyone wins market share," says Anthony. “When the tide turns, the best companies are the quickest to react and the quickest to correct their business.
Selected image source: grave