Want to Develop App Like Grab? Delve into Its Business Model

Heading towards digitization, it seems like imagining a business without having a mobility solution is a nightmare. There is an application for everything from performing a basic task to consulting even beauticians. In fact, people are going gaga over doing tasks online rather than offline because of discounts, convenience, an extensive range of products, and much more.

And the on-demand business model is one of the lucrative parts of this entire digital economy. Indeed, Uber has changed the entire business landscape and people’s preferences towards ordering things. From ordering food to groceries to cabs online, the on-demand business model has been gaining huge attention across the globe. As a result, many entrepreneurs entered the market; one of the best super applications is Grab.

Southeast Asia is the most dynamic economy in the world and the number of Internet users has reached 400 million in 2020. Why? Because people have become a digital nomad and using apps like Grab to get their daily tasks done easily. With tens of millions getting smartphones and coming online every year, the region’s most valuable startup is Grab.

Grab is a Southeast Asian super app offering users ride-sharing, food delivery, payment services, etc. Grab was founded in 2012 and since then has grown to become a regional powerhouse. Therefore, more and more entrepreneurs want to know what business model it follows and what are the sources the brand makes money from? Let’s have a look into its business model, but before that, examine what Grab is and what services it offers.

What is Grab?

Grab is a Southeast Asian startup that offers an extensive range of services such as ride-booking, bike renting, food delivery, and financial services. Although the grab has 187 million users across the globe, it earns money from various sources such as commissions from restaurants, drivers, payment processing fees, referral fees, and more.

Grab’s popularity is not hidden, in fact, well-established business owners want to enter the market and have their own custom app platform like grab as it allows them to enter this lucrative market without spending much. Grab is known as a super app in Asia that meets almost every need of today’s customers. Grab right now offers multiple products, including:

1. GrabRides is a ride-hailing app that allows users to book taxis and other types of vehicles whenever they need.
2. GrabFood is an on-demand food delivery service that connects customers with nearby restaurants.
3. GrabMart is an app that allows users to order groceries online.
4. GrabPay is a digital payment service that enables users to transfer money and make payments.
5. GrabInsure is a company that offers insurance to customers for their vacations and rides.
6. GrabFinance is a service that gives drivers loans and customers “buy now, pay later” options.

These services are why Grab is popular and attracts entrepreneurs worldwide to have their own solutions, as it opens a new set of possibilities for conventional businesses and allows them to grow easily. So these are the services; now it's time to look into its business and revenue model.

Grab Business Model Explained In Detail

Grab is an online aggregator with a simple but technologically sophisticated business strategy. Business owners or retailers can list their services on the app; customers access multiple products, whereas delivery providers or drivers can earn a decent income from working flexibly. It means Grab’s business model creates a win-win situation for all stakeholders involved. Let's see how Grab’s business model is beneficial to everyone.

Key Segments in Grab Ride Sharing Model

Here is the list of core partners that work together for better services.

• Drivers- supply side
• Customers- demand side
• Investors- to run the business smoothly

GrabTaxi functions like every other ride-hailing service in the industry. Their business operations involve:

• Users need to enter pick up and drop locations within the app or website
• The application sends the trip request to nearby drivers
• Here driver has two options, either they can accept or deny the request
• After accepting the request, the driver reaches to customer's location.
• The user gets into the car, and the ride starts
• Upon reaching the destination point, the user pays the amount charged for the trips and rates each other.

Later, the company entered into food and grocery delivery segments and connecting users with nearby restaurants and stores. This is beneficial for them as well; they can boost the customer base and deliver the products without making an investment in logistics.

The Revenue Model Explained in Detail

Grab earns money from drivers, restaurants, and stores, fees associated with processing payments, displaying ads, and referral fees.

Earlier, Grab only dealt with taxi booking services, so it earned revenue from users' charges for their rides. In addition, it charges a commission that varies from location to location and country to country. Then, the giant expanded its operations and set foot into new business verticals such as food delivery, grocery delivery, hotel booking, financial services, etc.

Thus, Grab earns a commission from each transaction on the platform and started offering multiple services under one roof. And this approach emerged as a super app in Asian countries.

From the above discussion, we can say that Grab is Asia’s front-line player in the consumer demand market. The on-demand market is ready to conquer the transitional business industry in the coming times.

Launch Your Grab Like App Now

Grab is surely one of the most popular and successful businesses in the Asian market as more than 66 ride requests it receives per second across the seven countries. Grab has scaled up as a super app by setting foot in almost taxi and hyperlocal verticals after gaining a strong user base in the taxi booking market.

If you are one of the entrepreneurs who want to enter the super app industry, launch an app like Grab that can be customized to your business needs. With all the modern features, you can bring all possible business that can be taken under a single umbrella. Several app development companies can help you develop an app like Grab and make it easy for you to become a market leader in the on-demand business landscape.