Mobilizing $ 6.5 billion, enough to "burn" for another 15 years, what is Grab / what is lost in each trip?

Grab is still in the money-burning phase and never intended to stop. They burned violently on every front from calling cars, delivering food to electronic wallets. Perhaps coming from the saying "There will be unlimited Grab support" from Softbank's boss.

I don't know how to actually support this support, but one thing is for sure, Grab's competitors will have to be wary of this statement.

The two most important criteria that Grab's operating team in each country must achieve are Trip number and CPR (Cost Per Ride: The amount of money to get each trip).

In addition, because Grab hours have positioned themselves as super applications Trip number It is widely understood that transactions will be more accurate. A trip is a transaction, a delivery order is also a transaction and a payment of Moca is also a transaction.


For each ride, Partner's Grab (driver) is 28.375% of which 25% is Grab's commission and 3.375% is 3% VAT Grab and 1.5% is partner's personal income tax. Over 25% of commissions received, Grab must pay 10% VAT.

For example, a ride of 100,000 VND. Grab is collected at VND 25,000 and fully paid VND 2,500. The partner received VND 75,000 of which VND 2,250 was VAT (Grab collection) and VND 1,125 was personal income tax (Grab also collected). So Grab "collected" 22.5% on each transaction.

Not to mention price increases according to demand. Usually increases very high during rush hour. The formula is still the same.

At work time, the price of this bus is VND 263,000 while normally only VND 79,000
At the same time, the same route, Grab's price is superior to other applications

In addition, the recent online community also has Grab because of the level of spending and customer data (including what phones they use, how much they cost) to offer different prices for the same operation. submit.

Along the way, iPhone X displays GrabCar prices 78% higher than an Android


Usually Grab will lose 3 intervals per transaction.

First, promotion code. Recently, Grab has spent a little bit on promotion code because partly because the opponent is not as strong as Uber in the past. A Grab part uses the power of data analysis to estimate the income of each customer profile to optimize the cost for this range.

Currently Grab usually only 50% promotion but maximum control of 20-25,000 VND and binding usage time is after 09:00 to 16:59 and after 19:00. That is, evading the rush hour. On average, each transaction of 100,000 VND deduces this reduction of 22.5%. Just get the commission commission received.

50% discount up to 20,000 VND and binding usage time

The second is the GrabRewards program. For every 1,150 points, a gift of VND 50,000 will be exchanged. For a 50,000 VND coupon for customers, Grab will have to spend about 85% of the coupon value (equivalent to VND 42,500) to buy. For customers, they have to spend VND 1,250,000 to get 1,150 points. Thus, it costs an additional VND 1,250,000 to Grab VND 42,500, equivalent to 3.4%.

Redeem 1,150 points for equivalent gifts VND 50,000 on GrabRewards

Tuesday, in recent weeks Grab has continuously launched a prize-winning stamp program. The first 4 stamps are awarded 50,000 VND for GrabFood. 5 more stamps are given 1 discount code of VND 30,000 for GrabCar / GrabBike and VND 80,000 for GrabFood. Suppose each transaction reaches VND100,000, resulting in a turnover of VND900,000 and Grab an additional VND160,000 (equivalent to 17.8%). Fortunately, here is the "get it fat frying" technique because the gifts from the stamp must be used for further use and continue to create transactions.

So Grab lost 22.5% + 3.4% + 17,% = 43.7%. While earning 22.5%. So Grab is 21.2%, equivalent to nearly 1 USD. This is a complete loss in Grab's plan.

Not only that, Grab last week released a new move to retain users, called the Challenge. Grab's first challenge was 20,000 preferential rates from now until July 31, 2019 for those who complete a GrabCar trip, a GrabBike trip, a GrabFood trip, a GrabExpress trip and a Moca transaction is okay. plus 50,000 VND for Moca wallet.

New Challenge section launched on Grab app

5 transactions, estimated revenue of 500,000 VND. So with Challenge, Grab takes 10% more.

However, although Grab spent a lot of money, in general everything is still under their control because the promotion category is not everyone's satisfaction. In the category of GrabRewards, it is possible for the main exchange visitor to go to Grab to use. The limits of stamp and Challenge are all "taking it to fry it" so if "sharing" this cost for two two-way transactions, the pressure will decrease significantly.

Thus, Grab averages only about 1 USD / transaction. With the goal of mobilizing 6.5 billion USD, Grab surplus will burn like this for at least 15 years. Not to mention the extra mobilization and other competitors leaving the track because of exhaustion.

The winner takes it all (The winner takes it all). And this is clearly the strategy Grab uses to "suppress" the Southeast Asian market.


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