Introducing affordable options and utilizing AI to better serve the ecosystem
Grab Thailand unveiled its 2024 business strategy, focusing on four key areas: preserving its core target of active users, offering more affordable options, leveraging AI and technology to better serve the ecosystem, and ramping up its ads and new services. Beyond business performance, the company remains committed to fostering positive societal and environmental impacts, with a focus on the promotion of electric vehicle adoption, single-use plastic reduction, and generating economic opportunities for Thais, particularly through its women empowerment programme.
Worachat Luxkanalode, Country Head of Grab Thailand, stated, "2023 was another good year for Grab Thailand
as we saw continued success with solid business performance and the successful implementation of various projects and initiatives aimed at fostering sustainable business growth. Our on-demand transportation services experienced a significant surge post-COVID, particularly in the foreign tourist segment, which saw remarkable growth of 139% in the number of rides1. Despite stagnant growth in Thailand's food delivery industry last year, GrabFood maintained its strong position and continued to serve today's consumer needs with innovations such as Dine-in, Pick-Up, and Group Order, all of which received highly positive responses. Furthermore, our financial services saw significant progress highlighted by the integration of Alipay and Kakao Pay, offering enhanced payment options for international users, and expanding our user base in upcountry provinces through a strategic partnership with KrungThai NEXT."
"We are optimistic about Thailand's USD 36-billion digital economy2, especially in the transportation and food sectors. According to the e-Conomy SEA 2023 report, these sectors are poised for substantial growth, anticipated to reach up to 15%3 by 2025. This year, our primary focus remains on fostering sustainable business expansion, with a spotlight on four key areas, known as the '4A,' aimed at earning consumers' trust and loyalty. At the same time, we reaffirm our commitment to supporting people within our ecosystem and contributing to the preservation of the planet for a better future for everyone," added Worachat.
In 2024, Grab Thailand will primarily focus on four key areas, including:
- Active Users: Grab remains committed to serving its core user base, including tourists, GrabUnlimited subscribers, and high-value customers. Through strategic collaborations with the Tourism Authority of Thailand (TAT), Airports of Thailand Public Company Limited (AOT), and other partners, Grab aims to promote Thai tourism and 'Soft Power' while enhancing the overall travel experience by prioritizing safety and comfort. The focus on GrabUnlimited subscribers involves providing experiential benefits beyond mere discounts and introducing an annual subscription option. Concurrently, Grab continues to cater to high-quality users by emphasizing value propositions over discounts and doubling down on flagship brands namely #GrabThumbsUp and 'Only at Grab'.
- Affordability: In response to concerns about rising living costs among Thai households, Grab has rolled out a range of affordable options to address the needs of price-conscious users in both mobility and delivery services. This includes the introduction of GrabCar SAVER, which offers reduced fares of up to 15% with compact vehicles, currently piloting in 20 provinces, and GrabBike SAVER designed for short-distance rides within a 0-4 km radius, starting at just 26 baht. Furthermore, in the realm of food delivery, Grab has launched its new sub-brand 'Hot Deals,' featuring selected menu items and exclusive food promotions at a more accessible price point, complementing the existing SAVER delivery option.
- AI Technology: As a leading global technology company, Grab has fostered a robust capability in Artificial Intelligence (AI) and Machine Learning (ML), developing over 1,000 models in the past year. Grab Thailand will strategically utilize these in-house developed technologies to optimize business operations for its driver- and merchant-partners, ultimately enhancing user satisfaction. This includes the application of AI and ML methodologies to refine credit scoring mechanisms for its lending program, and GrabGPT, which serves to enhance content creation and artistic endeavors.
- Ads & New Services: GrabAds is poised to expand its operations anticipated to increase revenue contributions. In addition to acquiring new corporate clients across key industries such as travel & tourism, health & beauty, and FMCG, this year Grab will prioritize the promotion of its 'self-serve ads' solution among merchant-partners, especially MSME segments. This yields a remarkable six times average Return On Ad Spend (ROAS)4 for merchant-partners and empowers them to independently manage their own ad campaigns and promotions, maximizing their reach and potential. Moreover, Grab is set to enhance user experiences and drive growth through the introduction of new or enhanced services such as the revamp of the 'Advance Booking' feature for its mobility services and the expansion of its 'Dine-in' service.
"Looking beyond business performance, Grab Thailand remains strongly committed to empowering people and protecting the planet. Our GrabEV program, dedicated to fostering the adoption of electric vehicles among driver- and delivery-partners, will continue with further partnerships and initiatives with an aim to accelerate our goal of achieving a 10% EV adoption rate by 2026. Moreover, we actively seek collaborations with both local and international partners to address pressing environmental concerns, particularly in reducing single-use plastics."
"We will continue creating economic empowerment opportunities for our driver- and merchant-partners, with a specific focus on supporting women this year. Through these efforts, we aim to create a more inclusive and sustainable ecosystem, empowering communities and laying the foundation for a better future for everyone," Worachat concluded.
1 Grab internal data between 2022 vs 2023
2,3 Source: e-Conomy SEA 2023 report
4 Grab internal data in 2023