Grab operates on a multi-sided platform business model, connecting users with various services such as ride-hailing, food delivery, and financial services. Its revenue model primarily relies on commissions from transactions, subscription, advertising, and partnerships with businesses for marketing and promotions. To Know More https://www.abservetech.com/blog/grab-business-and-revenue-model/ https://www.abservetech.com/uber-clone/

1. Grab Business Model & Revenue Model

2. On-demand service apps provide affordable and efficient services. Anytime a user wants to order
food, they can effortlessly do so with the help of food delivery apps. If you are struggling to hail a
ride, taxi booking apps come to the rescue. We have begun to rely on on-demand apps for our daily
activities. As many as about 22.4 million customers are drawn to the on-demand market every year.
The market value of on-demand apps is estimated to reach $335 billion by 2025. Grab, an on-
demand app with headquarters in Singapore, provides essential services aiming to make our lives
easy. In this blog, we will look into the Grab business model and revenue model.

3. WHAT IS GRAB?
Grab, a Singapore-based super app, began its operations in 2021. Initially, Grab offered only ride-
hailing services. It then evolved into a super app offering a wide range of services, like payments,
insurance, food, and grocery delivery. It acts as a platform connecting customers and service
providers.
Grab operates in eight Southeast Asian countries, including Singapore, Malaysia, Cambodia,
Indonesia, and Myanmar. It acquired Uber’s business in the region in 2018. Today, It is one of the
most valuable brands, with a market capitalization of $12.90 billion.

4. HOW DOES GRAB WORK?
Grab follows an on-demand business model that connects customers with service providers. The
Singapore-based super app provides a range of services. Users can satisfy their needs from one
platform instead of using separate apps for booking rides and ordering food.
In addition to letting users rely on the platform for their mobility and delivery needs, they can also
use the app for financial services. Grab, in addition to enabling secure payments, offers insurance
and investment services.

5. GRAB BUSINESS MODEL
The Grab business model works on the idea of a super app. The concept of a super app became
popular after China’s WeChat gained widespread recognition. The fact that users can access
multiple services from a single platform has made it a preferred on-demand service app.
The business model of Grab is simple. It lets users request services from the providers, acting as a
platform connecting the two groups. It operates in over 500 cities and reports about 34.9 million
monthly transactional users.
CUSTOMER SEGMENTS
The business model of Grab involves three groups- customers, service providers, and businesses.

6. Customers
Customers are an integral part of the super app. They generate demand and directly help an app
like Grab boost revenue. It enables them to request services from their app and matches them with
a service provider. The app then bills them, for which they can pay using any of the multiple
payment modes available.
Service Providers
Drivers and other service providers can partner with the super app and increase their earnings.
Flexible working hours make it easy for them to choose working hours conveniently.
Businesses
By partnering with Grab, they can improve their visibility and engage with more users. This way,
they can boost their sales and revenue.

7. VALUE PROPOSITION
1. Grab aims to offer convenience to users by letting them access services of a diverse range
from a single platform.
2. Riders can enjoy their rides in the vehicle type of their choice, as Grab provides multiple
options for their convenience.
3. Customers can expect to receive their deliveries on time as Grab offers reliable services.
4. Grab offers discounts, helping consumers access the services at a far lower price. It boosts
customer satisfaction.

8. GRAB REVENUE MODEL
Grab is one of the most valuable firms in Southeast Asia. Often called the Uber of Southeast Asia, it
made a revenue of over $1.43 billion in 2022.
Let us look into the revenue model to understand how Grab makes money.
1. COMMISSION ON SERVICES
It is a primary revenue source. Grab charges commission fees every time a user books rides on the
app. When a customer orders food through the app, a certain percentage of the total order amount
is charged as commission fees.
Grab charges 16%-25% for every ride booked on the app. It is in the range of 15%-30% of the total

9. 2. COMMISSION FROM GRABPAY
Grab charges around 1% of the total charge from customers when they use GrabPay. A transaction
fee is seen as another steady revenue stream. It has also introduced virtual prepaid in partnership
with Mastercard. This collaboration enables over 100 million of Grab’s registered users to use a
virtual Mastercard. It has reached a vast population that no other fintech company has achieved.
3. REVENUE FROM GRABEXPRESS
The revenue model of Grab includes income from GrabExpress also. GrabExpress lets users send
packages, documents, mail letters, and more. Customers can use this service to send items in the
weight range of 500g to 50kg. It charges some amount as delivery fees when a customer uses its
courier service.

10. 4. REVENUE FROM GRABADS
GrabAds lets businesses connect with customers by advertising their products and services. It
includes both online and offline modes. Firms can grow their user base this way.
The revenue model of Grab lets in a significant income through GrabAds. It has generated more
than $245 million by providing advertising services.
INTERESTED IN BUILDING AN APP LIKE GRAB?
The success of the Grab business model is proof of the existing demand for on-demand apps. Data
shows the on-demand market will boom in the upcoming years. Several factors, including the
changing preferences of customers as a result of the efficiency and convenience that an app like
Grab offers, make such on-demand apps highly popular and successful.

11. If you are also interested in building an app like Grab, now is the time to capitalize on the growing
demand. We help you launch a business like Grab with our product. You can leverage our team’s
expertise and experience to develop the app.
To KNOW MORE
Link: https://www.abservetech.com/blog/grab-business-and-revenue-model/
Website: https://www.abservetech.com/uber-clone/
TO CONNECT WITH US
WhatsApp: +91 9222 47 9222
Skype: Abservetech Support
Email ID: support@abservetech.com