SlideShare a Scribd company logo
1 of 10
Download to read offline
1|
GRABTAXI’s Strategy
In Southeast Asia Context
What’s going on and what’s ahead?
Vincent Chan – Dec 2015
2|
UBERvsGrabtaxiinSoutheastAsia
Started by competing with taxi offering UberBlack limousine Started by partnering with taxi
Aggresive + Corporate-ish Friendly + Neighbourhood-ish image
Globalization Strategy Localization Strategy
Seen as hostile competitor by taxi operators, regulators Work as partner with regulators, taxi operators, community
Majority of fleet comprises of private cars currently Larger car fleet with taxis + private cars
3|
http://blogs-images.forbes.com/liyanchen/files/2015/09/0908_uber-map2_2000.jpg
http://b-i.forbesimg.com/parmyolson/files/2013/11/top-3-messenger-apps-copy.jpg
The ride sharing competition may evolve similarly to social messaging app, with no global clear
winner but local leader in each region. Acquisition may occur (Eg. Facebook acquired Whatsapp) to
reduce competition and increase user base.
WhoisLeading?
4|
SouthEastAsia
Anuniqueregion
Singapore
• Taxis are in low supply and high demand during peak hours
• Car ownership cost is unlikely to go down
• Public transport is barely coping with demand
• Government is supportive to reduce cars on road and improve taxi/ride sharing availability
• Mobile network and infrastructure are mature
Malaysia
• Taxis have bad reputation among locals and visitors with safety issue and service attitude
• Public transport is not well planned
• Traffic congestion is a problem
• Mobile network and infrastructure are developing
As a whole
• Each country has their own language and culture, coupled with different regulators.
• Western based companies are not able to penetrate South East Asia with a single unified
strategy.
• Market favours local players
5|
Industry’sChallenge
Rivalry
among
existing
competitors
Threat of
new
entrants
Bargaining
Power of
Suppliers
Threat of
Substitutes
Bargaining
Power of
Customers
Moderate
Previously a low
upfront cost game,
attracting new players
Moderate
Taxi drivers are relying on
Grabtaxi’s large driver fleet.
Competitors do not have big
fleet at the moment
Moderate
Taxi operators may overhaul
their taxi booking app and
some users still use SMS
booking.
High
Customer has multiple
alternatives (Uber, EasyTaxi,
Taxi operators)
Moderate
Current rivalry within South
East Asia is moderate with
Uber and EasyTaxi
Provide more sign up bonus and
incentive to keep barrier of entry
high
Leverage on knowledge of local
market and fleet size to reduce the
effectiveness of competitors
Relentlessly grow fleet
size and upgrade taxi
job matching speed &
accuracy to keep
switching cost high.
Expand the functionality of
apps and product offering to
keep switching cost high.
Introduce reward system for
loyal customer Expand the functionality of
apps and product offering
SMS booking functionality
GrabTaxi’s possible
response strategy
6|
Positioning,What’sNext? Global Market
Local Market
DiversificationSpecialization
Logistic Company
Transportation
Company
UberX
UberTaxi
UberEats
UberCargo
UberRush
GrabTaxi
GrabCar
GrabHitch
GrabBikeTaxi Operators
Taxi Hailing Platform
GrabTaxi’s current strategy is more likely to experiment
with new complementary service offerings that leverage
current strength in South East Asia
Expanding into global market
is unlikely at this stage with
limited funding to take on
competitors in their
established turf.
7|
What’sahead?ProfitMarginRisk
Revenue
Cost
Revenue
Cost
Risk of Cost Increase
• Additional R&D & talents investment to remain
technologically competitive
• Potentially higher sign up cost and incentives to
acquire and retain drivers to maintain barrier of
entry
• Potential private fleet insurance requirement
• Potential change to classify driver as partial
employee
• Potential more cost for legal and lobbying fee
Pressure on Revenue
• Potential price war from competitors who may
introduce 100% revenue to be kept by drivers to
squeeze out competitors.
• Competitors to band together to create non-
GrabTaxi network
• Macroeconomic conditions
First mover advantage for South East Asia
Local market favours local player
Low cost of entry, Low CAPEX
Minimal infrastructure investment
Moving Forward
8|
The3PillarsofFocus
SAFETYSPEED CERTAINTY
Superior App and Platform to ensure fastest ride matching
Continue to increase size of fleet
Adequate investment in IT infrastructure for growth
Data Analytics and data privacy safekeeping for users and drivers
Never compromise on strict taxi
driver screening during growth
9|
Whilefocusingongrowth,
GrabTaxiisfacedwith
Constant pressure to
remain ahead of the curve
in matching taxi/ride to
demand
Customer may permanently
switch to other app which
can work faster, even by
seconds.
Drivers want the fastest
match possible.
Constant pressure to
improve customer
satisfaction, even not
within GrabTaxi’s
responsibility
Any dispute between
drivers and passengers will
be part of Grabtaxi’s
customer experience.
Risk of accidents and
criminal cases
Such events will create
negative publicity even
though it may not be within
control of the company.
Possible regulatory
change
Drivers may be considered
partial employees in the
future, demanding more
compensation.
Car insurance price may
increase.
10|
FeedbackfromTaxiDrivers
withmeasaCustomer
Grabtaxi App has lesser
MIA passengers
compared to Comfort
App
Grabtaxi App has lesser
MIA passengers
compared to Comfort
App
I can now rent taxi from
taxi companies other than
Comfort. Lower rental
I can now rent taxi from
taxi companies other than
Comfort. Lower rental
I have to ensure my service
attitude is right, as customers
may rate me via the app
I have to ensure my service
attitude is right, as customers
may rate me via the app
Taxi Company’s APP: Whoever
fast fingers get the job.
Grabtaxi’s APP: Whoever
nearest get the job
Taxi Company’s APP: Whoever
fast fingers get the job.
Grabtaxi’s APP: Whoever
nearest get the job
With GrabTaxi’s booking, I know
where the customer want to go
before accepting, so I can plan
my route.
With GrabTaxi’s booking, I know
where the customer want to go
before accepting, so I can plan
my route.

More Related Content

What's hot

10 Step Marketing Plan - UBER
10 Step Marketing Plan - UBER10 Step Marketing Plan - UBER
10 Step Marketing Plan - UBERKEN5JK
 
Grab Case Study by Brandnow.asia.pptx
Grab Case Study by Brandnow.asia.pptxGrab Case Study by Brandnow.asia.pptx
Grab Case Study by Brandnow.asia.pptxPacharee Pantoomano
 
Uber presentation final
Uber presentation finalUber presentation final
Uber presentation finalSkylar Dann
 
Uber a modern age business strategy
Uber   a modern age business strategyUber   a modern age business strategy
Uber a modern age business strategyDhruvajyoti Roy
 
Uber Business Model Simulation
Uber Business Model SimulationUber Business Model Simulation
Uber Business Model Simulationyensunchoi
 
Uber's Rapid Growth with Innovative Strategy
Uber's Rapid Growth with Innovative Strategy Uber's Rapid Growth with Innovative Strategy
Uber's Rapid Growth with Innovative Strategy Mubeena Soomro
 
Smart Taxi Presentation - Enter the future of taxi dispatch service
Smart Taxi Presentation - Enter the future of taxi dispatch serviceSmart Taxi Presentation - Enter the future of taxi dispatch service
Smart Taxi Presentation - Enter the future of taxi dispatch serviceSmart Taxi - Gruppo Biesse
 
Application of the Strategic Management Theories in Uber Bangladesh
Application of the Strategic Management Theories in Uber BangladeshApplication of the Strategic Management Theories in Uber Bangladesh
Application of the Strategic Management Theories in Uber BangladeshPantho Sarker
 
Uber vs Grab SWOT Anaysis
Uber vs Grab SWOT AnaysisUber vs Grab SWOT Anaysis
Uber vs Grab SWOT AnaysisShooger
 
Uber Presentation
Uber PresentationUber Presentation
Uber PresentationKyle Lake
 
Grab Conceptual Task
Grab Conceptual TaskGrab Conceptual Task
Grab Conceptual TaskAnne David
 
Taxi wars UBER vs OLA
Taxi  wars  UBER vs OLA Taxi  wars  UBER vs OLA
Taxi wars UBER vs OLA deepikaparwani
 
Uber - Managing Information Systems
Uber - Managing Information SystemsUber - Managing Information Systems
Uber - Managing Information SystemsAjoy Raj
 
Uber's Market Strategy - An example of modern day business models
Uber's Market Strategy - An  example of modern day business modelsUber's Market Strategy - An  example of modern day business models
Uber's Market Strategy - An example of modern day business modelsRahul Shaha
 
CrowdSmart Parking System
CrowdSmart Parking SystemCrowdSmart Parking System
CrowdSmart Parking SystemRiri Kusumarani
 

What's hot (20)

10 Step Marketing Plan - UBER
10 Step Marketing Plan - UBER10 Step Marketing Plan - UBER
10 Step Marketing Plan - UBER
 
Grab Case Study by Brandnow.asia.pptx
Grab Case Study by Brandnow.asia.pptxGrab Case Study by Brandnow.asia.pptx
Grab Case Study by Brandnow.asia.pptx
 
RideConnect Pitch Deck
RideConnect Pitch DeckRideConnect Pitch Deck
RideConnect Pitch Deck
 
Ride-sharing platforms.pptx
Ride-sharing platforms.pptxRide-sharing platforms.pptx
Ride-sharing platforms.pptx
 
Uber presentation final
Uber presentation finalUber presentation final
Uber presentation final
 
Uber a modern age business strategy
Uber   a modern age business strategyUber   a modern age business strategy
Uber a modern age business strategy
 
Uber Business Model Simulation
Uber Business Model SimulationUber Business Model Simulation
Uber Business Model Simulation
 
Uber's Rapid Growth with Innovative Strategy
Uber's Rapid Growth with Innovative Strategy Uber's Rapid Growth with Innovative Strategy
Uber's Rapid Growth with Innovative Strategy
 
Uber case study
Uber case studyUber case study
Uber case study
 
Smart Taxi Presentation - Enter the future of taxi dispatch service
Smart Taxi Presentation - Enter the future of taxi dispatch serviceSmart Taxi Presentation - Enter the future of taxi dispatch service
Smart Taxi Presentation - Enter the future of taxi dispatch service
 
Uber presentation
Uber presentationUber presentation
Uber presentation
 
Uber
UberUber
Uber
 
Application of the Strategic Management Theories in Uber Bangladesh
Application of the Strategic Management Theories in Uber BangladeshApplication of the Strategic Management Theories in Uber Bangladesh
Application of the Strategic Management Theories in Uber Bangladesh
 
Uber vs Grab SWOT Anaysis
Uber vs Grab SWOT AnaysisUber vs Grab SWOT Anaysis
Uber vs Grab SWOT Anaysis
 
Uber Presentation
Uber PresentationUber Presentation
Uber Presentation
 
Grab Conceptual Task
Grab Conceptual TaskGrab Conceptual Task
Grab Conceptual Task
 
Taxi wars UBER vs OLA
Taxi  wars  UBER vs OLA Taxi  wars  UBER vs OLA
Taxi wars UBER vs OLA
 
Uber - Managing Information Systems
Uber - Managing Information SystemsUber - Managing Information Systems
Uber - Managing Information Systems
 
Uber's Market Strategy - An example of modern day business models
Uber's Market Strategy - An  example of modern day business modelsUber's Market Strategy - An  example of modern day business models
Uber's Market Strategy - An example of modern day business models
 
CrowdSmart Parking System
CrowdSmart Parking SystemCrowdSmart Parking System
CrowdSmart Parking System
 

Similar to GrabTaxi Strategy

13-benefits-of-building-an-app-like-uber-dmsblog.pdf
13-benefits-of-building-an-app-like-uber-dmsblog.pdf13-benefits-of-building-an-app-like-uber-dmsblog.pdf
13-benefits-of-building-an-app-like-uber-dmsblog.pdfDMSInfosystem1
 
Taxi App Development: An Extensive Guide with Detailed Steps
Taxi App Development: An Extensive Guide with Detailed StepsTaxi App Development: An Extensive Guide with Detailed Steps
Taxi App Development: An Extensive Guide with Detailed StepsZimbleCodeAustralia
 
Taxi Booking App Development_ a comprehensive guide.pdf
Taxi Booking App Development_ a comprehensive guide.pdfTaxi Booking App Development_ a comprehensive guide.pdf
Taxi Booking App Development_ a comprehensive guide.pdfJPLoft Solutions
 
The Future of Ride-Hailing_ Trends in Taxi Booking App Development.pptx
The Future of Ride-Hailing_ Trends in Taxi Booking App Development.pptxThe Future of Ride-Hailing_ Trends in Taxi Booking App Development.pptx
The Future of Ride-Hailing_ Trends in Taxi Booking App Development.pptxZoeDaniel5
 
Importance of a Taxi App For a Taxi App Development Company
Importance of a Taxi App For a Taxi App Development CompanyImportance of a Taxi App For a Taxi App Development Company
Importance of a Taxi App For a Taxi App Development CompanyCode Brew Labs
 
Nekso intro - InnovatorsRace50
Nekso intro - InnovatorsRace50Nekso intro - InnovatorsRace50
Nekso intro - InnovatorsRace50Ramon Garcia Lazar
 
APIdays Helsinki 2019 - Interoperability and Partnerships in MaaS - Working E...
APIdays Helsinki 2019 - Interoperability and Partnerships in MaaS - Working E...APIdays Helsinki 2019 - Interoperability and Partnerships in MaaS - Working E...
APIdays Helsinki 2019 - Interoperability and Partnerships in MaaS - Working E...apidays
 
BlaBlaCar Clone Carpooling App Attractive to Entrepreneurs
BlaBlaCar Clone Carpooling App Attractive to EntrepreneursBlaBlaCar Clone Carpooling App Attractive to Entrepreneurs
BlaBlaCar Clone Carpooling App Attractive to EntrepreneursOn Demand Clone
 
My opinions on Lyft
My opinions on LyftMy opinions on Lyft
My opinions on LyftZackary Kim
 
Solving today’s Traffic Problems with Sustainable Ride Hailing Solution
Solving today’s Traffic Problems with Sustainable Ride Hailing SolutionSolving today’s Traffic Problems with Sustainable Ride Hailing Solution
Solving today’s Traffic Problems with Sustainable Ride Hailing SolutionOn Demand Clone
 
Achieve Your Ride-Sharing Goals with Our Proven BlaBla Car App Development So...
Achieve Your Ride-Sharing Goals with Our Proven BlaBla Car App Development So...Achieve Your Ride-Sharing Goals with Our Proven BlaBla Car App Development So...
Achieve Your Ride-Sharing Goals with Our Proven BlaBla Car App Development So...V3cube
 
A Complete Guide to Build Online Taxi Booking Software.pdf
A Complete Guide to Build Online Taxi Booking Software.pdfA Complete Guide to Build Online Taxi Booking Software.pdf
A Complete Guide to Build Online Taxi Booking Software.pdfNilaadvika
 
Marketing Plan : Grab
Marketing Plan : GrabMarketing Plan : Grab
Marketing Plan : GrabArie Lai
 
Why need to invest in taxi business app know in detail
Why need to invest in taxi business app know in detailWhy need to invest in taxi business app know in detail
Why need to invest in taxi business app know in detailEliza Smith
 
Policy in Transportation Network Services in Indonesia
Policy in Transportation Network Services in IndonesiaPolicy in Transportation Network Services in Indonesia
Policy in Transportation Network Services in IndonesiaBhara Y
 
Ride Sharing App Development- A Gateway to Enhance Travel & Tourism Industry.pdf
Ride Sharing App Development- A Gateway to Enhance Travel & Tourism Industry.pdfRide Sharing App Development- A Gateway to Enhance Travel & Tourism Industry.pdf
Ride Sharing App Development- A Gateway to Enhance Travel & Tourism Industry.pdfTechugo
 
Amplify Business Efficiency & Rapid Growth With Uber Clone Taxi App
Amplify Business Efficiency & Rapid Growth With Uber Clone Taxi AppAmplify Business Efficiency & Rapid Growth With Uber Clone Taxi App
Amplify Business Efficiency & Rapid Growth With Uber Clone Taxi AppeSiteWorld TechnoLabs Pvt. Ltd.
 
A Complete Guide to Build Online Taxi Booking Software.pptx
A Complete Guide to Build Online Taxi Booking Software.pptxA Complete Guide to Build Online Taxi Booking Software.pptx
A Complete Guide to Build Online Taxi Booking Software.pptxNilaadvika
 

Similar to GrabTaxi Strategy (20)

13-benefits-of-building-an-app-like-uber-dmsblog.pdf
13-benefits-of-building-an-app-like-uber-dmsblog.pdf13-benefits-of-building-an-app-like-uber-dmsblog.pdf
13-benefits-of-building-an-app-like-uber-dmsblog.pdf
 
Taxi App Development: An Extensive Guide with Detailed Steps
Taxi App Development: An Extensive Guide with Detailed StepsTaxi App Development: An Extensive Guide with Detailed Steps
Taxi App Development: An Extensive Guide with Detailed Steps
 
Taxi Booking App Development_ a comprehensive guide.pdf
Taxi Booking App Development_ a comprehensive guide.pdfTaxi Booking App Development_ a comprehensive guide.pdf
Taxi Booking App Development_ a comprehensive guide.pdf
 
The Future of Ride-Hailing_ Trends in Taxi Booking App Development.pptx
The Future of Ride-Hailing_ Trends in Taxi Booking App Development.pptxThe Future of Ride-Hailing_ Trends in Taxi Booking App Development.pptx
The Future of Ride-Hailing_ Trends in Taxi Booking App Development.pptx
 
Importance of a Taxi App For a Taxi App Development Company
Importance of a Taxi App For a Taxi App Development CompanyImportance of a Taxi App For a Taxi App Development Company
Importance of a Taxi App For a Taxi App Development Company
 
Nekso intro - InnovatorsRace50
Nekso intro - InnovatorsRace50Nekso intro - InnovatorsRace50
Nekso intro - InnovatorsRace50
 
APIdays Helsinki 2019 - Interoperability and Partnerships in MaaS - Working E...
APIdays Helsinki 2019 - Interoperability and Partnerships in MaaS - Working E...APIdays Helsinki 2019 - Interoperability and Partnerships in MaaS - Working E...
APIdays Helsinki 2019 - Interoperability and Partnerships in MaaS - Working E...
 
BlaBlaCar Clone Carpooling App Attractive to Entrepreneurs
BlaBlaCar Clone Carpooling App Attractive to EntrepreneursBlaBlaCar Clone Carpooling App Attractive to Entrepreneurs
BlaBlaCar Clone Carpooling App Attractive to Entrepreneurs
 
My opinions on Lyft
My opinions on LyftMy opinions on Lyft
My opinions on Lyft
 
Carnama mobile app
Carnama mobile appCarnama mobile app
Carnama mobile app
 
Solving today’s Traffic Problems with Sustainable Ride Hailing Solution
Solving today’s Traffic Problems with Sustainable Ride Hailing SolutionSolving today’s Traffic Problems with Sustainable Ride Hailing Solution
Solving today’s Traffic Problems with Sustainable Ride Hailing Solution
 
Achieve Your Ride-Sharing Goals with Our Proven BlaBla Car App Development So...
Achieve Your Ride-Sharing Goals with Our Proven BlaBla Car App Development So...Achieve Your Ride-Sharing Goals with Our Proven BlaBla Car App Development So...
Achieve Your Ride-Sharing Goals with Our Proven BlaBla Car App Development So...
 
A Complete Guide to Build Online Taxi Booking Software.pdf
A Complete Guide to Build Online Taxi Booking Software.pdfA Complete Guide to Build Online Taxi Booking Software.pdf
A Complete Guide to Build Online Taxi Booking Software.pdf
 
BMC and VPC - Lyft
BMC and VPC - LyftBMC and VPC - Lyft
BMC and VPC - Lyft
 
Marketing Plan : Grab
Marketing Plan : GrabMarketing Plan : Grab
Marketing Plan : Grab
 
Why need to invest in taxi business app know in detail
Why need to invest in taxi business app know in detailWhy need to invest in taxi business app know in detail
Why need to invest in taxi business app know in detail
 
Policy in Transportation Network Services in Indonesia
Policy in Transportation Network Services in IndonesiaPolicy in Transportation Network Services in Indonesia
Policy in Transportation Network Services in Indonesia
 
Ride Sharing App Development- A Gateway to Enhance Travel & Tourism Industry.pdf
Ride Sharing App Development- A Gateway to Enhance Travel & Tourism Industry.pdfRide Sharing App Development- A Gateway to Enhance Travel & Tourism Industry.pdf
Ride Sharing App Development- A Gateway to Enhance Travel & Tourism Industry.pdf
 
Amplify Business Efficiency & Rapid Growth With Uber Clone Taxi App
Amplify Business Efficiency & Rapid Growth With Uber Clone Taxi AppAmplify Business Efficiency & Rapid Growth With Uber Clone Taxi App
Amplify Business Efficiency & Rapid Growth With Uber Clone Taxi App
 
A Complete Guide to Build Online Taxi Booking Software.pptx
A Complete Guide to Build Online Taxi Booking Software.pptxA Complete Guide to Build Online Taxi Booking Software.pptx
A Complete Guide to Build Online Taxi Booking Software.pptx
 

More from Vincent Chan Yuen Mun (9)

Disney's Business Overview
Disney's Business OverviewDisney's Business Overview
Disney's Business Overview
 
SQL JOIN Explained Visually
SQL JOIN Explained VisuallySQL JOIN Explained Visually
SQL JOIN Explained Visually
 
Concept 2 v1
Concept 2 v1Concept 2 v1
Concept 2 v1
 
Resume 2016 disney
Resume 2016 disneyResume 2016 disney
Resume 2016 disney
 
Webiko
WebikoWebiko
Webiko
 
Example
Example Example
Example
 
Sales proposal skycafe
Sales proposal skycafeSales proposal skycafe
Sales proposal skycafe
 
Presentation1
Presentation1Presentation1
Presentation1
 
NUS Chemical Engineering Alumni Group
NUS Chemical Engineering Alumni GroupNUS Chemical Engineering Alumni Group
NUS Chemical Engineering Alumni Group
 

Recently uploaded

Constitution of Company Article of Association
Constitution of Company Article of AssociationConstitution of Company Article of Association
Constitution of Company Article of Associationseri bangash
 
Elevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO ServicesElevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO ServicesHaseebBashir5
 
stock price prediction using machine learning
stock price prediction using machine learningstock price prediction using machine learning
stock price prediction using machine learninggauravwankar27
 
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdfProgress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdfHolger Mueller
 
Raising Seed Capital by Steve Schlafman at RRE Ventures
Raising Seed Capital by Steve Schlafman at RRE VenturesRaising Seed Capital by Steve Schlafman at RRE Ventures
Raising Seed Capital by Steve Schlafman at RRE VenturesAlejandro Cremades
 
MEANING AND CHARACTERISTICS OF TAXATION.
MEANING AND CHARACTERISTICS OF TAXATION.MEANING AND CHARACTERISTICS OF TAXATION.
MEANING AND CHARACTERISTICS OF TAXATION.abejeblooda
 
Stages of Startup Funding - An Explainer
Stages of Startup Funding - An ExplainerStages of Startup Funding - An Explainer
Stages of Startup Funding - An ExplainerAlejandro Cremades
 
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg PfizerJual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg PfizerPusat Herbal Resmi BPOM
 
How to refresh to be fit for the future world
How to refresh to be fit for the future worldHow to refresh to be fit for the future world
How to refresh to be fit for the future worldChris Skinner
 
Beyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic AccountingBeyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic AccountingYourLegal Accounting
 
Powerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metricsPowerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metricsCaitlinCummins3
 
Navigating Tax Season with Confidence Streamlines CPA Firms
Navigating Tax Season with Confidence Streamlines CPA FirmsNavigating Tax Season with Confidence Streamlines CPA Firms
Navigating Tax Season with Confidence Streamlines CPA FirmsYourLegal Accounting
 
PitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for StartupsPitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for StartupsAlejandro Cremades
 
Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...
Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...
Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...BabaJohn3
 
Unlocking Growth The Power of Outsourcing for CPA Firms
Unlocking Growth The Power of Outsourcing for CPA FirmsUnlocking Growth The Power of Outsourcing for CPA Firms
Unlocking Growth The Power of Outsourcing for CPA FirmsYourLegal Accounting
 
Series A Fundraising Guide (Investing Individuals Improving Our World) by Accion
Series A Fundraising Guide (Investing Individuals Improving Our World) by AccionSeries A Fundraising Guide (Investing Individuals Improving Our World) by Accion
Series A Fundraising Guide (Investing Individuals Improving Our World) by AccionAlejandro Cremades
 
ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...
ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...
ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...brennadilys816
 
Daftar Rumpun, Pohon, dan Cabang Ilmu (2024).pdf
Daftar Rumpun, Pohon, dan Cabang Ilmu (2024).pdfDaftar Rumpun, Pohon, dan Cabang Ilmu (2024).pdf
Daftar Rumpun, Pohon, dan Cabang Ilmu (2024).pdfAgusHalim9
 
Toyota Kata Coaching for Agile Teams & Transformations
Toyota Kata Coaching for Agile Teams & TransformationsToyota Kata Coaching for Agile Teams & Transformations
Toyota Kata Coaching for Agile Teams & TransformationsStefan Wolpers
 

Recently uploaded (20)

Constitution of Company Article of Association
Constitution of Company Article of AssociationConstitution of Company Article of Association
Constitution of Company Article of Association
 
Elevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO ServicesElevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO Services
 
stock price prediction using machine learning
stock price prediction using machine learningstock price prediction using machine learning
stock price prediction using machine learning
 
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdfProgress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
 
Raising Seed Capital by Steve Schlafman at RRE Ventures
Raising Seed Capital by Steve Schlafman at RRE VenturesRaising Seed Capital by Steve Schlafman at RRE Ventures
Raising Seed Capital by Steve Schlafman at RRE Ventures
 
MEANING AND CHARACTERISTICS OF TAXATION.
MEANING AND CHARACTERISTICS OF TAXATION.MEANING AND CHARACTERISTICS OF TAXATION.
MEANING AND CHARACTERISTICS OF TAXATION.
 
Stages of Startup Funding - An Explainer
Stages of Startup Funding - An ExplainerStages of Startup Funding - An Explainer
Stages of Startup Funding - An Explainer
 
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg PfizerJual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
 
How to refresh to be fit for the future world
How to refresh to be fit for the future worldHow to refresh to be fit for the future world
How to refresh to be fit for the future world
 
Beyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic AccountingBeyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic Accounting
 
Powerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metricsPowerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metrics
 
Navigating Tax Season with Confidence Streamlines CPA Firms
Navigating Tax Season with Confidence Streamlines CPA FirmsNavigating Tax Season with Confidence Streamlines CPA Firms
Navigating Tax Season with Confidence Streamlines CPA Firms
 
WAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdfWAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdf
 
PitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for StartupsPitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for Startups
 
Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...
Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...
Pay after result spell caster (,$+27834335081)@ bring back lost lover same da...
 
Unlocking Growth The Power of Outsourcing for CPA Firms
Unlocking Growth The Power of Outsourcing for CPA FirmsUnlocking Growth The Power of Outsourcing for CPA Firms
Unlocking Growth The Power of Outsourcing for CPA Firms
 
Series A Fundraising Guide (Investing Individuals Improving Our World) by Accion
Series A Fundraising Guide (Investing Individuals Improving Our World) by AccionSeries A Fundraising Guide (Investing Individuals Improving Our World) by Accion
Series A Fundraising Guide (Investing Individuals Improving Our World) by Accion
 
ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...
ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...
ابو ظبي اعلان | - سايتوتك في الامارات حبوب الاجهاض للبيع ف حبوب الإجهاض ... ا...
 
Daftar Rumpun, Pohon, dan Cabang Ilmu (2024).pdf
Daftar Rumpun, Pohon, dan Cabang Ilmu (2024).pdfDaftar Rumpun, Pohon, dan Cabang Ilmu (2024).pdf
Daftar Rumpun, Pohon, dan Cabang Ilmu (2024).pdf
 
Toyota Kata Coaching for Agile Teams & Transformations
Toyota Kata Coaching for Agile Teams & TransformationsToyota Kata Coaching for Agile Teams & Transformations
Toyota Kata Coaching for Agile Teams & Transformations
 

GrabTaxi Strategy

  • 1. 1| GRABTAXI’s Strategy In Southeast Asia Context What’s going on and what’s ahead? Vincent Chan – Dec 2015
  • 2. 2| UBERvsGrabtaxiinSoutheastAsia Started by competing with taxi offering UberBlack limousine Started by partnering with taxi Aggresive + Corporate-ish Friendly + Neighbourhood-ish image Globalization Strategy Localization Strategy Seen as hostile competitor by taxi operators, regulators Work as partner with regulators, taxi operators, community Majority of fleet comprises of private cars currently Larger car fleet with taxis + private cars
  • 3. 3| http://blogs-images.forbes.com/liyanchen/files/2015/09/0908_uber-map2_2000.jpg http://b-i.forbesimg.com/parmyolson/files/2013/11/top-3-messenger-apps-copy.jpg The ride sharing competition may evolve similarly to social messaging app, with no global clear winner but local leader in each region. Acquisition may occur (Eg. Facebook acquired Whatsapp) to reduce competition and increase user base. WhoisLeading?
  • 4. 4| SouthEastAsia Anuniqueregion Singapore • Taxis are in low supply and high demand during peak hours • Car ownership cost is unlikely to go down • Public transport is barely coping with demand • Government is supportive to reduce cars on road and improve taxi/ride sharing availability • Mobile network and infrastructure are mature Malaysia • Taxis have bad reputation among locals and visitors with safety issue and service attitude • Public transport is not well planned • Traffic congestion is a problem • Mobile network and infrastructure are developing As a whole • Each country has their own language and culture, coupled with different regulators. • Western based companies are not able to penetrate South East Asia with a single unified strategy. • Market favours local players
  • 5. 5| Industry’sChallenge Rivalry among existing competitors Threat of new entrants Bargaining Power of Suppliers Threat of Substitutes Bargaining Power of Customers Moderate Previously a low upfront cost game, attracting new players Moderate Taxi drivers are relying on Grabtaxi’s large driver fleet. Competitors do not have big fleet at the moment Moderate Taxi operators may overhaul their taxi booking app and some users still use SMS booking. High Customer has multiple alternatives (Uber, EasyTaxi, Taxi operators) Moderate Current rivalry within South East Asia is moderate with Uber and EasyTaxi Provide more sign up bonus and incentive to keep barrier of entry high Leverage on knowledge of local market and fleet size to reduce the effectiveness of competitors Relentlessly grow fleet size and upgrade taxi job matching speed & accuracy to keep switching cost high. Expand the functionality of apps and product offering to keep switching cost high. Introduce reward system for loyal customer Expand the functionality of apps and product offering SMS booking functionality GrabTaxi’s possible response strategy
  • 6. 6| Positioning,What’sNext? Global Market Local Market DiversificationSpecialization Logistic Company Transportation Company UberX UberTaxi UberEats UberCargo UberRush GrabTaxi GrabCar GrabHitch GrabBikeTaxi Operators Taxi Hailing Platform GrabTaxi’s current strategy is more likely to experiment with new complementary service offerings that leverage current strength in South East Asia Expanding into global market is unlikely at this stage with limited funding to take on competitors in their established turf.
  • 7. 7| What’sahead?ProfitMarginRisk Revenue Cost Revenue Cost Risk of Cost Increase • Additional R&D & talents investment to remain technologically competitive • Potentially higher sign up cost and incentives to acquire and retain drivers to maintain barrier of entry • Potential private fleet insurance requirement • Potential change to classify driver as partial employee • Potential more cost for legal and lobbying fee Pressure on Revenue • Potential price war from competitors who may introduce 100% revenue to be kept by drivers to squeeze out competitors. • Competitors to band together to create non- GrabTaxi network • Macroeconomic conditions First mover advantage for South East Asia Local market favours local player Low cost of entry, Low CAPEX Minimal infrastructure investment Moving Forward
  • 8. 8| The3PillarsofFocus SAFETYSPEED CERTAINTY Superior App and Platform to ensure fastest ride matching Continue to increase size of fleet Adequate investment in IT infrastructure for growth Data Analytics and data privacy safekeeping for users and drivers Never compromise on strict taxi driver screening during growth
  • 9. 9| Whilefocusingongrowth, GrabTaxiisfacedwith Constant pressure to remain ahead of the curve in matching taxi/ride to demand Customer may permanently switch to other app which can work faster, even by seconds. Drivers want the fastest match possible. Constant pressure to improve customer satisfaction, even not within GrabTaxi’s responsibility Any dispute between drivers and passengers will be part of Grabtaxi’s customer experience. Risk of accidents and criminal cases Such events will create negative publicity even though it may not be within control of the company. Possible regulatory change Drivers may be considered partial employees in the future, demanding more compensation. Car insurance price may increase.
  • 10. 10| FeedbackfromTaxiDrivers withmeasaCustomer Grabtaxi App has lesser MIA passengers compared to Comfort App Grabtaxi App has lesser MIA passengers compared to Comfort App I can now rent taxi from taxi companies other than Comfort. Lower rental I can now rent taxi from taxi companies other than Comfort. Lower rental I have to ensure my service attitude is right, as customers may rate me via the app I have to ensure my service attitude is right, as customers may rate me via the app Taxi Company’s APP: Whoever fast fingers get the job. Grabtaxi’s APP: Whoever nearest get the job Taxi Company’s APP: Whoever fast fingers get the job. Grabtaxi’s APP: Whoever nearest get the job With GrabTaxi’s booking, I know where the customer want to go before accepting, so I can plan my route. With GrabTaxi’s booking, I know where the customer want to go before accepting, so I can plan my route.