Chapter 4

LIMPIN- PESTEL Analysis (Opportunities and Threats)

Political

https://newsinfo.inquirer.net/1210597/follow-government-rules-grab-asks-prospective-
tnc

Opp: to provide safe and convenient and effective mobility solutions to all Filipino
commuters and how to protect the lives of every Filipino.

Threat: policies and regulations set by the government, saying this could have a
“negative cumulative effect” on the whole sector and also threatens Grab that it can
cause the anxiety of every Filipino.

Economic

https://asia.nikkei.com/Business/Business-Spotlight/What-Singapore-s-Grab-brings-to-
global-investors-with-U.S.-listing

Opp: expanding global markets in U.S

Threat: cultural barriers

Social

https://www.grab.com/sg/blog/public-policy/what-grab-has-learned-from-the-frontlines-
of-the-pandemic/

According to the Grab’s President Ming Maa, They learned from being at the frontlines
of the pandemic, while they were working with governments in the region. This article
was published by the Asian Development Bank’s Southeast Asia Development
Solutions (SEADS) platform. She said that At Grab, they learned from this global criss
when Grab Holdings decided to partner with the Indonesian government to drive-
through vaccine centers across the country in 2021. For over a year now, we have been
working with governments across Southeast Asia to support their efforts against the
coronavirus disease (COVID-19) pandemic. Grab also saw the opportunity of helping
others and it made them understand the unique local needs, and combine them with our
expertise in technology, operations, and online marketplaces. As a result, Grab
Holdings are not just helping the people and cooperating with the government but they
see the opportunities by also gaining valuable experience and lessons through their
partnerships. From Grab hawker sellers and tricycle drivers, they also learned to
understand what is really the unique needs and use technology as a tool in creating
bespoke models. From the people, They saw how preparation and awareness is very
crucial in building trust by using the different digital tools in times of change. Grab
Holdings President Ming Maa of Malaysia revealed that Grab Holdings Inc. learned on
how to use both technologies with local creativity. This is also a way for Grab to adapt to
the new normal and also to make a good social impact to their customers.

Opp: strengthening the social impact when it come of prioritizing and helping the
customers
Threat:

Technological

https://www.bworldonline.com/grabs-ride-hailing-service-disrupted-across-southeast-
asia/

Opp: Grab can also do some improvements to avoid and prevent technical difficulties.
Threat: the inconvenience of Grab Holdings Inc.’s ride-hailing service for the technical
difficulties in markets in some countries like Singapore, Malaysia and the Philippines
may cause low customer satisfaction.

Environmental

https://www.grab.com/my/press/social-impact-safety/grabfood-champions-
environmental-sustainability/

Grab Malaysia’s fastest growing food delivery service, started to show its efforts
towards better environmental sustainability by introducing the ‘no-cutlery’ toggle for all
GrabFood orders. This marks GrabFood’s first step towards reducing single-use plastic
cutlery, and call outs on consumers to opt for no-cutlery when ordering food. Grab’s
effort is part of GrabFood’s long-term sustainability plan that also sees an opportunity by
GrabFood also working with its ecosystem of restaurant-partners, delivery-partners and
consumers in order to reduce the impact on the environment by recommending more
environmentally-friendly and sustainable business solutions. According to a study,
Malaysia is ranked 8th among the top ten countries with mismanaged plastic waste in
the world and it is estimated that Malaysia produced 0.94 million tonnes of mismanaged
plastic waste, of which 0.37 million tonnes may have been washed into the oceans. In
fact, Malaysia is one of the countries with the lowest recycling rate at only 17.5%,
compared to our neighbor, Singapore at 59%.

Opp: promoting ‘no-cutlery’ toggle

Threat:

Legal

One of the threats that many legal issues of Grab happened this year 2022, In fact Grab
received many complaints from their consumers. One of these is Critically hurt
passenger. Grab has incurred fresh ire after a passenger, Marko de Guzman, 20,
suffered from serious injuries. De Guzman is in critical condition after the accident
incurred in Grab ride that also caused him to sustain severe traumatic brain injury. In
addition, this year, Grab also received a P10-million penalty as imposed by the Land
Transportation Franchising and Regulatory Board (LTFRB) for the reason of
overcharging its customers. Because of this threat Grab Holdings Inc. may lose their
loyal customers and build a bad reputation.

Opp - follow the rules and regulations enforced by the government/ imposing customers
rights.
Threat - critically hurt the passengers/ penalty for overcharging customers

CUSTODIO- PESTEL Analysis (Opportunities and Threats)

Political

https://newsinfo.inquirer.net/1080773/grab-philippines-prohibits-political-ads-in-service-
vehicles

- According to Inquire. Net, Grab Public Affairs Head Leo Gonzales said that “Grab is a
non-partisan company and does not in any way support this form of political promotion”
in February 2019. Opportunities - prohibiting any form of political advertisement

Economic

https://www.cnbc.com/2021/04/14/grab-spac-listing-analysts-discuss-growth-and-
profitability.html
- According to the CNBC news channel, Grab as a whole is still not profitable. It lost
$800 million in 2020 on an EBITDA basis and projected a $600 million loss for this year.
The threat is that the company is not profitable as a whole.

Social

https://www.techinasia.com/grab-launches-social-impact-program-upskill-
southeast-asians

- According to Techinasia in September 2019, Grab announced a social impact

program aimed at upskilling Southeast Asians and giving them more
opportunities in the digital economy. With the Grab for Good program, the
company looks to help around 5 million micro-entrepreneurs and small
businesses digitize their workflows and processes. It also seeks to bring digital
inclusion and digital literacy to 3 million Southeast Asians through partnerships
with governments, private companies, and nonprofit organizations. Grab also
aims to train about 20,000 students through tech initiatives in collaboration with
educational institutions, nonprofits, and leading tech companies. Opportunities
are increasing job opportunities which reduce the unemployment rate.

Technological

https://www.grab.com/sg/press/social-impact-safety/grab-sets-2025-goals-to-use-
tech-for-good-in-southeast-asia/

- According to the Grab holding statement in September 2019 about Grab sets
2025 goals to use tech for good in Southeast Asia. They see the Opportunities
to improve their livelihoods. By leveraging its technology platform, partnerships
and improving digital inclusion and digital literacy to ensure that everyone in
Southeast Asia, regardless of background or ability, can benefit from the rise of
the digital economy.
- Threat is to have technical Difficulties when connecting to other markets.

Environmental

https://www.grab.com/sg/press/others/grab-releases-first-esg-report-announces-
initiatives-to-reduce-carbon-footprint/

- According to Grab's first ESG Report in June 2021, Grab announced the new
initiatives that reinforce its commitment to reduce carbon emissions and its
environmental footprint. Grab users will soon be able to reduce their carbon
 footprint when traveling with Grab through an innovative carbon offset feature
integrated within the app. Grab and Hyundai Motor Group will also launch new
Electric Vehicle (EV) pilot programs to make EV ownership more affordable and
accessible, while jointly developing a roadmap to accelerate EV adoption in
Southeast Asia. Opportunities are reducing the use or carbon footprint.

Legal

https://newsinfo.inquirer.net/1008947/ltfrb-orders-grab-to-pay-p10m-for-overcharging-
customers?
_gl=1*h60bql*_ga*ZWJNTjZVZG1kMmlOSERoN0ZSWk1NdUtQanNGc3hRZjN4NGYzODNM
TVJXZkcybW1EQWtCLTBSNXU2bWtBRWFOcw..

- According to the Land Transportation Franchising and Regulatory Board

(LTFRB) has ordered Grab Philippines to pay a penalty of P10 million for
overcharging its customers in july 2018 because according to the document from
the LTFRB, Grab should also reimburse its passengers for the P2-per-minute
travel charge through rebates.- threat