Professional Documents
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Business Opportunity (2019184227)
Business Opportunity (2019184227)
NAME OF BUSINESS
GRAB
TYPE OF BUSINESS
GRAB COMPANY
PREPARED BY:
STUDENT ID : 2019181999
PREPARED FOR
NORLELA ABAS
SUBMISSION
DATE 20 JAN 2021
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TABLE OF CONTENTS
No Contents Page
1.0 INTRODUCTION
1.1 Industry and Service Description 1
1.2 Founding 2
1.3 User 3
1.4 Service Description 3
1.5 Business Model 3-4
2.0 BUSINESS MODEL CANVAS
2.1 Key Partners 8
2.2 Key Activities 8-9
2.3 Key Resources 9
2.4 Value Proposition 9
2.5 Customer Relationships 10
2.6 Customer Segments 10 - 11
2.7 Channels 11
2.8 Cost Structure 11
2.9 Revenue Streams 12
Appendices 13
Business Model Canvas Template 14
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INTRODUCTION
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.
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
2.1 BUSINESS MODEL CANVAS
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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.
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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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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