Ride-hailing giant Grab is going to focus some of its efforts on Vietnam with a $500 million investment over the next five years to grow its activities in the country. The firm is looking to tap into fin-tech, mobility solutions, and logistics opportunities. It also plans to launch new services and expand its transport, food, and payments network in the country.
Specifically, Grab said it would align its growth strategy with the country’s Socio-Economic Development Plan, which aimed to drive economic restructuring fuelled by innovation and improvements in productivity, efficiencies, and competitiveness. The development plan outlined the government’s economic, social, and environmental goals for 2020 and beyond.
Grab is already quite big in Vietnam. For instance, the company is currently handling 300,000 food deliveries per day through GrabFood. It represents a 400% increase in gross merchandise volume during the first half of 2019. Grab drivers have generated close to $1 billion in revenue over the years.
Grab Holdings Inc. is a Singaporean transportation network company offering services that include peer-to-peer ridesharing, ride service hailing and food deliveries. In addition to transportation services, the company provides digital payments, door-to-door parcel delivery, and e-scooter sharing services via its mobile app. It mostly operates in the Asian region. It is also Singapore’s first “decacorn” (a startup with a valuation of over US$10 billion).
Over these years, Grab has built an expansive fleet of bike riders that move products in a hyper-local region as well as intra-city deliveries via our four wheeler network. Its logistics platform is for businesses ranging from restaurants, online grocers, offline and online retail commerce, general stores, pharmacies, banks, and telecoms. In other words, for any business that seeks to deliver a product regularly. It is mostly active in Southeast Asia.
“By the end of 2019, we will have invested more than US$200 million into the country to better the livelihoods of users and partners of our ride-hailing, food delivery, logistics, and cashless payments services,” said Jerry Lim, country head of Grab Vietnam.
With this latest announcement, Grab is primarily looking to replicate its regular strategy at a smaller scale in Vietnam. In particular, Grab is once again partnering with government officials. It has announced a “Tech for Good” road map in the country that should foster Vietnam’s economic development at large.
Grab plans to provide work opportunities in 63 cities to fight unemployment. The company is looking for drivers, delivery persons, and merchants. They will be able to access credit and insurance products.
Lastly, taking forward the companies policy of social empowerment, it has planned to invest in local startups through GrabVentures. Grab will also launch programs to improve digital and financial literacy. Finally, Grab plans to share data with local governments to tackle traffic congestion and pollution.