ECO162 - Grab Holdings Inc

FRI
9
ECO162
Microeconomic
Groupmates:
Aleeya Safiya (2020484506)
Dewi Balqis (2020654176)
Noor Rezza Atiq (2020203472)
Zamirul Afzan Hafidz (2020823542)
new
The idea of creating a taxi-booking

mobile app first came from
Anthony Tan
GrabTaxi was started with an initial

grant of US$25,000 from Harvard
Business School and Anthony Tan's
personal capital
Singapore based transportation

company that was an originally
founded in Malaysia and moved its
headquarters to Singapore.
headquarters to Singapore.
It utilizes smartphones cloud-base

technology to provide the right
hailing and logistics services, food
delivery and courier service
They provide safety rules that can

make foreigners safer in travelling
At around June 2013, it claimed to

be making one booking every eight
seconds
The company also claimed to have

two million driving partners, 68
million mobile app downloads, and
3.5 million daily rides
Product & Services
GrabTaxi
Product & Services
GrabTaxi
• It has introduced more than 10 on-
demand ride-hailing services
• For example, taxis, private cars, car-
pooling, bicycle sharing, shuttle services,
and bike taxis
Product & Services
GrabTaxi
and bike taxis
Product & Services
GrabTaxi
and bike taxis
Product & Services
•
GrabPay
Grab launched its QR-code based mobile
payments service, GrabPay, in January
2016.
• This payment service, besides accepting
payments for Grab rides, it can also be
used while making in-store purchase, food
delivery, and fund transfer.
Product & Services
•
GrabPay
2016.
Product & Services
•
GrabPay
2016.
Product & Services
GrabFood
• Grab officially launched its food delivery
business, GrabFood, in May 2018
Product & Services
GrabFood
Product & Services
GrabFood
Product & Services
GrabFresh
• They launch a grocery delivery service,
GrabFresh, in July 2018
• GrabFresh, consumers can select from a
wide selection of products. As , the
company said to be offering over 20,000
grocery items.
Product & Services
GrabFresh
grocery items.
Product & Services
GrabFresh
grocery items.
Product & Services
More
• In April this year, Grab added four new
industries
• hotel booking, on-demand video
streaming, ticket purchasing and trip
planning
Product & Services
More
• In April this year, Grab added four new
industries
• hotel booking, on-demand video
streaming, ticket purchasing and trip
planning
Market structure before The Market Structure
acquisition comprised of
oligopoly with similar market
shares and hence called as a
duopoly.
Being in a monopolistic position, there
is no longer any incentive for Grab to
give general discounts to its riders and
Grab’s acquisition of Uber means a change in a subsidies to its drivers.
market structure from duopoly to monopoly
Amidst widespread speculations of a
change in Grab’s fares structure, they
The acquisition will allow more control announced on its website on 29 March
over pricing and will ultimately lead to 2018 that the fare structure would
higher car rental rate. remain unchanged.
There will be less discount and promotions

Economic Problems They launched ride-sharing
The riders face a lotservice as an instant
of problem
P
Solve Fundamental
messagingtoplatform
contacttotheir
allowpassengers
quick chats. between
drivers and passengers through the app.
Grab Food said customers

Unclaimed who customers
orders and do not show up or
P claimcancellation
their items may face penalties
of GrabFood on their
orders.
account, including suspension.
Economic Problems The riders face a lot of problem
P
Solve Fundamental
to contact their passengers.
They launched ride-sharing service as an instant

R messaging platform to allow quick chats between

of problem
P
Solve Fundamental
messagingtoplatform
contacttotheir
allowpassengers

P claimcancellation
orders.
to contact their passengers.
Economic Problems
Solve Fundamental
Unclaimed orders and customers

P cancellation of GrabFood orders.
Grab Food said customers who do not show up or

R claim their items may face penalties on their account,
including suspension.
of problem
Solve Fundamental
P messagingtoplatform
contacttotheir
allowpassengers

P claimcancellation
orders.
me of
them. MEETIN
G THE
option WA N T S
mers AND
allet,
NEEDS
OF
CONSU
MER
it was very inconvenient for the
customer to pay their bills and some of
them may not bring any cash with them. MEETIN
Grab launches Grab Pay, Asia’s first
numberless card.
G THE
provides a highly secure payment option WA N T S
for millions of under banked consumers
in the Southeast Asian market
AND
As an extension of the Grab Pay wallet,
NEEDS
the details of the card are stored OF
securely within the Grab app.
CONSU
MER
• customers urged the Grab company to
reconsider theirvery
it was driver’s qualification.
inconvenient for the
• they provide new to
customer training programme
pay their bills and some of
to reskill them
and upskill
may notdriver-partners
bring any cash with them. MEETIN
who intend tolaunches
continueGrab driving for afirst
Grab
longer term
numberless card.
Pay, Asia’s
G THE
• The driver will learn
provides to be
a highly a safe
secure driveroption
payment WA N T S
and whatfor it takes
millionstoofprovide a goodconsumers
under banked AND
service toincustomer.
the Southeast Asian market
As an extension of the Grab Pay wallet,

NEEDS
the details of the card are stored OF
securely within the Grab app.
CONSU
MER
Managing
Consumer behaviour is
Consumer behaviour is
the study of how individual Consumer
the study of how individual
customers, groups or
customers, groups or Behaviour
organizations select, buy,
use, and dispose ideas,
goods, and services to
satisfy their needs and Marketers expect that by
satisfy their needs and Marketers expect that by
wants. understanding what causes
wants. understanding what causes
the consumers to buy goods
and services, they will be
able to determine—which
products are needed in the
products are needed in the
marketplace
marketplace
Managing
Consumer Marketers expect that by
Marketers expect that by
understanding what causes
Behaviour understanding what causes
Consumer behaviour is products are needed in the
Consumer behaviour is products are needed in the
the study of how individual marketplace
the study of how individual marketplace
satisfy their needs and
satisfy their needs and
wants.
wants.
Grab surveyed consumers in the region
to find out what people in Southeast Asia
Managing
envision Grab to be like Consumer
Behaviour
majority of the 500 consumers who
responded wished for a one-stop,
everyday app that complements their
daily lives.
GrabFood is a major milestone in their

journey to becoming the everyday app
for consumers.
serve every palate and craving and

provide a platform for food vendors to
come online and reach a wider customer
base
Managing Grab surveyed consumers in the region
to find out what people in Southeast Asia
Consumer envision Grab to be like
Behaviour
majority of the 500 consumers who
responded wished for a one-stop,
everyday app that complements their
daily lives.
GrabFood is a major milestone in their

journey to becoming the everyday app
for consumers.
serve every palate and craving and

provide a platform for food vendors to
come online and reach a wider customer
base
A single unit of Supply is a
driver who is Online and Idle
A passenger checking fares

for a ride using the app
considered as a single unit
of Demand
passengers who are closest

to the driver have a higher
chance of getting a driver
than other passengers.
W h y t h e r e ’s a d i ff e r e n t
f a r e i n d i ff e r e n t b u i l d i n g
The demand for grabs has been steadily increasing,

while supply has been stable. When the quantity required
exceeds the quantity available, a shortage occurs. Our top priority
is to get you a ride as quickly as possible. This is what we refer to as
"ride allocation." Surge, sometimes known as "dynamic pricing,“
is a tool for better allocation.
during rush hour, wet weather or in more remote locations -

rates “surge” or increase to attract more drivers to come to
you.
THE COMPETITIVE MARKET OF GRAB HOLDINGS INC
• Grab is also known as a front runner and it operates in more markets
than Gojek does.
• Grab creates products and abilities to maintain consistency

in supporting their product's quality.
• They are consistent with the price given for every service.
• In Malaysia, it is said that Grab doesn't have competitors in

the market except for Gojek which is only operating in
Indonesia.
• Tries to fulfill the customers needs of wanting fast

response from drivers when they book a car easily.
• To prove their uniquenes from other companies,

Grab created Grab Gerak for people with
disabilities to make them feel comfortable along
the ride and Grab Bajaj for people who just
finished shopping from the market and they
need a ride home.
HOW GRAB HOLDINGS INC COPE WITH
COMPETITION AND ENVIRONMENT
• The Grab app has multiple features like hotel
booking, buying meals and other services that is
convenient and is the perfect customer service
experience.
• They aim to optimize customer satisfaction and
comfort while using the app.
• Grab Car doesn’t calculate the journey by time
but by distance and includes the travel
journey map in the app so that the
customers could see where they are
heading.
MANAGING COST & REVENUE
Grab collects a fixed 20% commision from

Grab collects a fixed 20% commision from Grab
the fares that the drivers receive so the 80%
the fares that the drivers receive so the 80% the
goes rightfully to the drivers and to be fair, Settle consistently with the quality of
goes rightfully to the drivers and to be fair, tr
this leads to the driver to be able to live a their products and prices of fares.
this leads to the driver to be able to live a en
sustainable life because of low fare costs
sustainable life because of low fare costs
than a standard taxi.
than a standard taxi.
Grab collects a fixed 20% commision

Grab pays attention to the consistency of
from the fares that the drivers receive so
the number of drivers and passengers,
the 80% goes rightfully to the drivers Settle consistently with the quality of their Mak
Settle consistently with the quality of their training and finding more drivers to
and to be fair, this leads to the driver to products and prices of fares.
products and prices of fares. ensure the probability of successful
be able to live a sustainable life because
travelling.
of low fare costs than a standard taxi.
ion
ve so Grab pays attention to the consistency of the
Grab pays attention to the consistency of the
ers Settle consistently with the quality of number of drivers and passengers, training Makes a corresponding cost assessment M
number of drivers and passengers, training
er to their products and prices of fares. and finding more drivers to ensure the and budget for each product.
ause and finding more drivers to ensure the
probability of successful travelling.
xi. probability of successful travelling.
Grab pays attention to the consistency of Br

the number of drivers and passengers, ca
of Makes a corresponding cost assessment and Makes redeemable rewards to help
training and finding more drivers to Makes a corresponding cost assessment and g
. budget for each product. sustain the loyalty of customers.
ensure the probability of successful budget for each product. incr
travelling.
y of Branched out services such as private

rs, cars, motorcycle taxis, carpooling and
Makes a corresponding cost assessment Makes redeemable rewards to help sustain
o Makes redeemable rewards to help sustain good delivery while making a ever-
and budget for each product. the loyalty of customers.
l the loyalty of customers. increasing investment in mobile-software
R&D.
Branched out services such as private cars,

Branched out services such as private cars,
ent Makes redeemable rewards to help motorcycle taxis, carpooling and good
motorcycle taxis, carpooling and good
sustain the loyalty of customers. delivery while making a ever-increasing
delivery while making a ever-increasing
investment in mobile-software R&D.
investment in mobile-software R&D.
Conclusion &
Recommendation
Grab takes serious
Grab is a trusted Grab is accessible for matters for the
service nationwide. all ages. passengers and drivers
safety.
Professionally trained to increase the company's development in the market.

ECO162 - Grab Holdings Inc

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ECO162 - Grab Holdings Inc

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FRI

The idea of creating a taxi-booking

GrabTaxi was started with an initial

Singapore based transportation

It utilizes smartphones cloud-base

They provide safety rules that can

At around June 2013, it claimed to

The company also claimed to have

There will be less discount and promotions

Grab Food said customers

to contact their passengers.

They launched ride-sharing service as an instant

Grab Food said customers

Grab Food said customers

Unclaimed orders and customers

Grab Food said customers who do not show up or

Grab Food said customers

As an extension of the Grab Pay wallet,

GrabFood is a major milestone in their

serve every palate and craving and

GrabFood is a major milestone in their

serve every palate and craving and

A passenger checking fares

passengers who are closest

The demand for grabs has been steadily increasing,

during rush hour, wet weather or in more remote locations -

• Grab creates products and abilities to maintain consistency

• In Malaysia, it is said that Grab doesn't have competitors in

• Tries to fulfill the customers needs of wanting fast

• To prove their uniquenes from other companies,

Grab collects a fixed 20% commision from

Grab collects a fixed 20% commision

Grab pays attention to the consistency of Br

y of Branched out services such as private

Branched out services such as private cars,

Professionally trained to increase the company's development in the market.

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