ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

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Rewarded with a smile

` COMPANY PROFILE

Company name: Grab

Categories: Car sharing, Ride sharing, Transportation

Headquarter Regions: Asia- Pacific (APAC), Association of Southeast

Asian Nations ( ASEAN), Southeast Asia

Founders: Jun 2012

Founders: Anthony Tan, Tan Hooi Ling

Also Known As: Grab Taxi, My Teski

Legal name: Grab Holding inc

Hub Tags : Unicom

IPO Status: Private

Company type: For profit

Contact Email: Support.sg@grab.com

Phone number: +00656655000

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Contact person:

AUTHONY TAN (CEO and JOHN CHUA (CFO)

Co-Founder)

MING MAA
(President)

HOOI LING TAN( Co-

MARK PORTER(CTO) Founder
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1. Type and purpose

Grab is a profit organization. According to the interview, as of June 18, 2018, A Journalist
reported that Singapore-based ride-sharing giant Grab has exceeded 1 billion USD in yearly
revenue. However, he told the Chinese reporter “The business is not yet considered profitable”
, because they currently invest heavily in financial services and have not considered
“profitability issues”

On the other hand, Grab also is a private company. Unlike UBER competitor, In an interview in
February with Grab's Nikkei Asian Review, Anthony Tan said “Offering securities was not a bad
way but it would not IPO this year, maybe Grab stock was listed the first time in 2023”
According to CB Insights, Grab has valued at $ 14 billion and is the largest unicorn startup in
Southeast Asia. Recently, the company said it plans to raise $ 2 billion this year from various
investors including Soft-Bank Group.
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VISION

During 6 years of operation, Grab always sets

goals, visions, and strategies to bring customers the
most satisfaction and affirm Grab’s position in the
world. Here are updated vision, value, mission and
objectives of Grab:

 Grab shares its vision of being the daily app

for Malaysian consumers
 Grab wishes consumers in Malaysia and
South-East Asia use it for a daily app where users are able to travel, eat delivery, and
pay for the daily essentials through one Grab app in the future.
 Immediate plans include the introduction of Grab food and the expansion of Grab Pay
services to serve Malaysian’s daily need beyond ride-hailing
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MISION

1. Travel is easier for everyone

 In addition to just ride-hailing, Grab broader vision of

mobility is to enable a multi-modal future more seamlessly
serving the need. Consumers can mix different transport options and match them
according to their travel preferences and budget. With better integration that have a
public and private transportation options in one platform, consumers can choose to
seamless payment for multiple modes of transports . For example, they can shuttle bus
on demand , they continue journey on transport, finally take a Grab to their final
destination
2. Improve the lives of partners

 With a single mobile wallet enabled on-demand transportation, food and delivery,
consumers will have their most important daily needs met. Driver have opportunity and
flexibility to drive, deliver or offer services for consumer through the Grab platform and
easy to make money

3. Create a safest transport platform

 Safety is Grab’s top priority. We focus on drivers training, setting safety features in
applications, such as home safety training and close cooperation with local authorities
during the operation.
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OBJECTIVES (2018 – 2020):

 Profit target of Grab is increasing revenue from markets to reach 50% and more;
 Grab Platform is a suite of APIs that designed to integrate partners with Grab.
 Grab will add to the Grab app more daily services. Grab-Fresh, a supply service on
demand, will be launched this month in beta
 The new Grab interface as everyday Super App comes alive. Services and information
that are relevant exactly when you need them

 To accomplish these goals, Grab has been constantly innovating. Grab is now partner of
FPT; Microsoft to develop smart transport solutions for Vietnam and improve the
innovation and digital services in Southeast Asia

Regarding charity activities, Grab has a lot of activities for the community. Here, Grab
organized many meaningful activities such as organizing blood donation activities,
giving scholarships to disadvantaged children and children in remote areas.
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2.Size and scope

As of December 31, 2018 Grab’s total
assets were more 1 billion USD. This revenue‘s
technology company has increased double (500
million to 1billion). According to CEO’s Grab,
the main reason is some businesses in mature
market have been profitable.

Almost the information about Grab’s

total liabilities and Owner's equity is
Undisclosed. However, during more than 3
years operation in Viet Nam, Grab continuously
rewarded drivers to carry out the big
promotion hoes at low prices.

Grab Vietnam was founded in 2014 under Vietnamese business law with 20 billion
VND capital. Since starting business, Grab continuously reported losses. In 2014, revenue was
1.5 billion dong, loss was 51.7 billion dong. In 2015, Revenue was 33.7 billion VND, loss was
441.8 billion VND. In 2016, Revenue was 193 billion VND, loss was 444.7 billion VND. In 2017,
revenue was 758 billion VND, loss was 788 billion VND.
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Grab now operates across eight countries in 225 cities and boasts over 100 million
downloads of app. What began as a taxi-booking app to help drivers and riders safe has evolved
to include reservations for private cars, shuttle busses, food, parcels and grocery delivery
services. It also launched mobile payment service Grab-Pay in 2016 to link all of its services
together, making services payment more convenient and encouraging user to make purchase
in-store in exchange for reward points. For 2018, the company is expected to generate revenue
of 1 billion USD

In 2018, After acquiring UBER Southeast Asia, Grab began expanding new services,
aiming to become a daily "super-application" of the area's people
 comparison chart between Grab’s market and its
competitors
` in Southeast Asia in 2018

According to the chart, we can easily see that Vietnam is the market with the highest
profit for Grab. This is understandable. Because is transportation in Vietnam, it is established
based on the needs of Vietnamese people first and adheres to the goal of improving
Vietnamese value. Infrastructure is also very focused in Vietnam market when Grab has
invested more than 100 million USD and attracted more than 135.000driver partner
nationwide. Grab currently covers all provinces and cities, with 3 offices based in Hanoi, Da
Nang and Ho Chi Minh. The management board and Driver partner are always equipped with
the most advanced working equipment, creating the most comfortable environment, so that
company is very suitable for Vietnamese people who want to have a good incomes and the
quality of the life
 SERVICES

Grabbike helps to connect Grab-Car connects Grab-share allows customer

directly between customers
who need to travel and 2
wheeler motorbike drivers
(motorcycles).
can choose Grab-Car 4 seats
individuals with a car and or Grab-Car 7 seats
customers want to travel depending on travel needs.
by 4-wheel vehicle.

Taxi booking service (4 or 7 Grab’s motorbike delivery Grab-Food is a food / drink

seats depending on service that insures your delivery service located
customer needs) commodity in the safe way through Grab application

 As of November,2018, it was reported that 54% users selected Grab-Food were

the most frequently brand among the food delivery services in Ho Chi Minh city.
Also, according to the announcement of another market research, Grab-Food is
 better than two competitors, Now-Food and Go-Food about the consumer
satisfaction. The general satisfaction level on 3 applications is respectively 4.46;
4.31; 4.1
 The scale of food delivery market in Viet Nam is 143 million USD in 2018 and
growing up 16% per years. We can estimated revenue in 2023 can be up to 411
million USD
 Furthermore, This company is a leader of transportation in Viet Nam where the
market value is 500 millions USD
FUNCTION:
Foundamental
BOARD OF
Sub-Divisions Level
DIRECTOR

CFO TAX
CEO

AUTHONY COO Finance

TAN &Accounting

Marketing
DIRECTOR Design

CTO
Engineering

DIRECTOR
Co-Founder
Diversity

Legal
Revenue
DIRECTIOR
Success
&Partner Global
Marketing
Product
DIRECTIOR

Bus Dev
&Partnership

Communication

HR

Public
 Grab has functional structure. In a functional structure, CEO is the highest authority of the
company. CEO has the right to decide the problems under the duties and powers prescribed by the Law
and the Charter of the Company. IT, Finance, operations and Marketing are divided into smaller group
by areas of specialty. Similarly, the company’s top management team typically consist of several
functional structure head (such as the chief financial officer and chief operating officer). The director is
the manager who manager the daily production and business activities of the Company, appointed by
the Board of Director.

Grab has multinational structure, too. The group’s headquarter are located Singapore with a
range of activities in Southeast Asia.

This company structure is also very consistent with the group's goals. The multinational
structure helps the group expand its market to more countries. This will help Grab easily achieve revenue
growth target of 50% in 2019. The division of the group into separate department, the way Grab
contributes to the community and society is very diverse (such as Thank-you day for drivers or TET
Holiday). As of January, 2018, Grab contributes 5.000 VNĐ to help unlucky children and older homeless
with each completely ride. The event has attracted more 100.000 drivers, one of the biggest fundraising
activities. The companies operate independently in each field, bringing profit in different products

Functional structure has both advantages and disadvantages. A Functional structure’s advantages
are that:

1. Employees in group are divided due to departments, they have opportunities to train skills. As a
result, the productivity improve as soon as.
2. Unaltered roles and responsibilities, FM easily estimates employee performance
3. Reduce communication channel because employee often report to FM
4. There is no stack of work, Each employee has only 1 boss,1 Job .Loyal employee feel safe when
they doing just one Job

However, it also has a lot of disadvantages:

1. Employees feel lazy because their work must be repeated

2. Incorrect work performance assessment system is likely to cause conflict
3. Costs is higher for talented employees
4. There is a fragment because FM is only interested in the department that he manages. Links easy
to close
5. Communication in other departments is hard. As a result, it will reduce creative and flexibility in
organization. Furthermore, teamwork is extremely poor.
6. Knowledge of employees about what happens in outside their department work
7. The structure organization is not flexibility, so it is hard to adapt to change
8. This is an obvious example for bureaucratic structure so that decision-making is easy to delay
9. Normally, FM makes a decision without the persistence of team member, therefore, when
implementing, it will be difficult to organize.
10. When the Functional Organization Structure large organization is difficult to adapt and difficult to
manage, the workload will be bottleneck in FM.
11. Each department has its own goals, so it is easy to be distracted with organizational goals.