GROUP 4

Grab
OUR GROUP:
Phạm Quốc Việt
Phạm Minh Anh
Hà Duyên Minh Quang
Crisis
HIến Thị Hà Thu
 TABLE OF
CONTENTS

1. Problem

2. Situation

3. Solution
 When Covid-19 pandemic hit South
East Asia in general and Vietnam in
particular, Grab, which is a digital
ride-hailing platform, suffered a
sharp drop in its transport business,
as a movement restriction order
was officially announced.

To be more specific, in July 2021, due to

the lockdown in Hanoi, Vietnam, Grab
had to halt the services of GrabFood
and GrabCar, GrabBike, as well as
GrabTaxi, and later on GrabExpress and
GrabMart. This meant that by that time,
it had suspended all of its services in
Hanoi. At the same time, in Ho Chi Minh
City, Grab still operated its business but
had to limit the working hours, from 5
a.m. to 6 p.m., and the driver-partners
were only allowed to deliver essential
goods.
situationStarting as early as
the first case of
Covid-19 recorded in
Thailand on the 13th
of January 2020, the
company experienced
major changes and
worked hard to adapt
to the situation, but it
was still nonetheless
overwhelmed by the
pandemic.
Throughout 2020-the first year of
Covid-19 in Southeast Asia, Grab
went through a sharp decrease of
revenue made from mobility
services, also known as the most
used service provided by the
company until then. So huge was
this decrease that an estimation
made in the same year regarding
the loss of revenue the company
had to face was recorded at $621
million dollars (numbers by Forbes).

The situation is especially serious in Vietnam, one of the most

valued markets for the operation of Grab. Since the pandemic,
the number of rides needed by Vietnamese customers fell
dramatically, nearly 5 times less than it was in the previous
year, and already so severely in the first half of the year

Impact of COVID-19 on the number of rides of Grab in Vietnam in the first

half of 2019 versus in the first half of 2020
(https://www.statista.com/statistics/1242476/vietnam-number-of-grab-rides-
before-and-during-covid-19/)
 The situation continued to worsen in the
following year of 2021, when not only did Grab
had to overcome the loss of service usage in
its most expensive operating area, but it also
had to deal with a lot of upcoming exceptional
charges according to the laws of Vietnam and
limitation in operating time-area.

In fact, Grab Holdings stated that only to the end

of the 3rd quarter of 2021, the net loss of the
company widened to $988 million dollars, more
than the loss recorded over the entire previous
year and mainly due to the disadvantages that
occurred in Vietnam, especially in ride-hailing.
The loss included more than $748 million dollars
for non-cash items like interest charges, stock-
based compensation, and fair value changes on
investment (Info by Forbes)

S i t u a t i o n

Crisis
Solution
Focus on deliveries
Since citizens could not go outside
because of the restriction, getting
groceries and essential needs have
never been more challenging.
Thereby, deliveries became the
priority “If people could not come to
the products, then products could
now come to people – all within the
same, single app environment”,
Anthony Tan – general manager of
Grab.

The company launched GrabMart in

Hanoi since 03/04/2020. This app allows
customers to choose from a huge range
Release new features
of products in supermarkets which
include canned, processed food, fresh
fruits, bottled drinks and the groceries
will be delivered mostly within 30
minutes. The app also offered more
employment opportunities for drivers
who now had to work even more than
before as most citizens are forced to stay
at home. This helped to adjust and save
the falling income of the Grab bikers.

Supporting merchants
By simplifying and speeding up the process of
bringing local merchants on Grab, hundreds of
small businesses started to enroll in the digital
market. To follow the social distancing rules of the
governments, the company also introduced a
digital payment system – GrabPay which allows
customers to pay via the app without unnecessary
physical interaction with bikers.