grab analysis

While the exact wording may vary, the essence of Grab's mission typically encompasses the following aspects: - Enhancing Accessibility: Grab aims to make essential services, such as tran

FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL EDUCATION

-*** -MIDTERM REPORT TOPIC: GRAB ANALYSIS

Hanoi, March 2024

Table of Contents

I Introduction to the firm 2

1 Mission 2

2 Vision 3

3 Core Values 3

4 History Of Development 4

5 Market / Customers / Products / Service 6

6 Financial Performance ( 3 years ) 7

II External Environment Analysis 8

1 Macro 8

1.1 Economy 8

1.2 Social 8

1.3 Technology 9

1.4 Politic 9

1.5 Environment 9

2 5 Forces +1 10

2.1 Threats of new entrant 10

2.2 Bargaining power of suppliers 10

2.3 Bargaining power of buyers 11

2.4 Threat of substitutes 11

2.5 Competitive rivalry 11

3 Strategic Group 12

4 Industry Life Side 13

III External Strategic Issues Facing The Firm 14

1 Opportunities - Threats 14

1.1 Opportunities 14

1.2 Threat 15

2 Special Issues Facing 16

IV Conclusion 17

V Reference 17

1

I Introduction to the firm

1 Mission

Grab's mission is centered around leveraging technology to solve everyday challenges and improve the lives of people across Southeast Asia While the exact wording may vary, the essence of Grab's mission typically encompasses the following aspects:

- Enhancing Accessibility: Grab aims to make essential services, such as transportation, food delivery, and digital payments, more accessible to everyone in Southeast Asia By leveraging technology, Grab seeks to bridge gaps in accessibility and provide convenient solutions to meet the diverse needs of its users

- Empowering Communities: Grab is committed to empowering communities by creating economic opportunities for individuals and businesses Through its platform, Grab enables drivers, delivery partners, and merchants to earn a livelihood and grow their businesses, thereby contributing to economic growth and prosperity in the region

- Ensuring Safety and Reliability: Safety and reliability are paramount in Grab's mission The company prioritizes the safety and security of its users by implementing stringent safety measures, background checks, and driver/partner training programs By providing a reliable and trustworthy platform, Grab strives to instill confidence and peace of mind among its users

- Driving Innovation: Innovation is at the core of Grab's mission The company continuously explores new technologies and solutions to address evolving customer needs and market demands Through innovation, Grab aims to stay ahead of the curve, deliver superior services, and create value for its users and stakeholders

- Making a Positive Impact: Grab is dedicated to making a positive impact

on society and the environment The company actively engages in social responsibility initiatives, such as promoting sustainability, supporting local communities, and fostering diversity and inclusion By aligning its actions with broader social and environmental goals, Grab aims to contribute to a more equitable and sustainable future

Overall, Grab's mission revolves around leveraging technology and innovation to create positive change and improve the quality of life for people

2

in Southeast Asia, while also fostering economic growth and social progress in the region

2 Vision

Grab envisions a future where everyone can access essential services conveniently, safely, and seamlessly through technology platforms The company focuses on building a comprehensive connected ecosystem, delivering value not only to customers but also to partners and communities

The vision of Grab includes the following goals:

- Leadership in Technology: Grab harnesses technology to provide advanced solutions, from transportation services to digital payment solutions, aiming to improve people's daily lives

- Convenience and Safety: Grab is committed to providing a user-friendly, safe, and reliable experience for customers The company continually improves processes, technology, and collaborates with governments and partners to enhance security and safety

- Creating Value for the Community: Grab focuses not only on providing services but also on creating meaningful social solutions, including creating job opportunities, supporting partners and freelancers, as well as engaging in social and environmental activities

- Expansion and Growth: Grab continuously expands and develops both in scale and service scope The company not only targets new markets but also seeks opportunities for collaboration and investment in new areas to diversify its ecosystem

In summary, Grab aims to become an indispensable part of people's daily lives in Southeast Asia by providing diverse and convenient services, while also bringing value to the community and society it serves

3 Core Values.

Grab's core values reflect its guiding principles and beliefs as an organization While specific core values may vary slightly depending on the source, here are some commonly cited core values associated with Grab:

- Customer Obsession: Putting customers at the forefront of every decision and action This involves understanding and anticipating customer needs, and striving to exceed their expectations in every interaction

3

- Integrity: Upholding the highest standards of honesty, ethics, and transparency in all dealings This includes being accountable for actions, maintaining confidentiality, and building trust with stakeholders

- Agility: Embracing change and adaptability in a dynamic environment Being agile involves being open to new ideas, responding quickly to opportunities and challenges, and continuously learning and improving

- Collaboration: Fostering a culture of teamwork and partnership Collaboration involves working together across teams and functions, sharing knowledge and resources, and supporting each other to achieve common goals

- Innovation: Encouraging creativity and forward-thinking to drive progress Innovation involves challenging the status quo, experimenting with new ideas and technologies, and striving for continuous improvement and disruption

- Social Responsibility: Recognizing the impact of business decisions on society and the environment Social responsibility involves actively contributing to the well-being of communities, promoting diversity and inclusion, and adopting sustainable practices

- Ownership: Taking ownership and accountability for outcomes Ownership involves taking initiative, being proactive in solving problems, and taking pride in one's work to deliver results that drive the company forward

These core values guide Grab's actions, decisions, and interactions as it strives to fulfill its mission and vision while making a positive impact on the world around it

4 History Of Development

Grab is a prominent technology company headquartered in Singapore, offering a range of services including ride-hailing, food delivery, package delivery, and digital payment solutions primarily in Southeast Asia Here's a brief history of Grab's development:

- Founding (2012): Grab was founded in 2012 by Anthony Tan and Tan Hooi Ling Originally launched as MyTeksi in Malaysia, the company started as a taxi-booking app, allowing users to book taxis conveniently through their smartphones

4

- Expansion and Rebranding (2013-2016): After initial success in Malaysia, Grab expanded its services to other Southeast Asian countries, including Singapore, Indonesia, the Philippines, Thailand, and Vietnam The company rebranded from MyTeksi to GrabTaxi to reflect its broader scope of services beyond just taxis

- Diversification (2016-2018): In 2016, Grab rebranded once again, dropping "Taxi" from its name to signify its expansion into various transportation and delivery services The company introduced GrabCar, a ride-hailing service using private vehicles, to compete with other players like Uber in the region Grab also launched GrabFood, GrabExpress (package delivery), and GrabPay (digital payment)

- Strategic Partnerships and Acquisitions (2017-2019): Grab entered into strategic partnerships with various companies to strengthen its position in the market Notably, in 2018, Grab acquired Uber's Southeast Asian operations, marking a significant milestone in its expansion and consolidation of the ride-hailing market in the region This acquisition allowed Grab to focus on its core markets without direct competition from Uber

- Further Expansion and Diversification (2019-present): With a solid foothold in the ride-hailing and food delivery sectors, Grab continued to expand its services and geographic reach The company ventured into new markets and introduced additional services such as financial services (Grab Financial Group), grocery delivery (GrabMart), and healthcare services (GrabHealth) Grab also invested in technology and innovation, exploring initiatives such as electric vehicles and autonomous driving

- IPO Plans and Regulatory Challenges: In 2021, Grab announced plans to

go public through a merger with a special purpose acquisition company (SPAC), Altimeter Growth Corp The merger was valued at billions of dollars, making it one of the largest SPAC deals at the time However, like many tech companies, Grab faced regulatory challenges and scrutiny

in some markets, particularly regarding competition and compliance with local regulations

Overall, Grab has evolved from a taxi-booking app into a multifaceted technology company offering a wide range of services to millions of users across Southeast Asia, reshaping the region's transportation, delivery, and digital payment landscape

5

5 Market / Customers / Products / Service

Market: Grab (formerly known as GrabTaxi) is a technology company headquartered in Singapore that provides car transportation and travel services

in Singapore and other Southeast Asian countries such as Malaysia, Indonesia, Philippines, Vietnam, Thailand, Myanmar and Cambodia

It can be said that Grab appears as a new breeze in transportation in Southeast Asian countries Customers can travel faster than taxis due to the application of technology in calling a ride, but it is extremely secure compared

to traditional motorbike taxis

Customers: Commuters, students, tourists, families and the elderly

Products: Grab always develops its products in parallel with customer needs, thereby adapting and changing in a more positive direction Grab's products and services are quite diverse, starting with GrabTaxi, GrabCar, GrabBike, GrabExpress and most recently GrabShare Grab's advantages include the application being easy to install, transparent, and quick Promotions and welcoming new customers are always emphasized Furthermore, Grab always pays attention to the many benefits of customers when they choose to use services such as Grab Pay, Grab Awa or Grab Chat

Service: Grab provides a diverse range of services such as GrabTaxi, GrabBike, GrabCar, GrabExpress and recently GrabShare Grab products have achieved ISO 9001:2015 quality certification The Grab brand constantly develops products to meet customers' needs and desires In particular, GrabExpress delivery service is a unique product of Grab that Uber does not have Grab always listens to customers' opinions and creates products adapted to local situations

- GrabBike: Motorbike booking service, helping customers move quickly and safely Currently, GrabBike also has GrabBike Premium service -booking high-end motorbikes with many high-end models

- GrabShare: GrabShare car sharing service allows customers to share a car with other passengers going in the same direction, saving costs up to 30% compared to regular GrabCar service

- GrabCar: Private car booking service, helping customers travel conveniently and comfortably with pre-determined fares Customers can choose from a 4-seat GrabCar or a 7-seat GrabCar depending on their travel needs

6

- GrabTaxi: Taxi booking service (4 or 7 seats depending on need), GrabTaxi fare is calculated according to the meter on the car

- GrabExpress: Grab's motorbike delivery service GrabExpress is present in Hanoi and Ho Chi Minh City, helping customers deliver and receive goods easily and conveniently

6 Financial Performance ( 3 years )

The net revenue of Grab Vietnam in the past 3 years has consistently been over 3,300 billion VND per year The gross profit margin of Grab Vietnam is impressive, ranging from 39.8% to 64.4% However, except for 2020 when Grab Vietnam made a profit with a post-tax profit of 243.4 billion VND, the company has been incurring losses in the other years, resulting in deep negative shareholder equity

Grab Vietnam allocates approximately 50% - 60% of its revenue to sales expenses (mostly advertising and promotions), which is the main reason for the continuous losses during this period (2018-2022) However, in 2021, when the Gross Merchandise Volume (GMV) in Vietnam dropped to nearly zero for several consecutive months, Grab Vietnam returned to a streak of losses, specifically a post-tax loss of 300.5 billion VND However, this loss is far lower than in 2019 when the figure reached 1,697 billion VND

With a nominal charter capital of only 20 billion VND, Grab Vietnam's accumulated losses as of December 31, 2021, have exceeded 4,000 billion VND Looking at the business results, it can be seen that the total sales and business management expenses are very high compared to the gross profit Not only Grab Vietnam, but Grab Holdings (the parent company of Grab Vietnam) is also sinking into losses According to the financial report for 2021, Grab Holdings spent 1.8 billion USD on incentive and promotion programs, including 1.1 billion USD for users and 0.7 billion USD for partners In 2019, spending on incentives reached 2.4 billion USD

The revenue in 2021 of Grab Holdings reached 675 million USD, increasing from 469 million USD in 2020 The Gross Merchandise Value (GMV) exceeded 16 billion USD, a 29% increase compared to the previous year The accumulated loss by the end of last year was 14.4 billion USD

7

In the fourth quarter of 2022, revenue increased by 310%, reaching 502 million USD compared to 122 million USD in the same period last year Including the entire year of 2022, the company recorded revenue of 1.43 billion USD, a 112% increase compared to the 675 million USD in 2021, and higher than the previously forecasted range of about 1.32 - 1.35 billion USD

Revenue grew 30% year-over-year (“YoY”) to $653 million in the fourth quarter of 2023, attributable to revenue growth across all our segments and further reductions in incentives

II External Environment Analysis

1 Macro

1.1 Economy

Grab continues to facilitate economic development and community empowerment, bringing more than 680,000 small-scale store partners to the platform and upskilling more than 780,000 driver-partners through GrabAcademy With the platform, Grab's partners made 8.9 billion USD in revenue in 2021—a 24% increase over 2020 Additionally, Grab donated USD

20 million from the Grab For Good fund to provide partners complimentary COVID-19 vaccinations

1.2 Social

Vietnamese people rarely use public transportation, but still prefer to use personal transportation, especially motorbikes Vietnam has more than 45 million motorcycles and motorbikes registered in 2016, according to data Currently, motorbikes are used daily by 85% of the Vietnamese population for both cleaning and transportation As per the modification made to ascertain the proportion of different vehicle kinds in a vehicle line, motorcyclists will make

up to 85.8% of the vehicles while cars will make up 11.3% → Possibility: plenty of motorcycle riders as well as psychology Having a passion for vehicles allows Grab to build products like Grab Bike and, more recently, Grab Car

Grab continues to facilitate economic development and community

empowerment, bringing more than 680,000 small-scale store partners to the platform and upskilling more than 780,000 driver-partners through GrabAcademy In 2021, Grab's partners achieved an income of 8.9 billion USD through the platform, an increase of 24% compared to 2020 Grab also

8

contributed 20 million USD from the Grab For Good fund to provide free COVID-19 vaccines to partners

1.3 Technology

Technology is a "weapon" that Grab uses to stay competitive To better understand their customers' demands, Grab analyzes a lot of consumer data Their data, for instance, may be used to determine the most popular pick-up and drop-off areas to assign drivers to, as well as the frequency of journeys Identifying technology as a competitive “weapon”, Grab has opened many R&D centers in Singapore, India, Vietnam to attract technological talents, constantly innovate and develop technology

1.4 Politic

In the Vietnamese economy, Grab Company Limited is subject to both obligations and rights Grab Co., Ltd is required by these rights and duties to do business in compliance with Vietnamese law and the market The management

of Grab Co., Ltd.'s transportation connectivity technology services business model will be implemented stricter tax laws To prevent tax loss and harm to the state budget, the Ministry of Finance has recommended that taxes be collected for this company's business model more thoroughly Additionally, firms that employ this model, like Grab, are required to adhere to stringent implementation due to restrictions on user information security, enhancing safety, and network security to prevent the leakage of personal information The current business model of applying transportation connection technology services is increasing the conflict between new business models and old business models; change normal operating methods and mechanisms Therefore, state policies will both support development and regulate and manage more strictly.2 With more than 680,000 small-scale store partners on the platform and more than 780,000 driver partners receiving upskilling through GrabAcademy, Grab Economy continues to promote community uplift and economic growth 2021 saw a 24% growth in revenue for Grab's partners on the platform, totaling 8.9 billion USD 20 million USD were also donated by Grab from the Grab For Good fund to help partners receive free COVID-19 vaccinations

1.5 Environment

Increasing environmental awareness and concerns about climate change impact consumer preferences for eco-friendly transportation options

9