FUNDAMENTALS OF ENTREPRENEURSHIP (ENT300)

Individual Business Model Canvas

(30%)

NAME OF BUSINESS
GRAB

TYPE OF BUSINESS
GRAB COMPANY

PREPARED BY:

FACULTY & PROGRAMME : FACULTY OF COMPUTER AND

MATHEMATICAL SCIENCE
PROGRAMME : CS110 - DIPLOMA IN COMPUTER SCIENCE
SEMESTER :4

PROJECT TITLE : BUSINESS MODEL CANVAS

NAME : MUHAMMAD AZHAR BIN AB RAZAK

STUDENT ID : 2019181999

PREPARED FOR
NORLELA ABAS
 TABLE OF CONTENTS

No Contents Page

1.0 INTRODUCTION
1.1 Industry and service details 1
1.2 Founding 2
1.3 User 3
1.4 Service Description 3
1.5 Business Model 3
2.0 BUSINESS MODEL CANVAS
2.1 Key Partners 4
2.2 Key Activities 4
2.3 Key Resources 4
2.4 Value Proposition 5
2.5 Customer Relationships 5
2.6 Customer Segments 5
2.7 Channels 6
2.8 Cost Structure 6
2.9 Revenue Streams 6
3.0 Learning Outcome 7

Appendices 8
Business Model Canvas Template 9
 INTRODUCTION

1.1 Industry and service details

1.1.1General nature of company

Name of company :GRAB

Established on : JUNE 2012

Location : 8 countries, 351 cities and metropolitan areas
Nature of business : Sole Proprietorship

The Grab app assigns taxis and private hire cars to nearby commuters through a location-sharing system.
Each time the company enters a new market, they buy smartphones for drivers in countries that they
expand to, allowing those drivers to pay daily installments for the phone. The company makes money by
taking a cut of the booking fees. Although some taxi companies have tried to stop their own drivers from
using the app, Grab reached out directly to taxi drivers by signing them up at airports, hawker centers, taxi
queues, and depots. The company also educates taxi drivers on using the smartphone and their mobile app.
In addition to large cities, Grab has also tried to penetrate the markets of smaller cities.

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 1.2 FOUNDING

The idea of creating a taxi-booking mobile app for Southeast Asia, similar to those being pioneered in the
US, first came from Anthony Tan while he was at Harvard Business School. Motivated to make taxi rides
safer in Malaysia, Tan launched the "My Teksi" app in Malaysia in 2012 together with Tan Hooi Ling,
another Harvard graduate. MyTeksi was started with an initial grant of US$25,000 from Harvard Business
School and Anthony Tan's personal capital. In 2014, Grab moved its company headquarters from Malaysia
to Singapore.

GrabTaxi expanded to the Philippines in August 2013, and to Singapore and Thailand in October of the
same year. In 2014, Grab in partnership with HDT Holdings, introduced 100 electric taxis in Singapore to
form the biggest e-taxi fleet in Southeast Asia. In 2014, GrabTaxi further continued its growth and
expansion to new countries: first launching in Ho Chi Minh City in Vietnam in February, and Jakarta in
Indonesia in June. In May 2014, the company launched GrabCar as an alternative form of transportation
that uses personal cars instead of taxis through a licensed partner in an effort to overcome the lack of public
transportation during peak hours. In November 2014, GrabTaxi launched its first GrabBike service in Ho
Chi Minh City as a trial service.By 2015, GrabBike's motorcycle service rides had spread throughout
Vietnam and Indonesia. GrabBike also provides medical insurance for their passengers and drivers. In
February 2015, the company launched GrabCar(a service that provides a fleet of higher-end cars) in the
Philippines.

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 1.3 User

In May 2014, GrabTaxi said it had 1.2 million downloads. At around June 2013, it claimed to be doing one
booking every eight seconds, or 10,000 a day, representing sixteen-fold growth within a year. In November
2017, Grab reached one billion rides with 66 concurrent rides in one second across seven countries,
occupying 97% market share in the third-party taxi hailing market and 72% in the private vehicle hailing
market. The company also claimed to have two million driving partners, 68 million mobile app downloads,
and 3.5 million daily rides.In December 2018, Grab claimed to have served 920 million kilometers worth of
rides to its users that year.

1.4.Service Description

The Grab app assigns taxis and private hire cars to nearby commuters through a location-sharing system.
Each time the company enters a new market, they buy smartphones for drivers in countries that they
expand to, allowing those drivers to pay daily installments for the phone.

1.5.Business Model
Business model consist of ways to solve any company problem, company’s strategy and company
successful in order to strive for a maximum profit as well as fulfilling customer’s demand

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 2.1 BUSINESS MODEL CANVAS

2.2 KEY PARTNERS

Grab has a few key partner in order for the service to operate. One of them is having a
partner with a strategic alliance between non-competitors. This company have employee that
own a car for the services. It is estimated that there were at least about 6,000 employee of grab
that were involves in this service. The product is in form of service through an app ,the
employee use the app to find a customer and the customer pay the service to the employee fro
the services.

2.3 KEY ACTIVTIES

One of the activity that has been doing by Grab company is transportation. In the terms
of transportation service. Customer will order the driver from nearby places to pick them up and
the driver will be notified through the app. The driver will then pick the customer at their
destination and send them to the places they want to go. Upon arrive at the destination ,the
customer will then pay for the services. This relationships happen through app, the grab driver
and the customer.

2.4 KEY RESOURCES

There are a few key resources of Grab. The key resources that important the most
towards Grab is the car. Car is very important to complete the process of making the end
service of transportation .There are a strict rules for the car to be accepted as a Grab service’s
car. Effective 12 October 2019, all e-hailing drivers will have to comply with a set of
regulations laid out by the Ministry of Transport, this includes obtaining a PSV license, the need
to purchase an e-hailing insurance, annual vehicle checks, medical checks, and more. It is to
ensure the safety of the customer and the driver if anything bad ever happen.

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 2.5 VALUE PROPOSITION

This Grab service is different from other service such as taxi and bus because the customer does
not have to wait at a bus stop or beside the road for a taxi to arrive. It is more efficient and
convenient
form of service for both the driver and the customer and also it save up a lot of time rather than
waiting for bus to arrive at usual time. Beside ,the service are almost available at all the time and
can be found easily at all location.

2.6 CUSTOMER RELATIONSHIPS

There are also customer relationships that had been prepared by Grab towards customer.
It is by held at an affordable prices for everyone to apply for the service. Furthermore, Grab
Company always keep updating on what is news about Grab in terms of discount,promotion and
many more. This updates are going to held in Grab social media and the company’s websites. In
addition, Grab are not just keep updating about the service, but also willingly received any
feedback from the customer whether through online or face-to-face with Grab’s staff.

2.7 CUSTOMER SEGMENTS

There are also a customer segment that Grab’s focus on. One of them is in the terms
Demographic. Demographic segmentation are divides the market on the basis of demographic
variables like age, gender, marital status, family size, income, and many more. This is one of the
most common segmentation practices among the marketers. However, for Grabs, under the
terms of demographic, it is focusing on the range of age which in between ages of 18 years old
until 40 years old. The targeting age is starting from 18 years old are because, Grab are thinking
that people at this age are just enter college and in need of transportation and set its target until
40 years old because the people at this age usually are the people that work.

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 2.7. Channels

There are a few channels for Grab to let people know about their service. The service
usually be informed through television as an ads. They were also active on social media and
internet as their medium to channel the information about their service. The shirt that the

2.8.COST STRUCTURE

There are two main categories of cost structure which is value-driven and cost driven.
The focus of value-driven cost structures is to create more value in the service itself, not
necessarily provide the service at the lowest possible cost. On the other hand, cost-driven cost
structures focus on minimizing the costs of the service as much as possible. Grab are using both
structure as the cost structure. The service provided by Grab is cheaper than the taxi service and
also comfortable and relax ride for the customer. The car provided by the driver usually very
hygiene and clean and customer usually satisfied with the services provided for them.

2.9.REVENUE STREAMS

Every marketers will have their own revenue streams in order to maintain or to make
their customer loyal to them. As for Grab, Grab is really important especially during this time of
pandemic. They often advertise and stream their product on television, on internet and youtube.
They also often advertise their brand at bus stop and also at car.

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3.0.Learning Outcome

From this assignment ,I learn that strategy is important when starting a business. It explains how you will do
better than your rivals. And doing better, by definition, means being different. Organizations achieve superior
performance when they are unique, when they do something no other business does in ways that no other
business can duplicate. When you cut away the jargon, that’s what strategy is all about—how you are going
to do better by being different. The logic is straightforward: When all companies offer the same products and
services to the same customers by performing the same kinds of activities, no company will prosper.
Customers will benefit, at least in the short term, while head-to-head competition drives prices down to a
point where returns are inadequate. It was precisely this kind of competition—destructive competition, to use
Michael Porter’s term—that did in many Internet retailers, whether they were selling pet supplies, drugs, or
toys. Too many fledgling companies rushed to market with identical business models and no strategies to
differentiate themselves in terms of which customers and markets to serve, what products and services to
offer, and what kinds of value to create.

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 APPENDICES

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 Designed for: GRAB
The Business Model Canvas
Designed by: Date: Version:

Key Partners

Employer
(provide a car for t
operate)
Developer
(developed an app

Cost Structur

- cost-driven a
- cheaper p
- clean and