Grab (application)

Grab
Industry Transport
Founded Malaysia (2011 (2011))
Founders Anthony Tan and Tan Hooi Ling
Headquarters Singapore
Number of locations
 Six countries (as of April 2015)
Key people
  • Anthony Tan (CEO)
  • Aaron Gill (Head of Product)
  • Kevin Lee (Vice-President, Data and Growth)
  • Cheryl Goh (Vice-President, Regional Marketing)
  • Wei Zhu (CTO)
  • Arul Kumaravel (Vice-President, Engineering)
Website grab.co

Grab (formerly known as GrabTaxi) is a mobile e-hailing application available in six countries.[1] It is an automated smartphone based booking and dispatch platform for the taxi industry in Southeast Asia, available in Malaysia, Singapore, Thailand, Vietnam, Indonesia and the Philippines. Their vision is to revamp the Southeast Asian taxi industry, making it a safer and more efficient means of transport for the Southeast Asian communities.[2] As of March 2015, the number of taxi drivers registered in the network has increased to 75,000, with a total of 3.8 million mobile application users across Southeast Asia.[3] GrabTaxi app can be downloaded from Android Google Play, Apple iOS and BlackBerry World.

History

Originally established in 2011 as MyTeksi in Malaysia, GrabTaxi is a Southeast Asia focused taxi-booking app founded by Harvard Business School graduates Anthony Tan and Tan Hooi Ling.[4] The idea for GrabTaxi first started when Anthony Tan was a student at Harvard Business School and a classmate pulled him aside to gripe about how hard it was to hail a cab in Malaysia. Tan drew up a business plan for an Uber-like service that won backing from angel investors, leading the youngest of three brothers to quit the family business in 2012 to start GrabTaxi, a mobile application that assigns available cabs nearby to commuters using mapping and location-sharing technology.[5] Tan pitched the idea to the panel of the 2011 Harvard Business Plan Competition, that led to them being placed second, making them the first all-Asian team to have succeeded in many years.[6]

Localisation

GrabTaxi, or MyTeksi as its known in Malaysia, was officially launched to the public in June 2012.[7] The company expanded to the Philippines in August 2013,[8] and to Singapore and Thailand in October of the same year.[9]

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.[10][11] That same year, GrabTaxi later expanded to two more cities in the Philippines: Cebu in July, and Davao in October.[12][13] A beta version of the app was launched in Pattaya, Thailand in September 2014.

In May 2014, the company launched GrabCar in Malaysia and Singapore.[14][15] GrabCar serves as an alternative form of transportation service that uses cars through a licensed partner in an effort to overcome the lack of supply of public transportation during peak hours. In November 2014, GrabTaxi launched its first GrabBike service in Ho Chi Minh City as a trial service.[16]

In February 2015, the company launched GrabCar+ (a service that provides a fleet of higher-end cars) in the Philippines.[17] In March 2015, the company expanded to Iloilo, making it its 4th city in the Philippines.[18]

As of March 2015, more than 75,000 drivers registered in GrabTaxi and currently there are seven bookings made every second.[19][20]

Management

Mission

GrabTaxi mobile software seeks to overcome the inefficiency in the taxi industry that exists in Southeast Asia region.[21][22][23] The start-up company uses smartphone technology and multiple data-points to match taxi drivers and passengers. The company holds to the principle of providing a service that is parallel to their business pillars; Safety, Certainty and Speed.

Funding

The initial period was tough with many sceptics. Tan started by going door-to-door to ask the biggest taxi fleet companies to try his product. Only the fifth taxi company he approached, operating a small fleet of 30, gave him a chance. The company progressed and raised US$90 million in 12 months from hedge fund Tiger Global, prominent Chinese venture capital firm GGV Capital, Vertex Venture Holdings (subsidiary of Singapore sovereign wealth fund Temasek Holdings), and more.[24] 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, a sixteen-fold growth within a year.[25]

By December 2014, it managed to raise US$250 million series D round, fully invested in by SoftBank Corp which is the largest investment ever made in a Southeast Asian internet company on public record thus far.[26] The total investment received by the company over the last 14 months amounted to US$340 million.[27]

In March 2015, GrabTaxi was named the 3rd most well-funded startup in Southeast Asia with total funding of $340million at Funding Stage D.[28]

On the back of the company’s rapid growth, GrabTaxi opened a US$100million Research & Development facility in the Central Business District of Singapore.[29] The new facility houses 200 engineers and data scientists over the next few years. Recently joining their team includes Chief Technology Officer Wei Zhu, ex-Facebook Engineer and creator of Facebook Connect who left the company in Aug 2015.[30] The emphasis on software engineers and data scientists recruitment for the new facility suggests the company’s strategy in development of new tools, possible expansion of app and service features as well as staff management.[31] In 2016, the company will open a new engineering office center in Seattle that will serve as a tech hub to attract talent in the United States.[32] The company states that it has no plans to launch in North America.[33]

Services

Features and functionality

The GrabTaxi application is available on Android, iOS and Blackberry 10 devices and Window phones. There is a one-time activation process for first time users. The user only has to specify their location and their destination in the “From” and “To” field. The built-in GPS automatically detects the location of the passenger and locates the nearest driver. The estimated charges and the summary of the driver’s details of the booking will be shown on the next screen once the booking is successful. The user can also add additional “Tip” for the driver. The driver, who uses the same application can then accept or reject the request. When a booking is made by a commuter, the phone shows in real-time a list of cabs being offered the job. Once a match is made, the commuter’s and the driver’s phone numbers are immediately made available to each other so that they can communicate about any unexpected issues. Dialling can be done from within the app.[34][35][36][37]

The drivers and commuters are likely to be using 3G devices, so the response times are much faster than those from the operator’s terminals, which are on the much slower GPRS. This eliminates annoyances such as many drivers turning up for the same job or commuters getting in another cab because they think their booking was not successful.[38][39]

GrabCar, GrabCar+ and GrabBike services are available on the same platform as GrabTaxi, which in turn, offers the GrabTaxi users a transportation option when they are travelling in any of the 6 countries where GrabTaxi operate in.[40][41]

Availability

GrabTaxi operates in 22 cities across 6 countries in the South-east Asia region.

  •  Malaysia
    • Kuala Lumpur
    • Putrajaya
    • Selangor
    • Negeri Sembilan
    • Johor Bahru
    • Malacca
    • Penang
    • Kuching
    • Kota Kinabalu
  •  Philippines
    • Manila
    • Baguio
    • Cebu
    • Davao City
    • Iloilo City
  •  Thailand
    • Bangkok
    • Pattaya
    • Chiangrai
    • Phuket
  •  Vietnam
    • Ho Chi Minh City
    • Hanoi
    • Danang

Languages

GrabTaxi is available in 6 languages—English, Thai, Vietnamese, Chinese, Bahasa Malaysia and Bahasa Indonesia.[42][43] The same GrabTaxi app is available in all the countries in which it is operating— namely Malaysia (where it’s known as MyTeksi), the Philippines, Thailand, Vietnam and Singapore, and the user interface of the application is the same in those countries.[44]

Miscellaneous

Business model

GrabTaxi works similar to a marketplace: making use of big data, it is about to connect the supply and demand, by allowing consumers to locate cabs near them in the shortest period of time after they key in their search. First of all, the software needs to be optimised, so this means analysing the big data to allocate search queries and planning for taxis to be in particular areas at certain timings when they are in higher demand — before customers even press the ‘book’ button. Furthermore, GrabTaxi is able to shift the demand through pricing. GrabTaxi acknowledges that it subsidises some rides to try to close the gap between supply and demand during off-peak or peak periods. Also, consumers in Malaysia, the Philippines, Thailand and Vietnam have an option of tipping their drivers if they need a taxi urgently. Singapore’s government, however, has made GrabTaxi remove the reward system to ensure its compliance with local regulations, so in the city GrabTaxi is only working based on big data.[45]

The pricing model for GrabTaxi in Malaysia is on a tiered percentage basis – ranging between five to 10 percent of the taxi fare, in the Philippines, it charges the passenger 70 Pesos per passenger. In Bangkok, a 25-baht booking fee surcharge applies on top of the normal metered fare, which is only turned on once a passenger is inside the taxi.[46][47][48]

GrabTaxi’s monetisation scheme works as follows: drivers pay GrabTaxi to be part of its ‘fleet’. When a new driver signs up, he is given a $10 credit from which commissions are deducted. For each successful booking, GrabTaxi takes a S$0.30 cut each.The driver has to top up his account when it’s exhausted to receive more bookings. Receiving pre-payments allows Grab Taxi to invest the funds before it is spent. Furthermore, GrabTaxi has low expenses incurred with almost no fixed costs beyond a nominal office and some IT infrastructure. just for being a middleman connecting taxi drivers to consumers. Moreover, GrabTaxi’s IT operating costs will fall every year because of Moore’s Law.[49]

Corporate social responsibility

In Jan 2015, GrabTaxi announced the creation of a Provident Welfare Fund for its drivers to thank them for their efforts. The Provident Welfare Fund will be launched with an initial S$3.5 million welfare fund for taxi drivers who are active and deliver the "highest service standards". After which, GrabTaxi will deposit S$300 into the fund every month for every driver that fulfils the service and usage criteria. Drivers can use the fund for medical, accident coverage and crisis support by submitting the relevant receipts and documents to GrabTaxi to make a claim – except in the case of crisis support, where no documentation is required. GrabTaxi said there is no limit to the number of taxi drivers who can qualify. The company will use customers' feedback and a rating system to identify which drivers offer their passengers good service.[50]

In April 2015, GrabTaxi Singapore partnered Ministry of Defence to offer subsidised cab rides for six months to full-time national serviceman and regular servicemen to express its gratitude to their commitment. The subsidised ride will be a $3 deduction and is applicable to five trips from April 2015 till the end of September 2015. The subsidy aims to benefit over 70,000 active servicemen and woman who often depend on taxis during unexpected drills at odd hours, or when they have to lug extra equipment.[51]

Campaign

In 2014, GrabTaxi launched its “My Wild Teksi campaign” in Malaysia. The campaign mechanics were simply to get potential customers to take a “selfie” with the decorated taxis and post it to their social media.[52] The approach to attract users and downloads was similar to GRABeng Christmas campaign in 2013 launched by GrabTaxi in the Philippines.[53]

In Thailand, GrabTaxi has rolled out multiple marketing campaigns when it was newly launched there in 2013, ranging from a special promotion on Mother’s Day to booking fee waivers. Grabtaxi has been especially aggressive with its marketing strategy, from partnering with local coffee shops in Vietnam to participating in large online campaigns like Online Fever.[54]

Awards

GrabTaxi was named Frost & Sullivan Best Travel App of 2013, and the company also scored the 2013 Malaysian Venture Capital and Private Equity Outstanding Trustee Company award. The founder, Anthony Tan received the 2014 PIKOM ICT Technopreneur Excellence award. The same year, the mobile app company was awarded the 2014 I-S Magazine Reader’s Choice Awards Coolest Local App, and the 2014 Promotion Marketing Awards of Asia’s Best Cause, Charity Marketing of Public Sector Campaign Silver Awards.[55][56][57]

Reception

The existence of GrabTaxi in the six countries in which it operates in has created a major shakedown in Southeast Asia’s taxi industry, providing an appealing transportation service to tech savvy populations. In Singapore, GrabTaxi received majority votes in an online poll conducted by Singapore’s Straits Times as the taxi app of choice.[58]

Regulatory issues

Recent regulatory issues have arisen for third-party booking apps like GrabTaxi, but there seems to have been few issues surrounding the company in the 6 markets that they are in. The tech company has also received the support of the Malaysian Public Land Transport Commission (SPAD) when the government department introduced the use of technology using the GrabTaxi applications to enhance efficiency of taxi drivers in Malaysia. The company is working with the government department to improve the image of taxi drivers in the city.[59][60][61]

GrabTaxi also expanded their services to Penang in September 2014, when it was officially launched by the Chief Minister of Penang, Lim Guan Eng. The company has also maintained a close relationship with local regulators, evidenced by the Jakarta Governor’s public support of the GrabTaxi’s entry to the market.[62][63]

Further application

GrabBike

As derivative of GrabTaxi, nowadays GrabBike's motorcycle service rides can be found in Ho Chi Minh City and Hanoi City, Vietnam, Bangkok, Thailand and Jakarta, Indonesia. These cities have heavy traffic jams, so using a motorcycle can be faster than using other transportation mode. GrabBike also provides medical insurance for the passengers and the drivers.[64][65]

In the Philippines, GrabBike temporarily stops operations following LTFRB order. LTFRB and GrabBike Inc. met to discuss the transport agency's warning for the motorcycle taxi service to stop its operations as it is not included in Grab's, or any other transportation Network Company's (TNC), accreditation to offer bikes as a public mode of transportation that can be booked through a digital platform. The Department of Transportation and Communications (DOTC) has yet to create guidelines regarding the use of bikes and motorcycles as a public mode of transportation, until then, GrabBike will not be able to operate. TNC's non-compliance with the directive "shall be dealt with severely," said LTFRB.[66]

References

  1. ↑ Lina, Noviandari (6 June 2014). "Cab booking app GrabTaxi now available in Indonesia". Retrieved 17 April 2015.
  2. ↑ "GrabTaxi - About us". Retrieved 17 April 2015.
  3. ↑ Tay, Daniel (4 December 2014). "GrabTaxi raises a record-breaking $250M, plans to leave other regional players in the dust". Retrieved 17 April 2015.
  4. ↑ Cheong, Kash (30 April 2014). "GrabTaxi: Currently the most prominent third-party taxi app". Retrieved 17 April 2015.
  5. ↑ Siddharth Vikram, Philip (10 June 2014). "Harvard Inspires Man to Ditch Family Riches for Taxis". Retrieved 17 April 2015.
  6. ↑ Kumar, Dhaleta Surender (11 February 2014). "My first venture was at 11, says Anthony Tan, who traded comics then". Retrieved 20 March 2015.
  7. ↑ Bland, Ben (24 June 2014). "Southeast Asia’s answer to Uber". Retrieved 20 March 2015.
  8. ↑ Calvin (13 July 2014). "GrabTaxi officially launched in the Philippines". Retrieved 19 March 2015.
  9. ↑ Digital News Asia (21 October 2013). "MyTeksi launches GrabTaxi in Bangkok and Singapore". Retrieved 20 March 2015.
  10. ↑ Do, Anh-Minh (26 February 2014). "MGrabTaxi enters Vietnam, intensifying the battle for mobile taxi booking apps". Retrieved 20 March 2015.
  11. ↑ Digital News Asia, Anh-Minh (6 June 2014). "GrabTaxi launches beta trial in Jakarta". Retrieved 20 March 2015.
  12. ↑ Doyzkie (2 July 2014). "GrabTaxi launches in Cebu". Retrieved 20 March 2015.
  13. ↑ C.Corpuz, Lynda (23 October 2014). "GrabTaxi app raises $90m fund". Retrieved 20 March 2015.
  14. ↑ Schnabel, Chris (19 February 2015). "GrabCar PH relaunches". Retrieved 13 April 2015.
  15. ↑ Free Malaysia Today (17 May 2014). "MyTeksi launches GrabCar service". Retrieved 13 April 2015.
  16. ↑ Luan, Thanh (13 March 2013). "Vietnam’s xe om service enters digital age with GrabBike app". Retrieved 28 November 2014.
  17. ↑ Schnabel, Chris (19 February 2015). "GrabCar PH relaunches". Retrieved 13 April 2015.
  18. ↑ Unknown (13 March 2013). "Booking app GrabTaxi comes to Iloilo". Retrieved 20 March 2015.
  19. ↑ Twishy (4 December 2014). "GrabTaxi grabs US$250 mil in Series D round from Softbank". Retrieved March 2015.
  20. ↑ de Waal-Montgomery, Michael (January 2015). "GrabTaxi Singapore launches US$2.8 mil fund for driver welfare". Retrieved 4 April 2015.
  21. ↑ Hong, Kaylene (12 August 2014). "The war Uber faces: how it’s battling GrabTaxi and Easy Taxi in Southeast Asia". Retrieved 19 March 2015.
  22. ↑ Jacky (19 May 2014). "GrabTaxi launches new limo service GrabCar, wants to be the Uber of Asia". Retrieved 19 March 2015.
  23. ↑ Trev (18 November 2014). "GrabTaxi Pattaya". Retrieved 19 March 2015.
  24. ↑ Wong, Grace (20 October 2014). "MyTeksi raises US$90 Mil funding to boost expansion". Retrieved 20 March 2015.
  25. ↑ Lee, Terence (21 October 2014). "GrabTaxi is one of Southeast Asia’s hottest startups. Here’s how it’s kicking ass". Retrieved 17 April 2015.
  26. ↑ Tay, Daniel (4 December 2014). "GrabTaxi raises a record-breaking US$250 mil, plans to leave other regional players in the dust". Retrieved 20 March 2015.
  27. ↑ Huang, Elaine (21 October 2014). "[Updated] GrabTaxi raises series C round of about US$65 mil". Retrieved 19 March 2015.
  28. ↑ Tay, Daniel (9 March 2015). "Here are the 15 most well-funded startups in Southeast Asia (INFOGRAPHIC)". Retrieved 17 April 2015.
  29. ↑ MalayMailOnline (8 April 2015). "GrabTaxi opens US$100m R&D centre in Singapore". Retrieved 13 April 2015.
  30. ↑ Tegos, Michael (8 April 2015). "GrabTaxi opens new R&D center in Singapore, nabs Facebook Connect creator as CTO". Retrieved 17 April 2015.
  31. ↑ Tegos, Michael (8 April 2015). "GrabTaxi CEO reveals huge recruitment drive at new $100M R&D center". Retrieved 17 April 2015.
  32. ↑ http://techcrunch.com/2016/01/13/grabtaxi-seattle-office/
  33. ↑ http://www.theverge.com/2016/1/13/10763894/grabtaxi-seattle-engineers-uber-southeast-asia
  34. ↑ Hughes, Jennifer (4 December 2014). "GrabTaxi:Currently the most prominent third party taxi app". Retrieved 20 March 2015.
  35. ↑ Yap, Jacky (8 September 2014). "Taxis at a tap of a button – In Singapore, GrabTaxi is dominating". Retrieved 20 March 2015.
  36. ↑ Auyong, Hawyee (21 April 2014). "Why GrabTaxi is giving Singapore’s largest taxi operator a run for its money". Retrieved 20 March 2015.
  37. ↑ Noviandari, Lina (6 June 2014). "Cab booking app GrabTaxi now available in Indonesia". Retrieved 20 March 2015.
  38. ↑ Yap, Jacky (8 September 2014). "Taxis at a tap of a button – In Singapore, GrabTaxi is dominating". Retrieved 20 March 2015.
  39. ↑ Goh, Darian (28 October 2014). "MyTeksi VS Easy Taxi VS Uber. Which transportation did better?". Retrieved 20 March 2015.
  40. ↑ Schnabel, Chris (19 February 2015). "MGrabCar PH relaunches". Retrieved 13 April 2015.
  41. ↑ Free Malaysia Today (17 May 2014). "MyTeksi launches GrabCar service". Retrieved 13 April 2015.
  42. ↑ MyTeksi, 2012. "MyTeksi". Retrieved 20 March 2015.
  43. ↑ GrabTaxi, 2012. [Retrieved from https://itunes.apple.com/my/app/grabtaxi-book-a-taxi/id647268330?mt=8 "GrabTaxi (Version 2.7.0)"] Check |url= value (help). Retrieved 20 March 2015.
  44. ↑ Hong, Kaylene (April 2014). "GrabTaxi is growing a taxi-booking service in Southeast Asia using a unique model". Retrieved 19 March 2015.
  45. ↑ Hong, Kaylene (8 April 2014). "GrabTaxi is growing a taxi-booking service in Southeast Asia using a unique model". Retrieved 17 April 2015.
  46. ↑ Kumar, Dhaleta Surender (11 February 2014). "My first venture was at 11, says Anthony Tan, who traded comics then". Retrieved 20 March 2015.
  47. ↑ Kumar, Dhaleta Surender (18 October 2013). "MCab booking app GrabTaxi comes to Singapore". Retrieved 20 March 2015.
  48. ↑ Chandra, Meisia (6 June 2014). "GrabTaxi launches beta trial in Jakarta". Retrieved 20 March 2015.
  49. ↑ Auyong, Hawyee (21 April 2014). "Why GrabTaxi is giving Singapore’s largest taxi operator a run for its money". Retrieved 17 April 2015.
  50. ↑ "GrabTaxi launches S$3.5m welfare fund for taxi drivers". 23 January 2015. Retrieved 17 April 2015.
  51. ↑ "GrabTaxi salutes Singapore’s military personnel with subsidised rides". 15 April 2015. Retrieved 17 April 2015.
  52. ↑ Lainey (5 December 2014). "#myWILDTeksi: Snap a pic of your wild myteksi ride & win". Retrieved 20 March 2015.
  53. ↑ De La Cruze, Rose (8 December 2014). "GrabTaxi app eases commuters’ woes". Retrieved 20 March 2015.
  54. ↑ Su, Susan (9 April 2015). "Case study: GrabTaxi Growth Hacks". Retrieved 20 March 2015.
  55. ↑ Digital News Asia (19 November 2014). "MyTeksi founder wins Technopreneur Award at PIKOM ICT Leadership awards". Retrieved 20 March 2015.
  56. ↑ I-S Staff (9 October 2014). "Here are the winners of the I-S Reader’s Choice Awards 2014!". Retrieved 20 March 2015.
  57. ↑ Promotion Marketing Awards (29 September 2014). "2014 PMAA Dragons of Asia Marketing Communications Programme" (PDF). Retrieved 20 March 2015.
  58. ↑ Kok, Lee Min (17 December 2014). "GrabTaxi, ComfortDelgro flagged as most popular: Straits Times online poll". Retrieved 20 March 2015.
  59. ↑ Choe, Melissa (14 September 2014). "MyTeksi app to drive Penang tourism". Retrieved 20 March 2015.
  60. ↑ Carvalho, Martin (21 October 2014). "Myteksi calls for ‘level playing field’ to compete with Uber". Retrieved 20 March 2015.
  61. ↑ Bernama (12 December 2014). "SPAD introduces MyTeksi, TaxiMonger apps to enhance efficiency of cabbies of cabbies". Retrieved 20 March 2015.
  62. ↑ Choe, Melissa (14 September 2014). "MyTeksi app to drive Penang tourism". Retrieved 20 March 2015.
  63. ↑ Hong, Kaylene (8 April 2014). "GrabTaxi is growing a taxi-booking service in Southeast Asia using a unique model". Retrieved 19 March 2015.
  64. ↑ "GrabTaxi’s motorcycle service rides into its third city, offers free rides in Jakarta". 20 May 2015.
  65. ↑ "GrabBike debuts in Bangkok". 6 August 2015.
  66. ↑ http://cnnphilippines.com/news/2016/02/05/GrabBike-temporarily-stops-operations-LTFRB-DOTC.html
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