Complete SWOT Analysis of Grab – A Southeast Asian Technology Company

Product & Service by Grab

Grab has been automotive & transportation technology, mobile app and deals with:

• Technology
• Transportation
• Food delivery
• Grocery delivery
• Parcel delivery
• E-commerce
• Online payment
• Financial services
• Mobile app

Competitors of Grab

Grab competes on a global level the 5 competitors of Grab are:

• Uber
• Lyft
• Gett
• iCarsclub
• Gojek

Now that we understand the company’s key business, let’s look after the SWOT Analysis of Grab.

SWOT Analysis of Grab

SWOT Analysis of Grab can show how a well-established company uses its opportunities to ensure its growth. It can show how the company takes advantage of its strengths to use the opportunities while working on its weaknesses. SWOT Analysis of Grab will also reveal its expansion plans.

To better understand the SWOT analysis of Grab, refer to the infographic below:

Now first let’s begin with the strengths of the company from the SWOT analysis of Grab.

Strengths of Grab

• Biggest in its Nation: Grab is one of the biggest technology startups in the Southeast region and it currently operates in the Southeast Asian countries of Singapore, Malaysia, Cambodia, Indonesia, Myanmar, Philippines, Thailand and Vietnam.
• Top Quality Selection: It provides excellent service. Only approved drivers and vehicles will be able to work for Grab. Grab’s transportation services are safe and of high quality, because the drivers who work at Grab go through rigorous verification procedures.
• Ease of Payment: Grab accepts cash, cards, and top-ups as payment methods. Customers can also pay the driver directly using Grab’s payment method through Kudo and GrabPay.
• Range of Services: The fleet consists of a wide range of different types of vehicles. GrabCars, GrabShare, GrabTaxi, and GrabCar+ are all available. Grab provides transportation as one of its services, but it also provides food delivery, mobile/data loading, and cargo services.
• Strong Acquisitions: Grab merged with Uber’s Southeast Asian operations in March 2018, followed by Grab acquiring Uber’s assets and operations, including UberEats, which led to Grab’s expansion of food delivery services.
• Recent Developments: Recently in 2021, Grab expanded its operations by opening a new headquarters in one-north of Singapore. Grab is always ahead of its competitors because it focuses on developing its business frequently.
• Fundings: Grab gets huge funding from the nation’s top automobile companies and other ride-hailing firms such as Japan’s Softbank Group and MUFG, Booking Holdings, Toyota and Microsoft. Such funding in turn helps Grab to explore new ventures.
• Number of Users: Grab holds more than 214 million app downloads and 3.5 million daily rides. As of December 2020, Grab had 5 million registered driver-partners. 
• Diverse products: Transport is just one of Grab’s services, the company also offers food delivery, mobile loading, and cargo services.
  

Weaknesses of Grab

• Labour-Intensive Industry: Grab is dependent on people and is, therefore, a labour-intensive business. This dependence on people makes it exhausting for the company to manage regular training of delivery partners and performance-based appraisals. 
• Less Visibility in the Global Market: Grab is lesser-known as compared to the global players. Grab needs to work on its brand visibility to compete against other delivery giants in the international markets.
• Huge Operational Costs: Operating a business in the delivery industry requires big amounts of operational costs from time to time to keep the business process going.
• Changes in Technology: The system does experience glitches from time to time which requires frequent changes in technology as new and better technology comes up now and then. It gets both difficult to train people and an expensive affair to bring in changes in the technology used frequently.
• Customers Privacy Issues: There are privacy concerns because Grab tracks where customers get their taxis and where they go with them.
• Low Incentives: The unprofessional and unseemly behaviour of the drivers resulted in negative publicity. The reason behind this is the incentives offered by Grab to drivers are minimal due to which the chances of drivers staying with Grab are very low.
• Drivers Reliance on Tips: Drivers rely heavily on tips. The company has no control over its drivers’ actions. Customers may feel uneasy if drivers constantly ask for tips or display a rude attitude.

Opportunities for Grab

• Explore New Markets: Grab can reach out to growing markets in suburban areas where taxi services are unavailable.
• Electric Vehicles: Grab should start enrolling electric and rechargeable vehicles because the vehicles result in pollution reduction. This move by Grab can help Grab to get support from the government and open the doors for additional subsidies.
• Growing Safety Concerns: Grab should promote the safety benefits of its services because customers frequently switch to Grab due to concerns about the legality and safety of motorcycle hailing.
• Current Nation’s Scenarios: Poor public transportation, a lack of parking spaces for public vehicles, and rising consumer incomes may boost Grab’s profits.
• Nation’s Development: As a result of the development of New City Clark, Grab may be able to operate in a key strategic location, as Manila remains congested with work-related crowds.
• Acquisition Synergies: Acquisitions are a good way of expanding an ongoing business with the help of another one by utilizing its resources.

Threats to Grab

• Constant Forcement: Customers who are constantly asked for tips may become repulsed and stop using the service.
• Increase in Fuel Rates: Increasing fuel rates globally lead to a rise in operational costs.
• Country-specific Regulations: Each country has a different set of rules and regulations regarding the transportation of goods. Some goods have very strict restrictions in some countries making it difficult to transport them.
• Rising Incidents: Females in the nation frequently get assaulted by GrabCar drivers and such incidents are increasing day on day. Incidents like these question the safety which is guaranteed by Grab.
• Increase in Competition: Apps for such services are emerging every day, thus companies in this industry have to keep up with the latest trends and provide better customer services.
  

This ends our complete SWOT analysis of Grab. Let us conclude our learning below.