What having an ecommerce marketplace could do for Grab

Every day, 100k+ smart people read our newsletter. You can sign up here.

Hello readers,

My journey with ecommerce started when I was a teenager and I would buy clothes and accessories off blog shops on the internet. Now, it’s transitioned into my love affair with Shopee, which I talked about last week. Honestly, I don’t know where I would be without ecommerce – buying stuff online is a huge part of my life.

While ecommerce is a big deal for me, it may not be particularly important to regional decacorn Grab. A venture into ecommerce may present new opportunities for the firm, but it may also not be worth the hassle.

Today we look at,

• Whether Grab should go into ecommerce
• This Japanese HR tech firm’s latest round of funding
• Other newsy highlights such as GoTo’s fundraising plans and PhonePe’s legal troubles

PREMIUM SUMMARY

Should Grab have ecommerce ambitions?

The merger between Gojek and Tokopedia has turned up one big question: Should Grab acquire an ecommerce marketplace of its own? It may seem like a good idea, given the sheer size and potential of ecommerce, but it may not necessarily be in the cards for the Southeast Asian super app.

• All in favor: Ecommerce gives additional leverage in attracting consumers and enables the cross-selling of other services. It would also benefit Grab’s payment infrastructure tremendously and enable it to cross-sell and synergize with its logistics and delivery services.
• Maybe not the best idea: However, ecommerce is notorious for burning cash. Shopee, which is owned by Sea, is fueled by the growth of its sister gaming company Garena. Grab doesn’t have that kind of money to burn, given that it is still working on getting its core businesses to profitability.
• Opportunities ahead: Going into ecommerce may distract Grab from its central products. But the door remains open, and there are other ecommerce models such as social commerce that the firm may benefit from exploring.

Read more: Following the GoTo merger, should Grab buy an ecommerce marketplace?

STARTUP SPOTLIGHT

We got the Grooves

Creating a frictionless – and secure – ecommerce experience