Grab is still in the the driver’s seat, but other ride-hailers aren’t lagging behind

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Ride-hailing has become a way of life in Southeast Asia. I can’t remember the last time I flagged down a cab on the street.

If I need a ride, I open up my Grab or Gojek app, tap a few buttons, and off I go I feel a little safer as well: If anything goes wrong, at least there’s a record of the ride on the platform.

It’s been over a decade since ride-hailing made its debut in the region, and the industry has evolved and matured.

Grab’s still the biggest fish in the pond, but many other contenders have emerged, offering new business models or approaches to ride-hailing. But will they be able to take on the behemoth that is Grab? We explore this question in today’s premium story.

Today we look at:

• Whether Grab can remain at forefront of Southeast Asia’s ride-hailing race
• An Indonesian coffee startup’s series A round
• Other newsy highlights such as VinFast’s Q1 2024 numbers and how Baidu’s answer to ChatGPT has been faring

Premium summary

The state of Southeast Asia’s ride-hailing scene

Image credit: Timmy Loen

Grab is the leader in Southeast Asia’s ride-hailing space, commanding around 70% market share. Its competitors are not slowing down, though, as funding rounds, public listings, and expansion moves are on the rise across the sector. All this activity, however, does raise the question: Is Grab’s ride-hailing business future-proof?

• The current state of affairs: Grab capitalized on a period of low interest rates from 2008 to early 2022 to acquire both customers and drivers, allowing it to establish itself in the market. But that era of “easy money” is over, and it’s more challenging for ride-hailing players nowadays.
• Differentiation at play: Despite these conditions, Grab’s rivals aren’t giving up. While they’re not necessarily challenging Grab’s dominance, they’re experimenting with alternate models designed to offer customers and drivers more choices.They’re also exploring opportunities in areas such as electric vehicles and expanding into markets like Laos, where Grab isn’t active.
• Not resting on its laurels: For its part, Grab continues to roll out new services, such as a group rides feature, and is still investing in its mobility business.

Read more: Is Grab’s ride-hailing business future-proof?

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