JAKARTA (TheInsiderStories) – Singapore-based ride-hailing firm Grab has confirmed its dominance as the most widely used online transportation applicator in the Asia Pacific which covers 70 percent of all ride-hailing trips in the world. Grab maintains a ride-hailing market share of 11.4 percent, with the largest users in Indonesia and Vietnam by 64 percent and 74 percent, respectively, recent ABI Research data showed.
The London-based global tech market advisory firm also said that Indonesia’ mobile on-demand platform and digital payment, Go-Jek, Grab’s closest competitor, owns 35.3 percent of the Indonesian market while Go-Viet – its subsidiary – has 10.3 percent of the Vietnamese market.
Grab and Go-Jek were the top-two startup brands in Southeast Asia, valued at US$14 billion and $10 billion, respectively. They compete in a host of areas including financial services, e-commerce, ride-hailing, and food delivery.
ABI Research also found that applicators who competed to provide services to the people of countries in the Asia Pacific did not stop their services in the transportation sector. But developed into a marketplace that provides a variety of needs through ‘super-apps’.
“The market leadership is the fruit of Grab’s success in becoming a super app that can capture the huge volume of public demand besides transportation, namely by providing goods and food delivery services, as well as financial services through GrabExpress, GrabFood, GrabFresh, and GrabFinancial services,” said James Hodgson, Smart Mobility Principal Analyst at ABI Research in a written statement.
However, ABI Research is concerned about the potential slowdown in the use of online transportation in the Asia Pacific region due to various factors. Hodgson predicted, after recording 22 billion trips in 2018, this year is expected to close with a travel figure of just under 22 billion.
Two factors which suppress the rate of online transportation use, according to him, are the result of tariff increases caused by demands for increased driver incentives. As well as tariff subsidy policies to find new customers and expand market share.
Therefore, the development of services outside transportation is a necessity. Hodgson gave an example, in the United States, when the Uber transportation sector only grew 9 percent in the first quarter of 2019, UberEats grew impressive to reach 89 percent in the same period.
ABI Research assesses that the management of Grab does not miss the momentum to diversify its services to become a “supermarket” smart mobility service to meet the needs of its customers. The startup has expanded its markets in Malaysia, Singapore, Myanmar, Thailand, and Cambodia.
On market expansion, Grab recently reported have a preliminary talk with a local firm, PT Elang Mahkota Teknologi (IDX: EMTK) also known EMTEK to acquire its digital payment arm Dompet Digital Indonesia (DANA), Reuters reported. It said a deal would see Grab buy a majority interest in DANA.
Japan’ Softbank Group-backed firm plans to merge OVO, Indonesian digital payments with Chinese’ Ant Financial (Alipay)-backed local peer to build heft and power ahead of arch-rival Go-Jek. OVO and GOPAY have been vying for the top spot in payments since 2018, with DANA not far behind.
The plan also points to intensifying competition in Indonesia’ digital payments industry that is seeking to piggyback on the country’ booming e-commerce market and its 260 million people.
Recently, Grab Holdings get another $2 billion funds and will invest in Indonesia as part of the company expansion plan in the country. Last March, one of the leading apps in Southeast Asian received funding from Softbank Vision Fund and other investors worth $1.46 billion.
With this Series-H funding round, so far Grab has received more than$4.5 billion. Other investors included in the Series-H funding round are Toyota Motor Corp., Oppenheimer Funds, Hyundai Motor Group, Booking Holdings, Microsoft Corporation, Ping An Capital, and Yamaha Motor Corp.
Written by Lexy Nantu, Email: email@example.com