Grab Thailand Prioritizes Revenue Growth and Sustainability Initiatives for 2023
Grab aims to enhance its market presence and revenue streams by engaging diverse consumer groups and expanding innovative services.
Grab Thailand has announced its strategic focus for the year 2023, which emphasizes sustainability, market expansion, affordability, retention, and technological innovation.
Chantsuda Thananitayaudom, the newly appointed country head of Grab Thailand, stated that the company intends to solidify its market leadership in Thailand while driving business growth.
With a commanding 46% market share, Grab holds a significant position in a market valued at approximately US$4.2 billion in gross merchandise value.
This places it ahead of Lineman at 40%, ShopeeFood at 7%, Foodpanda at 5%, and Robinhood at 2%.
Notably, Thailand ranks as Grab's second-largest market.
The company has set a vision for the year titled 'Lead with Purpose,' focusing on various areas, including sustainability initiatives.
Grab's electric vehicle (EV) program has already facilitated the adoption of more than 10,000 EVs among its drivers and riders, with plans for further expansion.
Earlier this year, Grab partnered with BYD to vary access to up to 50,000 BYD EVs for its drivers across Southeast Asia, including Thailand.
Additionally, Grab Thailand introduced a 'Drive-to-Own' program that includes a 60-month loan plan with no down payment and daily instalments specifically for EVs. Furthermore, the company is addressing food waste by piloting a reduction initiative.
In an effort to engage new demographics, Ms. Chantsuda highlighted plans to target Gen Alpha and Baby Boomers while continuing to serve its established customer base, primarily Gen Y. This includes introducing new features such as family options that allow core users to book rides for family members unfamiliar with the Grab app.
Grab is also set to enhance its presence in the international tourist market through sponsorship of significant events and festivals.
The expansion of affordable ride-hailing options will include both GrabCar Saver and GrabBike Saver services, which are currently extending from major cities into secondary markets, aiming for nationwide coverage.
Ms. Chantsuda noted a fivefold growth in GrabCar Saver services in key cities and a fourfold increase in GrabBike Saver.
In the food delivery sector, Grab plans to highlight campaigns featuring time-sensitive discounts that align with meal times.
To support its merchant partners, the company will focus on medium-sized sellers with financial services featuring a maximum loan ceiling of 10 million baht.
Ms. Chantsuda remarked that financial services have become a profitable aspect of Grab's business model, and the company is focusing on enhancing its ecosystem by leveraging data analytics from riders and merchants.
Mobility and delivery services are noted as continuing major revenue sources, along with business-to-business advertising, which has experienced an 80% increase in its customer base.
Major advertisers include sectors such as banking, cosmetics, and electronics.
The average order size within the company remains at 200 baht, while orders in business contexts tend to average around 600 baht.
This year, Grab plans to roll out advanced booking for airport pickups, currently being piloted in Phuket, allowing users to schedule rides linked to their flight itineraries.
Additionally, the company is developing GrabExecutive, a new luxury limousine service aimed at premium users, with a target launch in 2025.
A recent study from the Thailand Development Research Institute indicated that Grab Thailand's business activities generated an economic impact of 179 billion baht in 2023, accounting for approximately 1% of Thailand's GDP.
Chantsuda Thananitayaudom, the newly appointed country head of Grab Thailand, stated that the company intends to solidify its market leadership in Thailand while driving business growth.
With a commanding 46% market share, Grab holds a significant position in a market valued at approximately US$4.2 billion in gross merchandise value.
This places it ahead of Lineman at 40%, ShopeeFood at 7%, Foodpanda at 5%, and Robinhood at 2%.
Notably, Thailand ranks as Grab's second-largest market.
The company has set a vision for the year titled 'Lead with Purpose,' focusing on various areas, including sustainability initiatives.
Grab's electric vehicle (EV) program has already facilitated the adoption of more than 10,000 EVs among its drivers and riders, with plans for further expansion.
Earlier this year, Grab partnered with BYD to vary access to up to 50,000 BYD EVs for its drivers across Southeast Asia, including Thailand.
Additionally, Grab Thailand introduced a 'Drive-to-Own' program that includes a 60-month loan plan with no down payment and daily instalments specifically for EVs. Furthermore, the company is addressing food waste by piloting a reduction initiative.
In an effort to engage new demographics, Ms. Chantsuda highlighted plans to target Gen Alpha and Baby Boomers while continuing to serve its established customer base, primarily Gen Y. This includes introducing new features such as family options that allow core users to book rides for family members unfamiliar with the Grab app.
Grab is also set to enhance its presence in the international tourist market through sponsorship of significant events and festivals.
The expansion of affordable ride-hailing options will include both GrabCar Saver and GrabBike Saver services, which are currently extending from major cities into secondary markets, aiming for nationwide coverage.
Ms. Chantsuda noted a fivefold growth in GrabCar Saver services in key cities and a fourfold increase in GrabBike Saver.
In the food delivery sector, Grab plans to highlight campaigns featuring time-sensitive discounts that align with meal times.
To support its merchant partners, the company will focus on medium-sized sellers with financial services featuring a maximum loan ceiling of 10 million baht.
Ms. Chantsuda remarked that financial services have become a profitable aspect of Grab's business model, and the company is focusing on enhancing its ecosystem by leveraging data analytics from riders and merchants.
Mobility and delivery services are noted as continuing major revenue sources, along with business-to-business advertising, which has experienced an 80% increase in its customer base.
Major advertisers include sectors such as banking, cosmetics, and electronics.
The average order size within the company remains at 200 baht, while orders in business contexts tend to average around 600 baht.
This year, Grab plans to roll out advanced booking for airport pickups, currently being piloted in Phuket, allowing users to schedule rides linked to their flight itineraries.
Additionally, the company is developing GrabExecutive, a new luxury limousine service aimed at premium users, with a target launch in 2025.
A recent study from the Thailand Development Research Institute indicated that Grab Thailand's business activities generated an economic impact of 179 billion baht in 2023, accounting for approximately 1% of Thailand's GDP.
