Tag: grab

  • Grab no longer buying Trans-cab, Singapore watchdog says

    Grab no longer buying Trans-cab, Singapore watchdog says

    Grab, Southeast Asia’s biggest ride-hailing and food delivery firm, has called off its proposed acquisition of Singapore’s third-largest taxi operator, Trans-cab, according to a statement from Singapore’s competition watchdog.

    The Competition and Consumer Commission of Singapore (CCCS) said in the statement on Thursday evening that both Grab and Trans-cab had notified it on July 22 that they would no longer be proceeding with the proposed acquisition.

    “With the termination of the proposed acquisition, the parties have withdrawn their application to CCCS for a decision, and CCCS has accordingly ended its assessment of the proposed acquisition,” CCCS said in the statement.

    Trans-cab did not immediately respond to a request for comment after working hours.

    “(The) ruling does not change our determination to do everything that we can to offer affordable, reliable transport options to passengers in Singapore,” Yee Wee Tang, managing director at Grab Singapore.

    The commission added that it encourages businesses with acquisition plans to engage CCCS at an early stage if they think there are likely to be competition concerns.

    The commission first raised concerns about the taxi deal in October 2023 before asking Grab and Trans-cab for solutions to address competition concerns earlier this month.

    Grab is one of the city-state’s top ride-hailing companies, with the deal for Trans-cab reported to be worth around S$100 million ($74.55 million).

  • Grab chalks up first profitable quarter, but clouds loom

    Grab chalks up first profitable quarter, but clouds loom

    Grab Holdings reported its first quarterly profit on Thursday and unveiled a maiden share repurchase program, but the ride-share and food-delivery firm’s weak annual sales forecast fanned growth worries and weighed on its shares.

    While the Singapore-based company’s ride-share growth hit pre-pandemic levels in 2023, its food-delivery services is rebounding from a slowdown following a boom during the lockdown.

    “There will be revenue acceleration in the years beyond 2024 as investments in our new products bear fruit,” CFO Peter Oey told Reuters.

    He said Grab was building premium offerings in its mobility and delivery services that could generate high-value transactions.

    US-listed shares of Grab, which also said it expects an annual adjusted core profit, were down 2 percent at $3.38 in early trading.

    The company forecast fiscal 2024 revenue between $2.70 billion and $2.75 billion, compared with analysts’ average estimate of $2.80 billion, according to LSEG data.

    Grab said on Thursday it would repurchase $500 million worth of class A ordinary shares, and announced an early payment of the remainder of a term loan. This followed global peer Uber announcing its first-ever share buyback last week.

    Grab also projected full-year adjusted core profit of $180 million to $200 million, compared with estimates of $135.2 million.

    The company’s fourth-quarter revenue of $653 million beat estimates of $629 million. Revenue rose 26 percent in its mobility business on holiday quarter travel demand, while it increased 20 percent in its delivery unit.

    Grab posted a net income of $11 million in the fourth quarter, helped in part by a “reversal of an accounting accrual”.

    The company delivered its first adjusted core profit in its fiscal third quarter, aided by workforce reduction and cut to some incentives and technology costs over the past two years.

  • Motorbike taxi driving unsustainable for laid off workers

    Motorbike taxi driving unsustainable for laid off workers

    More than a few workers made unemployed by increasing layoffs in Vietnam recently have become motorcycle taxi drivers only to realize it’s not a lasting solution.

    After starting his workday at 5 a.m., at 10 a.m. Le Van Manh had completed only one trip, which made him VND40,000 (around $1.7) in cash.

    Manh started working as a motorbike taxi driver four months ago, after two years suffering from his old factory’s unstable business performances.

    “The factory started layoffs, forced us to work overtime, and cut down on our salaries,” he said.

    His income as a factory worker used to be around VND20 million, but was reduced to only half that starting last year. Not being able to get by with that income, he quit his job and turned to ride-hailing applications, hoping for better financial rewards.

    Manh spent around 12 hours a day on the road after his career turning point. Things went smoothly at first, as he was able to earn between VND400,000 and VND500,000 a day during the first two months working as a motorbike taxi driver.

    But the number of drivers has increased over the recent months, and Manh now has to share his customer pool with his new “colleagues,” and thus, earn a lower income of only VND300,000, or even VND100,000 sometimes, per day.

    “I can only complete around 10 trips a day now, compared to over 20 trips a day before,” he said.

    According to data published by the General Statistics Office of Vietnam, more than 149,000 workers lost their jobs in Q1 this year, 13% higher than the previous quarter. Of these laid off workers, most worked in companies in the FDI sector based at industrial areas in and around the provinces of Dong Nai, Binh Duong, Bac Ninh, Bac Giang.

    The Private Sector Development Research Board projected that the layoff wave could continue in this year’s second half, due to both external and internal challenges for businesses.

    Not requiring any educational background or specific skill sets, motorbike taxi drivers are the first career choice for many laid off workers to make a new living.

    Hoang Van Trieu, a former truck driver at a Binh Duong-based wood warehouse, started working as a full-time motorcycle taxi driver three months ago, after becoming unemployed when his company went bankrupt. Having expected that the new occupation would help him cover his living expenses, he got depressed after a while.

    “I spend about 10 to 11 hours a day, in exchange for between VND300,000 and VND400,000,” he said. “I cannot get by if I maintain this as my full-time job.”

    He is now trying to look around for other career opportunities. The best scenario he can think of is being able to find an office job, which allows him to leave at around 4 p.m. or 5 p.m., so that he can hit the road and start the second “working shift” of his day as a motorcycle taxi driver until before midnight.

    Ride-hailing applications, of which the most popular in Vietnam are Grab, Gojek, and Be, were once considered a life saver for those that were looking for another occupation, including laid off workers looking for career chances or fresh graduates waiting for a job after finishing school.

    The Vietnam General Confederation of Labor estimated in 2021 that there were over 200,000 partner drivers working with Grab, which rose from around 175,000 in 2018. Of these, around 26% graduated from a higher educational institution or equivalent.

    Gojek reported that the platform surpassed 200,000 drivers in mid-2021, while Be announced that the number of its partner drivers surpassed 100,000 at the beginning of the same year.

    Drivers’ daily income was as high as between VND500,000 and VND600,000 at that time.

    However, things have become harder for drivers recently. The supply of drivers increased and the fees taken out by the applications rose and currently range between 30% and 39% of the amount charged to customers. All of these mean it has become harder for drivers to maintain their income.

    Nguyen Dinh Vuong, former worker at a Hanoi-based leather company, decided to return to his hometown after months of suffering from this “high cost, low reward” job. He spent around 12 hours working a day to get between VND300,000 and VND400,000 in return. With this income, he did not have much left after paying his bills.

    “Motorcycle taxi drivers in Hanoi have to work at least 12 hours to earn enough to get by,” he said. “The cost of living in my hometown Thanh Hoa is lower, so I spend less, and don’t have to work that hard.”

    According to him, many former industrial workers, who were laid off due to the downfall in the orders, are trying their best to get by, in the hope of an economic recovery that will lead to improved business performances and thus, higher demand for labor.

    Dr. Huynh Thanh Dien, an economic expert, made a prediction aligning with this hope. He projected that the labor market would soon retrieve a state of stability and temporary motorcycle taxi drivers would soon be able to return to their occupations.

    He also warned that partner drivers for ride-hailing applications should not be considered a long-term career goal, as the job cannot provide a stable income in the long run. Instead, it should be treated as a temporary “cover” occupation only while the economy follows its natural rhythm and proceeds on its way to recovery.

    In the meantime, these people have no other choices than optimistically enduring.

    “The economy can’t be gloomy forever,” Manh said. “As I heard from the news, the situation is predicted to become better in 2024, so I will try to get by and wait until then.”

  • Grab cuts 1000 jobs

    Grab cuts 1000 jobs

    Singapore-based Grab Holdings, Southeast Asia’s leading ride-hailing and food delivery app, is cutting 1,000 jobs or 11 per cent of its workforce, its CEO said on Tuesday, citing the need to manage costs and ensure more affordable services long term.

    In a letter sent to employees late on Tuesday and seen by Reuters, chief executive Anthony Tan said the cuts, the biggest since the start of the pandemic, were not “a shortcut to profitability” but a strategic reorganisation to adapt to the business environment.

    “Change has never been this fast. Technology such as generative AI (artificial intelligence) is evolving at breakneck speed. The cost of capital has gone up, directly impacting the competitive landscape,” Tan said in the letter.

    “We must combine our scale with nimble execution and cost leadership, so that we can sustainably offer even more affordable services and deepen our penetration of the masses.”

    Tan said that even without layoffs, Grab had managed costs and should hit its target for group adjusted EBITDA breakeven this year.

    The “superapp”, founded in 2012, offers deliveries, rides and financial services in eight Southeast Asian countries, including Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

    Its shares were up 4.7 percent premarket after Tan’s announcement to staff. The stock had climbed as much as 5.6 percent premarket, extending earlier gains on a Bloomberg News report of the cuts.

    The layoffs follow a similar move last year by Indonesian tech firm GoTo, which offers rides, e-commerce and financial services. It has undergone strict cost-cutting, including axing 12% of its workforce in 2022. It laid off a further 600 staff in March.

    Its incoming CEO is planning to head the firm only temporarily and quit after improving profitability, sources told Reuters last week.

    In May, Grab reported a quarterly loss of $250 million but said revenue in the first quarter of this year rose 130.3 percent to $525 million from a year ago.

    In February, it issued an upbeat forecast for full-year revenue for 2023 and brought forward its profitability timeline.

    The US-listed Grab’s last job cuts were in 2020, when 360 people were laid off in response to the impact of the pandemic. The company had 11,934 staff as of the end of 2022, including about 2,000 from its acquisition of a grocery chain last year, its latest annual report said.

    In September last year, it said it had no plans to undertake mass layoffs despite the weak market. In December, Tan told staff the company was freezing most hiring, payrises for senior managers, and cutting travel and expense budgets.

  • Hanoi ride-hailing services struggle to cope with Tet demand

    Hanoi ride-hailing services struggle to cope with Tet demand

    Hanoians are struggling to book ride-hailing and delivery services during the runup to Tet (Lunar New Year holidays).

    Hoang Viet of Nam Tu Liem District had an interminable wait before he could get a motorbike on a ride-hailing app on January 15 evening.

    He said: “The apps kept saying all drivers nearby were busy. It took me nearly an hour for a motorbike driver to accept my trip.”

    On the morning of January 16, Nguyen Linh of Tay Ho District had to wait longer than usual to get a GrabCar and the fare had nearly doubled from just a few days ago.

    On January 15 morning, Phuong Anh, who sells Tet gifts, could not find drivers to deliver goods to her customers though fares were higher than usual amid.

    Seeing the surging demand, more ride-hailing and delivery firms have decided to apply surcharges during Tet, Vietnam’s biggest festival, which this year is celebrated from January 20-26.

    Grab has a surcharge of VND5,000 ($0.21) on motorbike rides and delivery orders and VND15,000 on taxi rides.

    Other ride-hailing companies Be and Gojek charge VND5,000-20,000 extra, and delivery service provider Baemin charges VND10,000.

  • Grab to implement cost cuts, cites uncertain macroeconomic situation

    Grab to implement cost cuts, cites uncertain macroeconomic situation

    Grab Holdings, Southeast Asia’s biggest ride-hailing and food delivery firm, is rolling out cost-cutting measures to cope with an uncertain macroeconomic situation, the Singapore-based company’s chief executive told staff in a memo.

    The measures include a freeze on most hirings, salary freezes for senior managers and cuts in travel and expense budgets, according to the memo, whose contents were confirmed by a company spokesperson.

    “None of these decisions were easy, but are meant to help us get leaner and fitter, as we accelerate even faster towards sustainable, profitable growth,” CEO Anthony Tan said in the memo sent to the staff on Wednesday and was viewed by Reuters. “More so than ever, all Grabbers need to adopt a frugal and prudent mindset as we prepare for 2023.”

    Last month, Grab raised its 2022 revenue forecast, reported a narrower adjusted operating loss and said its food and grocery delivery business broke even three quarters ahead of the company’s expectations.

    Tan said in the memo that Southeast Asia has not, and will not, be spared from rising prices and interest rates, and the consequent effects on growth.

    Grab’s new measures “will also help us avert knee-jerk reactions that may interrupt our plans down the road,” he said.

    Decade-old Grab, a household name in eight Southeast Asian countries, has been trying to stem losses by focusing on higher-paying customers and lowering spending on incentives. Grab, which operates in 480 cities in eight countries, had about 8,800 staff at the end of 2021.

    In September, Grab’s chief operating officer, Alex Hungate, said that the company did not envision having to undertake mass layoffs as some rivals, including Uber Inc have done. Instead, Hungate said, the company would selectively hire, while reining in its financial-services ambitions.

    The memo circulated on Wednesday said Grab would “freeze the majority of current open job requisitions which are not in offer stage”. Tan wrote that requests to backfill and fill critical roles would need to be approved.

    Certain leaders at the company would not be eligible for raises in their upcoming reviews, while the travel and expense budget will be reduced by another 20% from the last guidance, according to the memo.

    Grab has more than 5 million registered drivers and more than 2 million merchants on its platform. It caught global attention in 2018 when it acquired Uber’s Southeast Asian business after a costly five-year battle.

    Tan said the company has been cautious with how it has spent money over the past two years, streamlining some businesses, tapering down incentives as well as slowing down hiring. These measures, Tan said, had helped Grab get closer to its profitability goals.

  • Grab to implement cost cuts, cites uncertain macroeconomic situation

    Grab to implement cost cuts, cites uncertain macroeconomic situation

    Grab Holdings Ltd, Southeast Asia’s biggest ride-hailing and food delivery firm, is rolling out cost-cutting measures to cope with an uncertain macroeconomic situation, the Singapore-based company’s chief executive told staff in a memo.

    The measures include a freeze on most hirings, salary freezes for senior managers and cuts in travel and expense budgets, according to the memo, whose contents were confirmed by a company spokesperson.

    “None of these decisions were easy, but are meant to help us get leaner and fitter, as we accelerate even faster towards sustainable, profitable growth,” CEO Anthony Tan said in the memo, which was sent to the staff on Wednesday and was viewed by Reuters. “More so than ever, all Grabbers need to adopt a frugal and prudent mindset as we prepare for 2023.”

    Last month, Grab raised its 2022 revenue forecast, reported a narrower adjusted operating loss and said its food and grocery delivery business broke even three quarters ahead of the company’s expectations.

    Tan said in the memo that Southeast Asia has not, and will not, be spared from rising prices and interest rates, and the consequent effects on growth.

    Grab’s new measures “will also help us avert knee-jerk reactions that may interrupt our plans down the road,” he said.

    Decade-old Grab, a household name in eight Southeast Asian countries, has been trying to stem losses by focusing on higher-paying customers and lowering spending on incentives. Grab, which operates in 480 cities in eight countries, had about 8,800 staff at the end of 2021.

    In September, Grab’s chief operating officer, Alex Hungate, told Reuters that the company did not envision having to undertake mass layoffs as some rivals, including Uber Inc have done. Instead, Hungate said, the company would selectively hire, while reining in its financial-services ambitions.

    The memo circulated on Wednesday said Grab would “freeze the majority of current open job requisitions which are not in offer stage”. Tan wrote that requests to backfill and fill critical roles would need to be approved.

    Certain leaders at the company would not be eligible for raises in their upcoming reviews, while the travel and expense budget will be reduced by another 20% from the last guidance, according to the memo.

    Grab has more than 5 million registered drivers and more than 2 million merchants on its platform. It caught global attention in 2018 when it acquired Uber’s Southeast Asian business after a costly five-year battle.

    Tan said the company has been cautious with how it has spent money over the past two years, streamlining some businesses, tapering down incentives as well as slowing down hiring. These measures, Tan said, had helped Grab get closer to its profitability goals.

  • Grab appoints new managing director for Vietnam

    Grab appoints new managing director for Vietnam

    Grab Vietnam has appointed Alejandro Osorio as its new managing director as part of its drive to achieve “robust sustainable growth” in its local operation.

    Osorio, an American who has worked for Grab for five years, previously served as director for regional strategy and planning, operations, and most recently was managing director of Grab Thailand.

    “Alejandro’s experience in building up business strategy on a regional scale and developing high-performing local teams makes him the right leader for the next phase of growth for Grab in Vietnam,” Russell Cohen, group managing director, operations of Grab, said in a statement.

    Under Osorio’s leadership, Grab Vietnam aims to leverage the power of the superapp ecosystem to strengthen its leadership in the country. The company plans to advance technology to help improve the efficiency of its partners, offering more relevant everyday services and ecosystem-wide benefits for consumers.

    Osorio’s predecessor Nguyen Thai Hai Van left the Grab Vietnam managing director chair in April after two years of service.

  • JustKitchen enters Thailand via GrabKitchen deal

    JustKitchen enters Thailand via GrabKitchen deal

    Just Kitchen, an operator of ghost kitchens specializing in the development of delivery-only food brands, announces the expansion of JustKitchen’s in-house brands to Thailand (the ” Thailand Location “) via GrabKitchen. For the Thailand Location in the Phayathai area of Bangkok GrabKitchen provides the physical kitchen on a Kitchen-as-a-Service (” KaaS “) basis. The Thailand Location is situated near a busy commuter rail hub that is supplemented by a steady flow of other traffic. As previously announced in April, the Company hasa partnership with GrabExpress Inc. (” Grab “) in the Philippines that enables it to access GrabKitchen and GrabFood resources.

    Immediately upon opening, the Thailand Location will serve JustKtichen’s Master Don food brand, followed shortly after that by the K.Bao brand, featuring a customized menu with a local twist, as well as the Bodyfit brand. The Southeast Asian on-demand food delivery market is experiencing a high annual growth rate of 14%, which implies that the market will eventually reach a total value of $49.7 billion by 2030.

    Grab is Southeast Asia’s leading ‘super app’ based on gross merchandise value in 2021 in each of food delivers, mobility, and the e-wallets segment of financial services, according to Euromonitor.

    Management Commentary

    “International expansion is critical to our company’s growth plan, but it is also an opportunity to learn from the locals in each new market. In Thailand , the food delivery market is mainstream and growing, which is something we plan to study very carefully and hopefully master as well,” said Jason Chen , Co-Founder and Chief Executive Officer of JustKitchen. “People in Thailand want access to new and exciting foods that are affordable and convenient. We aim to provide exactly that to them,” added Mr. Chen.

  • Grab sees no big layoffs despite weak market

    Grab sees no big layoffs despite weak market

    Grab , Southeast Asia’s biggest ride-hailing and food delivery firm, does not envisage having to undertake mass layoffs as some rivals have done, and is selectively hiring, while reining in its financial service ambitions.

    Chief Operating Officer Alex Hungate said that earlier in the year, Grab had been worried about a global recession and was “very careful and judicious about any hiring”, and as a result, it had not got to the “desperate” point of a hiring freeze or mass layoffs.

    “Around mid-year, we did some kind of specific reorganisations, but I know other companies have been doing mass layoffs, so we don’t see ourselves in that category,” Hungate, 56, told Reuters in his first interview since joining Singapore-based Grab Holdings Ltd in January.

    The company was hiring for roles in data science, mapping technology and other specialised areas though every hire was a much bigger decision than it used to be, he said.

    “You want to make sure that we’re conserving capital. The hurdle for making a hire has definitely been raised.”

    Decade-old Grab, a household name in Southeast Asia, had about 8,800 staff at the end of 2021. Like its rivals, it has benefited from a boom in food services during the COVID-19 pandemic, while ride-hailing suffered.

    As economies open up, food delivery demand is softening while ride-hailing has yet to recover fully. Tech valuations have also fallen dramatically and inflation, slower growth and rising interest rates have emerged as risks.

    In recent weeks, Southeast Asia’s largest e-commerce firm Shopee cut jobs in various countries and shut some overseas operations after parent Sea reported widening losses and scrapped its annual e-commerce forecast.

    Hungate, a veteran of the financial services, logistics and food sectors, has spearheaded a push away from low-margin business lines as Grab races to turn profitable.

    Second-quarter loss narrowed to $572 million from $801 million a year earlier. But last month, it cut its gross merchandise volume outlook for the year, blaming a strong dollar and ebbing food delivery demand.

    Last month, Grab said it was shutting dozens of so-called dark stores – distribution hubs for on-demand groceries and slowing the roll-out of its “cloud kitchen” centralised facilities for deliveries.

    “The other area where we’ve really tightened our strategic intent is in financial services where we were growing payments, wallets and non-bank financial lending quite significantly off-platform and on our platform,” said Hungate.

    Grab reorganised its fintech unit this year to focus on more lucrative areas and Reuters reported on the exit of some senior executives.

    Grab is now mainly focussing on selling its lending products and insurance on its platform to merchants and drivers who often repay from their income streams on the platform.

    “As we make this shift, the business mix will move towards higher margins,” said Hungate.

    Grab, which operates in 480 cities in eight countries, has more than five million registered drivers and more than two million merchants on its platform.

    It caught global attention in 2018 when it acquired Uber’s Southeast Asian business after a costly five-year battle.

    Grab is betting on growing financial services by offering banking and other products with partner Singapore Telecommunications in key markets.

    It listed on the Nasdaq in December after a record $40 billion merger with a blank-check company.

    Hungate said it was “good timing” for the company to look again at how it spends money, given the increased scrutiny of finances and the need to respond to shareholders.

    “Maybe we were lucky in a sense that the discipline of being a public company came at just the right time,” he said, adding that Grab’s $7.7 billion cash liquidity meant it was one of the best capitalised industry players in Southeast Asia.

    Grab’s shares have tumbled about 60% this year to give it a market value of $10.6 billion.

    Reuters reported last month that Grab’s Indonesian rival GoTo was seeking to raise about $1 billion through a convertible bond issue.

    Hungate said Grab would provide details of its progress towards profitability and other metrics at its first investor day on Tuesday.

  • Grab says delivery business softening, still ‘laser-focused’ on profitability

    Grab says delivery business softening, still ‘laser-focused’ on profitability

    Singapore’s Grab Holdings Ltd on Thursday slashed its gross merchandise volume (GMV) outlook for the year, blaming a strong dollar and cooling demand for food delivery services as consumers return to dining outdoors.

    U.S.-listed shares of Grab fell 16% in early trading.

    Grab and its peers recorded surging revenues during the pandemic as consumers stuck at home relied on ordering food. But as restrictions ease in most parts of Southeast Asia, consumers are heading out to grab their meals.

    “What we are seeing with some of the growth trends and consumer behavior is dining out has taken place,” Chief Executive Officer Anthony Tan told analysts.

    “Customers want to save money… they may actually show a preference to order groceries to cook for themselves.” Tan added, indicating Grab may stand to benefit from its grocery delivery business.

    The company, which operates in 480 cities in eight countries in Southeast Asia, lifted the lower end of its revenue forecast for the year and said it was “laser-focused” on profitability as demand for rideshare across Southeast Asia peaks.

    Tan said the company now plans to focus on launching new products that will help Grab focus on “profitable loyal customers” and lower the cost of serving users.

    He also expects the rideshare business to rebound as economies reopen.

    To cut costs, Grab said it would roll back incentives and promotions to lure drivers and users, exit unprofitable businesses such as its “dark stores” in some countries, and slow hiring.

    The company forecast revenue between $1.25 billion and $1.3 billion for the year, compared with its prior range of $1.2 billion and $1.3 billion.

    Grab forecast GMV growth between 21% and 25% for the year. On a constant currency basis, GMV is expected to grow between 25% and 29%, compared with its prior range of 30% and 35%.

  • Grab says it canceled heatwave surcharge

    Grab says it canceled heatwave surcharge

    Grab canceled its new heatwave surcharge on motorbike rides on July 7 just one day after imposing it, Vietnam Competition and Consumer Authority announced Monday.

    It had announced a surcharge of VND3,000-5,000 ($0.13-0.21) meant for drivers.

    The consumer watchdog told the Singaporean ride-hailing company that all fees and surcharges Grab payable by customers must be clearly explained before implementation.

    It called on other ride-hailing companies to be transparent about them.

    Grab was the first to slap such a surcharge after many localities recorded unusually high temperatures but had said merely it would apply it during “extremely hot weather” without describing what it meant by the term.

    Grab Vietnam had an accumulated loss of VND4.36 trillion as of last year.

  • Grab adds heatwave surcharge on motorbike services

    Grab adds heatwave surcharge on motorbike services

    Grab has become the first ride-hailing firm in Vietnam to announce a new surcharge on its motorbike services starting Thursday.

    The surcharges are VND5,000 (20 U.S. cents) for each GrabBike trip and GrabFood order in some localities including HCMC, Hanoi, Hai Phong, Da Nang and Can Tho.

    GrabExpress services in HCMC and Hanoi will attract a surcharge of VND3,000 for each delivery.

    The surcharge will be applied “during extremely hot weather”, Grab said on its website without disclosing further details.

    The Singapore-based ride hailing firm is the first to roll out surcharges for hot weather conditions. Earlier, a surcharge of VND10,000-15,000 has been applied for late nights and the Lunar New Year holiday.

    In early March this year, Grab had raised all fares by VND500-2,500 to aid drivers coping with surging gasoline prices.

  • Ex Grab exec launches Philippine grocery-delivery startup Supah

    Ex Grab exec launches Philippine grocery-delivery startup Supah

    Social commerce startup SariSuki has introduced a new rapid grocery delivery service called Supah that delivers groceries across select parts of Metro Manila.

    During a media round table in Pasig City on Wednesday, SariSuki Co-Founder and Chief Executive Officer Brian P. Cu said that Supah offers a delivery service for grocery items such as snacks, condiments, beverages, fresh produce, and dry and frozen goods within 15 minutes.

    Supah’s delivery services are currently available in Makati City, Bonifacio Global City in Taguig, Pasig City, Mandaluyong City, San Juan City, Binondo district in City of Manila, and both New Manila and Timog areas of Quezon City.

    “Our business puts tremendous value on our customers’ time and needs. We see doing the grocery as effortless, time-saving and economical, while still making it possible to attend to other things. Thanks to our efficient ecosystem of suppliers, vendors and riders, we are able to fulfill this commitment without a delivery fee,” Mr. Cu said.

    Supah currently has eight “dark stores” where the goods are stored, and over 100 riders that cater close to 5 million people, and categorizes under quick commerce.

    Mr. Cu, a former president of Grab Philippines, said that Supah has been “quietly tested” since March over certain areas and has garnered a positive response, adding that the company raised around $11 million last year to fund the new venture.

    “When we first started it, no one thinks they need 15 groceries until they get groceries in 15 minutes, sometimes even a little bit less. The goal of Supah is [to] help reduce the time used up by today’s busy consumers in going to the supermarket, and in spending time away from the other activities that they can use with the time that they have,” Mr. Cu said.

    Lance Y. Gokongwei, JG Summit Holdings, Inc. president and chief executive, said that the company can help Supah by making products from its Universal Robina Corp. (URC) more accessible.

    JG Summit’s corporate venture capital, JG Digital Equity Ventures (JGDEV), is an investor in SariSuki. Mr. Gokongwei is also a board director of SariSuki.

    “I think my role really is to advise and provide some experience that I can share. As far as the JG Summit resource, of course, our ecosystem, we want to help as much as possible in terms of making products, for instance, from URC as accessible as possible to the company,” Mr. Gokongwei said.

    “Supah offers great potential as it tries to address the consumers’ evolving needs in grocery shopping by finding the optimal balance among several critical factors like speed, assortment, value, and convenience. This innovative technology will help shape the future of grocery shopping in the country,” he added.

    Moving forward, Mr. Cu said that the company seeks to expand, saying that 40 dark stores is enough to cover the entirety of Metro Manila.

    “We’re looking at expansion. But we want to prove (there’s) enough demand in the existing stores that we have now before we start investing in expansion,” Mr. Cu said.

    “To cover the entire Metro Manila in 15 minutes, we need to have 40 dark stores. But we’re not saying that we’re going to go to 40 next year,” he added.

  • Grab customer attention across channels with a diversified strategy

    Grab customer attention across channels with a diversified strategy

    E-commerce businesses are fighting for consumers’ attention at an extraordinary rate. In an industry that’s already heavily saturated, hundreds of emerging digital channels have made it increasingly difficult to stand out, writes Simon Kelly, solutions manager, Apac at ChannelAdvisor.

    Yet, connecting to a diverse pool of customers across multiple platforms is not impossible. Those with the right multichannel strategy will win in this volatile e-commerce climate.

    Still, it’s not a one-size-fits-all approach. It’s about knowing who your customers are and which channels they use, thoroughly understanding each channel’s requirements and streamlining consumers’ pathway to purchase.

    Let’s take a look at some of the best practices of winning brands in the multichannel e-commerce space.

    Best practices for multichannel e-commerce

    Whether you’re just starting out or optimising your existing multichannel strategy, diversifying your e-commerce presence is most successful when you:

    1. Connect to the right channels. Who do you want to reach? Which KPIs do you want to influence? Which channels will help you get there?
    2. Market at the right time. Increase visibility and put your products front and centre in the eyes of consumers. Invest in digital marketing and retail media to maximise your presence in each channel.
    3. Sell where consumers shop. Prepare your channels for sales. Whether through digital campaigns, marketplaces or social media, clarify the path to purchase so it’s easy for consumers to find you and complete their purchase.
    4. Fulfil customer expectations. Achieve automation and scale with the right fulfilment options. Many marketplaces now offer fulfilment capabilities for added compliance, increased conversion and greater expansion.
    5. Optimise with data and analytics. Test everything from assortments to ads to product descriptions. Continue what works and eliminate what doesn’t to maximise the use of your budget and fuel long-term success.

    Diversify your channel presence

    There are numerous options for diversifying your online offerings, from direct-to-consumer (D2C) sales to third-party marketplaces to social commerce. The key is deciding which option(s) make the most sense for your brand.

    Direct-to-consumer (DTC)

    Many long-time B2B companies are starting to directly engage with consumers for numerous financial, logistical and brand-related benefits. In the face of economic downtimes, D2C offers resiliency, as well as:

    • Increased revenue from new customers.
    • Consumer trust from direct brand relationships.
    • Higher quality data from first-party interactions.

    Third-party marketplace

    Marketplaces like Amazon, Ebay and Walmart now make up more than 67 per cent of global web sales. They help you reach larger audiences, test demand in new markets and try out new products. But to achieve marketplace success, you need:

    • Seamless integrations with the right marketplace(s) for your brand.
    • Product data that meets marketplace requirements.
    • Consistency across all sales channels.
    • Fulfilment and delivery plans.
    • Advertising to drive traffic and visibility.

    Even after a successful launch into a new marketplace and meeting its specific requirements, succeeding in the space means defending your position. One of the best ways to do this is by monitoring performance and conducting benchmarking.

    Wholesale channels

    Most brands use wholesale channels like retailers to sell their products online. To fulfil orders, they can either ship inventory to retailers or dropship through suppliers. Regardless of the method, it’s not something to simply “set and forget,” as changing consumer behaviours and supply can impact your brand reputation. It’s important to regularly monitor your retail partners for share of digital shelf, product availability, pricing, content quality and product reviews. If products aren’t visible on the shelf, consumers can’t purchase. If the price is incorrect or content quality is poor, conversions will go down and reviews will be negative.

    Social commerce

    Social media sites are now a very important part of the consumer journey. From Facebook and Instagram to TikTok and Snapchat, these sites are key research and discovery channels for younger audiences. In fact, 60 per cent of 18-to-25-year-olds have discovered products they’ve purchased on social media. That means brands must be there to meet them. The key to helping them convert is creating clear paths to purchase with buy now options and links to your site or preferred retailers.

    Shoppable media

    Digital marketing campaigns put your products directly in consumers’ line of sight. But if your ads send traffic to pages where shoppers can’t buy (e.g. a showcase website or out-of-stock page), you’re missing out on sales. Shoppable media makes digital campaigns shoppable, ensuring clicks go to pages with in-stock products for purchase. That way, you can increase conversions, create better consumer experiences and strengthen retailer relationships from any digital campaign on any channel.

    The fight for visibility in an increasingly crowded landscape doesn’t have to be overwhelming. ChannelAdvisor helps brands and retailers streamline the consumer path to purchase and improve digital campaigns across retail media sites from Amazon to Ebay. With ChannelAdvisor, you can streamline your e-commerce operations, expand to new channels and grow sales – all from a centralised platform.