Grab set to make ‘tough decisions and trade-offs’ amid Covid-19 outbreak

Grab said it will be making “tough decisions and trade-offs” as the company continues to evaluate the ongoing pandemic’s impact on its business.

Photo credit: Grab

In a letter addressing the challenges brought by Covid-19, Grab’s group CEO and founder Anthony Tan said that the ride-hailing firm will undergo “necessary operational adjustments,” which includes right-sizing its costs and managing capital more efficiently, to weather the storm.

“Covid-19 is the single biggest crisis to affect Grab in the eight years of our existence. It has had an unprecedented impact on our operations, our business, and the livelihoods of our partners,” said Tan. Grab’s senior leaders recently took a 20% pay cut to help the business cope.

The chief exec noted that in cities and countries experiencing major lockdowns, Grab has seen a sharp decline in its ride-hailing business, with volumes in some markets down by double-digit percentages.

Its delivery business has fared better, Tan said, as stay-at-home measures drive online food and grocery deliveries. To meet this increased demand, Grab has started expanding its daily essentials delivery service GrabMart and on-demand service GrabAssistant to more cities and countries.

As a result, GrabMart will be available to users in the Philippines, Myanmar, and Cambodia, while GrabAssistant will be accessible in the Philippines, Indonesia, and Thailand. The concierge service will also be relaunching in Vietnam.

Tan also said that Grab has also committed to spend US$40 million for relief initiatives in Southeast Asia, as it looks to support its driver- and merchant-partners during the outbreak.

The company recently expanded its Partner Relief Initiatives from Singapore, Thailand, and Vietnam to Indonesia, Malaysia, Myanmar, and the Philippines.