Grab contributed $3.5b to the Indonesian economy last year: CSIS study

New research from the Center for International and Strategic Studies (CSIS) has found that Grab contributed 48.9 trillion rupiahs (US$3.46 billion) to Indonesia’s economy in 2018. The release of the think tank’s findings comes just weeks after a Universitas Indonesia study found that rival “super app” Go-Jek added 44.2 trillion rupiahs (US$3.12 billion) the country’s economy last year.

Photo credit: Grab

CSIS, working together with its local affiliated consultancy Tenggara Strategics, found that:

• GrabFood contributed the equivalent of 20.8 trillion rupiahs (US$1.47 billion) to Indonesia’s economy in 2018.
• GrabBike contributed 15.7 trillion rupiahs (US$1.11 billion).
• GrabCar contributed 9.7 trillion rupiahs (US$686 million).
• Kudo, the online-to-offline agents’ network that Grab acquired in early 2017, contributed 2.7 trillion rupiahs (US$191 million).

Based on a survey of partners in five cities, the research also claims that:

• Average monthly income for GrabBike drivers increased by 113% after joining the Grab platform
• Average monthly income for GrabCar drivers increased by 114% after joining the Grab platform
• Average daily sales for GrabFood merchants increased by 25% after joining. They made an additional 11 million rupiahs (US$778) in monthly sales without additional investment costs.
• 31% of Kudo’s individual agents who earned no additional income before joining the platform now make at least 2 million rupiahs (US$141) per month, while 50% of store agents have increased their sales to over 1 million rupiahs per week since joining

The findings are estimated from responses to a survey of 3,418 micro-entrepreneurs carried out in November and December 2018. Respondents had to have been active on the Grab platform in the three months preceding the survey, which involved face-to-face interviews.

Tech in Asia is reaching out to Grab for further details on the research, and will update this story as necessary.

Currency converted from Indonesian rupiahs. Rate: US$1 = IDR 14,147.97

This is a developing story. Please check back for updates.