Grab promises to invest $500 million into Vietnam
Ride-hailing company Grab is going to focus some of its efforts on Vietnam with a $500 million investment over the next five years to grow its activities in the country.
While Grab started as a ride-hailing company, it is now much more than that. The company has become a “super app” that you can open to order a ride, order food from restaurants, make payments, get insurance products, loans and much more. It is mostly active in Southeast Asia.
The company recently announced that it would use some of the $7 billion that it has raised to date to bet on Indonesia. Grab plans to invest $2 billion in Indonesia to modernize the country’s transportation infrastructure. The Indonesian government is supporting the move, and Grab is using this opportunity to capture market share.
With today’s move, Grab is essentially doing the same thing at a smaller scale in Vietnam. In particular, Grab is once again partnering with government officials. It has announced a “Tech for Good” roadmap in the country that should foster Vietnam’s economic development at large.
Grab plans to provide work opportunities in 63 cities in order to fight unemployment rate. The company is looking for drivers, delivery persons and merchants. They will be able to access credit and insurance products. Of course, this plan will only work if there are enough Grab customers in those cities over the long term.
The company plans to invest in local startups through GrabVentures. Grab will also launch programs to improves digital and financial literacy. Finally, Grab plans to share data with local governments in order to tackle traffic congestion and pollution.
When it comes to metrics, Grab is already quite big in Vietnam. For instance, the company is currently handling 300,000 food deliveries per day through GrabFood. It represents a 400 percent increase in gross merchandise volume during the first half of 2019. Grab drivers have generated close to $1 billion in revenue over the years.