Food and Beverage Business Plans

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Bakery Business Plans

  • Delicatessen and Bakery Business Plan
  • Dessert Bakery Business Plan
  • Specialty Baker Business Plan
  • Bakery Business Plan

Bar & Brewery Business Plans

  • Bar and Tavern Business Plan
  • Brewery Business Plan
  • Hookah Bar Business Plan
  • Karaoke Bar - Bowling Alley Business Plan
  • Microbrew Bar Business Plan
  • Nightclub Business Plan
  • Nightclub Saloon Business Plan
  • Nightclub, Dance Classes Business Plan
  • Singles Bar Business Plan
  • Sports Bar Business Plan
  • Microbrewery Business Plan
  • Wine Store Business Plan

Catering & Food Truck Business Plans

  • Catering and Ballroom Rental Business Plan
  • Catering Company Business Plan
  • Food Preparation Business Plan
  • Food Truck Business Plan

Coffee Shop & Cafe Business Plans

  • Cafe Bistro Coffeehouse Business Plan
  • Coffee Kiosk Business Plan
  • Coffee Roaster Business Plan
  • Coffee Shop Business Plan
  • Coffeehouse Business Plan
  • Convenience Store Cafe Business Plan
  • Internet Cafe Business Plan
  • Religious Coffeeshop Business Plan
  • Sports Equipment Cafe Business Plan
  • Tea Room Business Plan
  • Coffee Distribution Business Plan
  • Coffee Export Business Plan

Restaurant Business Plans

  • Bed and Breakfast - Caribbean - Business Plan
  • Bed And Breakfast Business Plan
  • Bed and Breakfast Inn Business Plan
  • Bowling Entertainment Center Business Plan
  • Deli Restaurant Business Plan
  • Ethnic Food Restaurant Business Plan
  • Fast Food Restaurant Business Plan
  • Fine Dining Restaurant Business Plan
  • Franchise Sandwich Shop Business Plan
  • Healthy Restaurant Business Plan
  • Italian Restaurant Business Plan
  • Mediterranean Restaurant Business Plan
  • Mexican Restaurant Business Plan
  • Movie Theater Restaurant Business Plan
  • Organic Restaurant Business Plan
  • Pasta Italian Restaurant Business Plan
  • Pie Restaurant Business Plan
  • Pizzeria Business Plan
  • Pizzeria Franchise Business Plan
  • Sandwich Restaurant Business Plan
  • Steak Buffet Restaurant Business Plan
  • Steak Restaurant Business Plan
  • Themed Restaurant Business Plan
  • Fast Food Service Business Plan
  • Small Restaurant Business Plan

Specialty Food & Beverage Shop Business Plans

  • Butcher Shop Business Plan
  • Dinner Theater Business Plan
  • Ethnic Food Import Business Plan
  • Frozen Custard Shop Business Plan
  • Convenience Store Soda Fountain Business Plan
  • Gourmet Food Store Business Plan
  • Organic Food Store Business Plan
  • Pizza Delivery Business Plan
  • Shaved Ice Beverage Business Plan
  • Ice Cream Shop Business Plan

Wholesale Food & Beverage Business Plans

  • Agriculture Fruit Farm Business Plan
  • Hydroponics Farm Business Plan
  • Nonprofit Food Bank Business Plan
  • Pasta Manufacturer Business Plan
  • Produce Farm Business Plan
  • Salsa Manufacturer Business Plan
  • Wholesale Food Business Plan
  • Wholesale Food Manufacturer Business Plan
  • Wholesale Juice Business Plan

Food and beverage industry overview

The food and beverage industry includes all businesses involved in the production, distribution, and sale of food and drinks.

The global food and drink market is expected to grow at an annual rate of 11.9%, reaching a market volume of $3.8 billion by 2027. This increase sharply contrasts the declining industry performance over the last three years.

Contributing factors to this performance are:

  • Expected ease of inflation over the next year.
  • Continued innovation in beverage and grab-and-go options.
  • Increased interest in health-conscious options.
  • Lifestyle changes as consumers increase travel and return to the office.

Additionally, the increased adoption of app-based and eCommerce purchasing options will continue to fuel discretionary spending in this category. Portable eating, tech-based purchasing, and alternative health and wellness products or services all show great promise for new entrants.

How to start a food and beverage business

To start a food and beverage business, you need to focus on the following:

1. Identify an idea that meets current demand

Identify your target market and potential competitors. Then, develop a unique product or service that serves a specific need—such as a particular cuisine, dietary need, or a unique dining experience.

2. Write a business plan

Create a business plan that thoroughly explains your business model, operations, pricing strategy, and financial projections.

3. Handle health, safety, hygiene and legal compliance

Food and beverage is a highly regulated industry with additional legal, health, and safety requirements. You must develop strict health and safety standards, prepare a staff training plan, and apply for permits or licenses relevant to your food or beverage offering.

4. Operations and relationships with suppliers

Establish relationships with reliable suppliers to acquire consistent quality ingredients. Focus on implementing an effective inventory management system that helps minimize waste and unnecessary expenses.

5. Location, layout, and staffing

Purchasing behavior and workflows are rooted in your business location and how your business is presented. Carefully choose a location and layout that fits your customers’ expectations and provides a healthy working environment for your employees.

Then, focus on training to ensure quality service, adherence to safety protocols, and the representation of your brand values.

6. Startup costs and financial management

Hefty upfront investments can be needed to start a food and beverage business. Kitchen equipment, menus, signage, POS systems, and mobile ordering technology scratches the surface.

You’ll likely be operating on thin margins, making effective financial planning necessary early on. Take direct inventory of what it will cost to start and run your business for the first year. Consider if you need funding and put a system in place to forecast and review your performance regularly.

7. Marketing and branding

You will have plenty of competition as a food and beverage business. Every restaurant, big brand, delivery service, grocery store, and mini-mart is a potential alternative.

So, don’t sleep on your branding and marketing efforts. Remember your target market, choose the proper channels, and develop a memorable visual identity that fits your mission.

For more on starting a business, check out our full selection of startup resources.

How to write a business plan for a food and beverage business

Here are some specific sections and information to focus on when writing a business plan for a food, beverage, or restaurant business.

Market analysis

The food and beverage industry is a highly competitive market with established competition and a steady influx of new entrants. Thoroughly document who you will be competing with, how you are different, and your ideal customers. This information will influence everything else about your business.

Business model

You’ll notice a trend through the rest of these, but you need a detailed description of how you will make money. As mentioned before, food and beverage businesses often operate on incredibly thin margins.

You need to be sure that your revenue streams make sense for the market, can consistently bring in cash, and will be sustainable long-term.

Menu and product offerings

Specific to this industry, you must cover what you offer and provide a sample menu or product list. It should directly relate to the interest of your clientele and showcase what you offer.

Describe your location, including a layout of your store or restaurant and details for how your business will operate—how you will work with suppliers, specific workflows, equipment needs, and staffing.

Focus on demonstrating quality and efficiency when outlining your operations, and don’t forget to revisit it as you run your business.

Financial projections

Provide detailed financial projections to map out your revenue and expenses. At a minimum, cover startup costs, break-even analysis, profit and loss forecasts, and cash flow statements.

Include any assumptions behind your projections and map out funding needs if you intend to pursue a loan or other investment.

You can use any of our food, beverage, or restaurant sample plans to ensure you cover the right information in your plan. For a detailed overview, check out our complete business plan outline.

What is an example of a food and beverage business?

Food, beverage, and restaurant businesses include:

  • Agriculture and food production
  • Food processing and packaging
  • Alcoholic and non-alcoholic beverage production
  • Restaurants
  • Food transportation services

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grab food business plan

Grab Business Model

Dissecting The Grab Business Model

Executive Summary:

Grab is a super app based in Southeast Asia which offers a variety of different products and services, ranging from food delivery all the way to investment products.

Grab makes money via driver and restaurant commissions, payment processing fees, advertising on its platform, referral fees, and many more.

Its business model is predicated on becoming a super app that can fulfill almost any everyday need a customer has.

Launched in 2012, Grab has grown to become one of the world’s biggest platforms. It has raised over $12 billion over the course of its existence.

What Is Grab?

Grab is a Southeast Asian super app that offers a variety of different services, ranging from food delivery all the way to insurance policies.

Grab is currently active in eight countries, including Malaysia, Myanmar, Cambodia, Philippines, Vietnam, Thailand, Indonesia, and Singapore.

Depending on the country of residence, a different set of products is available. Nevertheless, all the available products can be used within one single app. The super-app concept was first popularized in China with Tencent’s WeChat and Meituan leading the charge.

Some of the products that Grab currently offers include:

  • GrabRides, a ride-hailing platform allowing users to book taxis and other vehicles on demand
  • GrabFood, a food delivery product providing restaurant food
  • GrabMart, allowing users to order groceries
  • GrabPay, a digital wallet enabling users to make purchases in the real world
  • GrabInsure, offering insurance products for your travels and rides
  • GrabFinance, which provides loans to drivers and ‘buy now, pay later’ solutions to customers

… and a few more. It has to be noted that Grab often tests different products within the app to see what eventually sticks.

For its delivery and mobility products, Grab works together with independent contractors that work on a per-order basis (i.e., whenever a customer books a cab or orders food).

Grab can be downloaded and used on any mobile or tablet device that runs on Google’s Android or Apple’s iOS software.

How Grab Started: Company History

Grab, headquartered in Singapore, was founded in 2012 by Anthony Tan and Hooi Ling Tan (no family relation).

The two founders, who grew up under vastly different circumstances in Kuala Lumpur, Malaysia, first met each other during their MBA studies at Harvard’s Business School. 

Prior to the MBA, Hooi Ling Tan, after graduating with a Mechanical Engineering degree from the University of Bath, worked as a business analyst at McKinsey.

Anthony Tan, on the other hand, was born into one of Malaysia’s richest families. His grandfather, the late Tan Yuet Foh, had co-founded Tan Chong Motor, one of Malaysia’s biggest automobile distributors, in the 1950s.

Anthony joined the family business in the mid-2000s after graduating from the University of Chicago. Hooi Ling and Anthony would eventually meet each other during one of their Harvard classes called Business at the Base of the Pyramid .

As part of the class assignment, the duo was tasked with developing a business idea and plan. The concept they developed became the eventual basis for Grab.

At the time, Uber was making headwinds as a revolutionary way of booking cabs online. Its matching technology removed many of the pain points that the taxi industry traditionally caused, including a lack of price transparency as well as long waiting times.

Anthony and Hooi Ling adapted that very same concept to their home country of Malaysia, largely informed by Hooi Ling’s experiences as a consultant at McKinsey. During her tenure, she would often leave the office late at night and get herself a cab for the way home.

Unfortunately, at the time, Malaysia was particularly known for its lack of safety, with countless rape cases being reported every year. As a result, Hooi Ling developed a manual GPS tracking system in which she would text her mom the name of the driver and the license plate number of the taxi (while updating her throughout the ride).

The pair eventually used that business plan to participate in a Harvard Business School competition. As runner-ups, they ended up receiving a $10,000 check. The reason why they placed second was that the judges thought that Malaysia was too small of a market to go after.

Armed with an initial check, Anthony ended up convincing his mother to provide the team with their first-ever angel round of funding. After months of development, they launched what was then called MyTeksi in June 2012.

To recruit drivers, Anthony would set up a table next to various gas stations and offer cab drivers nasi lemak, a local Malaysian dish, in exchange for them joining the platform. Within a year, they managed to recruit around 2,500 drivers in Kuala Lumpur where MyTeksi was first incorporated and launched (Grab moved its headquarters to Singapore, where Anthony was spending most of his time, in 2014).

Others were soon beginning to take notice. Competitors like TaxiMonger, Hopcab, and EasyTaxi began to soon emerge. EasyTaxi, in particular, became a notable threat. Funded by Rocket Internet, the German copycat investor which had previously launched Lazada , the incubator soon began pouring millions of dollars into EasyTaxi.

In July 2013, MyTeksi expanded into the Philippines, its first foreign market, under the brand name GrabTaxi. Subsequent launches in Thailand and Singapore would follow within the next three months.

Competition across the Southeast Asian region would really begin to heat up in January 2014 when Uber launched its ride-hailing service in Kuala Lumpur. A month later, the now fully-rebranded GrabTaxi also launched in Vietnam.

By that time, Uber had already raised over $500 million in venture funding and was valued at over $3 billion. As a result, Grab needed to follow suit. It raised its first-ever institutional round, a Series A of over $10 million, in April 2014. 

Grab, furthermore, began to mimic Uber’s offering. In May, it launched GrabCar, a ride-hailing service that allowed not only taxi drivers but anyone owning a car to drive for the platform. Simultaneously, Grab also raised its Series B one month after the Series A, adding another $15 million to its war chest.

Interestingly enough, Grab implemented a few strategies that allowed it to differentiate itself from Uber. First, Grab allowed users to pay in cash (instead of credit cards), a payment method that was much more popular in Southeast Asia at the time.

Furthermore, Grab actually handed out Android smartphones to many of its cab drivers. During the first few years, smartphone penetration among cab drivers was extremely low. The smartphone gifting approach allowed it to build up its supply-side while gaining loyal drivers.

The battle for ride-hailing supremacy was taken to a next level in October when Grab raised another $65 million. At the time, Grab had already been downloaded over 2.1 million times while having amassed a network of 50,000 drivers.

Amazingly, Grab’s fundraising spree did not stop there. In December, it became a unicorn (a private company valued at over $1 billion) just 2.5 years after launching, raising another $250 million (primarily from SoftBank) in the process. A few days after, Uber followed up with a massive $1.2 billion fundraise of its own.

By the end of 2014, it became a battle between Grab and Uber after EasyTaxi pulled out of Southeast Asia while others simply had to shut down.

Equipped with over $330 million in funding, Grab began not only expanding into new cities but putting its money into the launch of additional products and services. For example, it launched cashless payments (via credit cards) as well as GrabDelivery, a next-day delivery service, at the beginning of 2015.

A lot of the firm’s innovations were made possible by the launch of its R&D center in Singapore. Subsequent office launches would follow in Beijing, Ho Chi Minh City, Jakarta, Seattle (where it was able to lure American talent), and Bangalore.

Another ‘gimmick’ that grab employed was that, as opposed to Uber, it was actually working in conjunction with local jurisdictions whenever it launched a new city. For instance, in July 2015, Grab, therefore, became the first ride-hailing service that was a fully accredited Transportation Network Company (TNC) by the Philippine’s Land Transportation Franchising & Regulatory Board (LTFRB).

In August 2015, Grab announced its next funding round of $350 million. What was particularly interesting was the round’s lead Didi, one of China’s largest taxi apps. Interestingly enough, Didi continued to invest in Uber’s major competitors, for instance by leading Bolt ’s Series B round.

The Grab and Didi tie-up became much clearer in December of the same year. The two companies alongside Lyft in the U.S. and India’s Ola inked a strategic partnership to work together on technology and service. As such, customers of either app would be able to use the partner app (without having to download it) whenever they traveled to one of their countries.

Unfortunately, not everything was always going according to plan until that point. In August 2015, Grab’s then-CTO Wei Zhu left the company just one year into his job. He would then go on to file a lawsuit against Grab over outstanding share compensation ($2.3 million worth of shares, in fact).

A month after Uber sold its China business to Didi (August), the latter also invested more cash into Grab, taking part in the firm’s $750 million fundraise. The deal valued Grab at over $3 billion. However, Grab wasn’t the only one making strides.

A new competitor had emerged over the past few years. Jakarta-based Go-Jek began life as a taxi dispatch software and subsequently moved into ride-hailing. The startup had amassed a significant market share in Indonesia, Southeast Asia’s by far largest market in terms of population. Just a few weeks before Grab’s round, Go-Jek had just raised a whopping $550 million themselves.

Meanwhile, Grab’s executive exodus continued as well. The company lost its CFO Linda Hoglund, which it just hired in May, months later in November 2016. Despite losing its most senior financial executive, Grab remained undeterred towards its grander vision.

The first step towards becoming the super app it is today came towards the end of 2016. In December, Grab began allowing users to store money within its app (to pay for rides) while introducing a new payment service called GrabPay.

To that extent, Grab also made its first-ever major acquisition in February 2017. It bought Indonesian payment platform Kudo for around $100 million to integrate it into Grab’s own payment system. That wasn’t the only major investment of that year, though.

In March, Grab as well as Uber expanded into Myanmar, which opened itself up after free elections in 2015. Grab went so far as to commit over $100 million in investments into the country to build out the necessary infrastructure for its services. Both also launched in Cambodia in September.

The expansions were made possible by one of the largest ever funding rounds in Southeast Asia. In July 2017, Grab raised a whopping $2 billion from SoftBank and Didi. By the end of 2017, Grab managed to cross the inaugural mark of one billion total rides.

The move towards becoming a financial powerhouse was officially kicked off in March of the next year. That month, Grab incorporated Grab Financial, an entity that would offer debit and credit cards, loans, insurances, and many other financial products to consumers across the region.

Regardless, the much bigger announcement came just a few days later. Grab and Uber announced that the former would acquire the latter’s Southeast Asia business. On the other hand, Uber would be granted a 27.5 percent stake in Grab.

Within two weeks, Uber’s regional app was shut down. Unfortunately, not everyone was pleased with the merger. Both Singapore and the Philippines began investigating the deal over concerns of anticompetitive practices.

While the Philippines eventually approved the merger, the Singaporean government ended up fining both Grab and Uber, forcing them to pay a total of $9.5 million. Lucky for Grab, that fine represented a mere pocket change.

In mid-2018, the company embarked on one of the longest and biggest ever funding rounds in startup history. Over the course of more than a year, Grab managed to raise a whopping $6.5 billion during its mega Series H round.

The investments were largely of strategic nature and came from companies like Toyota, Thai bank Kasikorn, Hyundai, Microsoft, Booking Holdings, and dozens more. Grab would then go on and cooperate with these companies. For instance, in October 2018, Grab agreed to adopt Microsoft’s Azure as its preferred cloud platform.

These strategic partnerships also helped to fuel its super app ambitions by allowing Grab to expand into additional verticals.

Furthermore, the company also began to make strategic investments itself as part of the launch of Grab Ventures. For instance, in October 2018, Grab invested $100 million into the budget hotel network OYO. In turn, OYO committed to integrating GrabPay into its own platform.

Product and market expansions, fundraising, as well as venture investments continued in 2019 as well. One key move, although not evident at the time, became its integration of GrabFood into the main Grab application, thereby allowing users to conduct all of their actions within one single app.

2019 saw Grab introducing cloud kitchens, a Mastercard-branded debit card, on-demand cleaning and repair services (Clean & Fix), and more. Nevertheless, some troubles still remained.

The antitrust watchdog Philippine Competition Commission (PCC) fined Grab’s Philippines unit $318,000 for overpricing and higher drive cancellations. The Malaysian and Indonesian governments also began to investigate the company over anticompetitive behavior. 

While Grab started the new year off well by raising $856 million from Mitsubishi UFJ Financial Group in February 2020, bigger challenges would soon emerge. The coronavirus pandemic essentially decimated most of its ride-hailing business (especially with no travelers being allowed into Southeast Asia).

As a result, Grab had to lay off 5 percent of its workforce (equal to around 360 people). Furthermore, and certainly the bigger news, reports began to emerge that Grab and Go-Jek had initiated merger talks back in February 2020.

However, those negotiations ultimately fell through towards the end of 2020. Instead, Go-Jek decided to merge with Indonesian online marketplace Tokopedia.

One of the major reasons why the Grab-Go-Jek merger failed was that Grab was demanding majority ownership (reports stated over 60 percent) of the combined entity. Second, Anthony Tan wanted to be named CEO for life and sought absolute voting and decision-making power.

Instead, Grab remained independent and, in April 2021, it announced it would go public via a SPAC merger with Altimeter Growth Corp. 2. The deal would value Grab at $39.5 billion, making it the largest-ever SPAC (not bad for a company whose home market was considered too small 10 years ago).

How Does Grab Make Money?

While Grab began as a marketplace, its business model has now evolved towards becoming Southeast Asia’s leading super app.

As such, it is building ancillary products and services (such as personal assistants or even investing) to fulfill the everyday needs of its users.

One major advantage of the super app model is that users are already accessing the main app every day. For instance, when launching a new product like express deliveries, Grab does not have to spend millions in marketing dollars to advertise the service, but can simply push it within the app.

Furthermore, Grab’s users are accustomed to the quality of their services. Therefore, whenever a new one launches, customers will be more inclined to (at the very least) test it out.

Depending on the type of product and service, Grab will either build up the capabilities itself or partner with other companies to provide that service (such as with its insurance products).

Let’s, therefore, take a closer look at all the ways that Grab makes money.

Grab offers a variety of transportation opportunities under its Rides section. Examples include:

  • JustGrab: booking the closest taxi or car
  • GrabHitch: carpool with other users, allowing them to save up to 40 percent
  • GrabBike: ride-sharing via motorbikes
  • GrabFamily: cars that offer additional safety measures
  • GrabPet: ride options allowing to transport pets

… and plenty more. In order to become a driver, one needs to be at least 18 years old, possess a valid driving license, as well as have their vehicle vetted by the company.

Driving partners are hired on a contractual basis, meaning they are free to work whenever they please. Grab has developed a separate app for its drivers through which they can log their work.

That also means that drivers have to pay for fuel, insurance, and possible repairs themselves. However, Grab has partnered with other companies to aid its drivers. For instance, its 2018 partnership with Toyota allows drivers from the Philippines to take out favorable loans to upgrade their cars.  

Grab then generates revenue by taking a percentage cut, which floats around 20 percent, from the overall fare. If, for instance, a ride costs $10, then Grab gets to keep $2.

With GrabFood, users can order meals from restaurants in proximity. Whether fast food or healthy, there’s something available for every taste.

Grab works together with drivers who pick up the food from the restaurant and deliver it to the customer’s address.

In exchange for that service, customers pay a delivery fee. The amount they end up paying is dependent on the distance between the restaurant and the customer’s home. Customers, similar to GrabRides, can also tip drivers (100 percent of the tip will go to the driver).

Grab makes money from its food business by taking a percentage cut from the restaurants (called service fee). The service fee ranges anywhere between 25 to 30 percent, which is in line with other services like Deliveroo or Foodpanda.

Apart from working with restaurants, Grab also launched a cloud kitchen business (called GrabKitchen) back in 2019. These cloud kitchens are operated in cooperation with established restaurant owners.

Since Grab provides the kitchen infrastructure, it can be assumed that the percentage cut it takes from the partner is slightly higher.

Similar to GrabFood, users can also order groceries and beverages from different supermarkets and kiosks.

Available products include packaged food (e.g., bread or cookies), drinks (juices, milk), healthcare products (medicine, sanitizer), personal care (such as shampoo), household products (detergents or dishwashing liquid), and gifts (such as books or flowers).

Again, Grab makes money from the service by taking a percentage cut from the stores it works together with. That cut, however, is likely much lower compared to GrabFood and GrabRides. That’s because margins in the FMCG space tend to be much lower.

Furthermore, prices on GrabMart are, in all likeliness, slightly higher compared to the ones within the store. As such, the margins on the products tend to be higher.

Going forward, it may be possible that Grab begins to source and store products in its own warehouses (much like Gopuff in the U.S. or Gorillas in Europe).

In markets like Indonesia, Grab also operates its own little stores (via GrabKios). These are Grab-branded kiosks allowing users to pay with their Grab app. The kiosks emerged as part of Grab’s $100 million acquisition of Kudo back in 2017, which allowed traditional retailers such as kiosks to sell digital and physical goods through its app.

GrabExpress

Apart from people and food, users on Grab can also have items transported via the riders on its platform.

With GrabExpress, users can, for example, send letters to another address in proximity. Depending on the package size, items are either transported by motorbikes or cars.

Furthermore, packages are insured (up to SGD 500 in Singapore) and can be tracked in real-time throughout the delivery.

Similar to GrabRides, Grab takes a percentage cut from the overall fare. Fees are largely similar to the ride-hailing service.

GrabPay is a mobile wallet that allows users to pay for goods and services within Grab’s app ecosystem as well as at selected in-store merchants.

Grab’s payment arm is likely its most important business unit when it comes to securing its status as Southeast Asia’s leading super app.

Many of its direct and indirect competitors, including Go-Jek, Lazada, or Shopee , have expanded into the high-margin payments business by introducing wallets of their own.

However, Grab has taken this a step further. In December 2020, for instance, was one of four companies to be awarded a digital banking license in Singapore (Sea, Shopee’s owner, was another one).

Being a fully licensed bank will allow Grab to move into other financial services, including the issuance of loans or providing customers with checking accounts.

Close to 300 million people in Southeast Asia remain unbanked. As such, Grab has the opportunity to become the first bank account that many of its users ever had.

In the future, Grab can then offer ancillary services such as loans, insurances, or investment products. The major advantage here is that Grab collects an abundance of data on a user’s spending habits (and more), thereby allowing them to tailor their offering to the user’s specific needs.

Nevertheless, Grab already generates a significant amount of revenue via GrabPay today. For starters, merchants offering GrabPay pay a small fee on every transaction (around 1 percent). Grab works together with the likes of Adyen and Stripe to be able to process these payments.

Furthermore, Grab has issued its own physical debit cards in cooperation with Mastercard. Whenever you pay with a debit or credit card, a so-called interchange fee is applied. Grab and Mastercard, as the issuer of the card, will then likely split that fee between the two of them.

Also, Grab has launched a ‘buy now, pay later’ service, allowing customers to pay for goods in four installments. While the service is technically free, customers will have to pay a penalty fee (around 4 percent) if they miss paying for an installment.

GrabAssistant

GrabAssistant, available in a few, selected countries like Thailand, is an on-demand concierge service fulfilling various tasks.

Users can book assistants to buy pet food, gardening supplies or plants, medicine, pick up laundry, and plenty of other tasks.

Again, Grab takes a percentage cut from the order volume. On top of that, users pay the driver a delivery fee and can optionally tip them.

GrabRewards

Whenever you book a ride, order food, or pay with your Grab Wallet, points are given according to the money spent.

These points can then be redeemed for other products (such as headphones) or to get discounts (30 percent off at certain restaurant partners).

Grab uses the reward system to incentivize users to repeatedly use its platform. The thinking is that users will eventually get used to the platform that switching simply is too inconvenient.

Apart from increased customer loyalty, Grab also generates revenue through its rewards program. Its program partners likely pay the firm a small referral fee for bringing in additional customers.   

GrabGifts is a virtual gift card that users can send it others. The card can then be used for a variety of grab services, including rides, food delivery, supermarket, and express deliveries.  

Grab has partnered with local insurance companies to offer various policies to both its customers as well as drivers.

Available insurance options include travel insurance (in case you don’t make a trip) as well as accident coverage during a Grab ride.

Customers pay for the insurance during the booking of a trip. Since Grab has partnered with insurance underwriters for coverage, it can be assumed that the fee paid is then shared between Grab and its insurance partner.

Both Grab and the insurance underwriter have millions of data points about past rides available at their disposal. As such, they can reliably calculate how likely an accident actually is, thereby making it more lucrative to offer these types of insurances.

GrabAds is an enterprise product that allows other business to advertise their goods and services on Grab’s platform.

Millions of people access Grab’s ecosystem every day. Furthermore, Grab has data on its user’s spending habits, preferred locations, as well as other preferences.

According to Grab, over 60 percent of users that open the app transact on it within the same session. As such, it can provide advertisers with a highly targeted audience that is willing to buy.  

In the past, Grab has worked together with advertisers such as Nike, Apple, McDonald’s, Disney, Unilever, Coca-Cola, and many more.

These advertisers, in all likeliness, pay Grab on a cost-per-click (CPC) basis. That means whenever a user clicks on an advert, a pre-negotiated CPC fee is subtracted from the advertiser’s budget.

Furthermore, Grab also does offline advertising, for instance by putting samples into cars or wrapping sticker ads around the car. In that case, both parties likely agree on a fixed compensation to run those ads over a certain period of time.

Grab Funding, Revenue & Valuation

According to Crunchbase , Grab has raised a total of $12.5 billion across 34 rounds of debt and equity funding.

Notable investors include SoftBank, Tiger Global Management, Yamaha, GGV Capital, Microsoft, HSBC, 500 Startups, Vertex Ventures, Toyota, and many more.

With its SPAC merger, expected to go through by the end of 2021, Grab is seeking a valuation of around $40 billion.

For the fiscal year 2020, Grab reported revenues of $1.6 billion. Meanwhile, the company still lost $800 million over the very same timeframe.

Who Owns Grab?

As a result of its SPAC merger with Altimeter Growth, Grab founder and CEO Anthony Tan will only own 2.2 percent of ordinary shares.

However, the SPAC deal grants him 60.4 percent of the newly formed company’s voting power (via Class B shares). The Class B shares carry 45 times the voting power of ordinary shares.

As such, Tan can outvote any of the other investors and board members, thereby giving him absolute decision-making power.

This constellation is not uncommon, in particular within founder-led companies. Facebook CEO Mark Zuckerberg, for instance, also controls most of his firm’s voting power.

The second co-founder, Hooi Ling Tang, as well as president Ming Maa will own 1.1 percent of ordinary shares after the transaction.

Grab’s largest shareholders (in terms of ordinary shares) are the SoftBank Vision Fund (18.6 percent), Uber (14.3 percent), Didi Chuxing (7.5 percent), and Toyota (5.9 percent).

grab food business plan

Viktor Hendelmann

Hi folks, Viktor checking in! Years of experience in various tech-related roles have led me to start this blog, which I hope provides you with as much enjoyment to read as I have writing the content.

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Last Updated on December 23, 2022 by Viktor Hendelmann

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Grabfood Marketing Strategy for Online Business Owners

Parker Casio Patty

  • August 22, 2022
  • Digital marketing , Grabfood , Marketing

Grabfood Marketing Strategy for Online Business Owners cover

Grabfood marketing strategy has been proven to be effective at bringing the company a few steps ahead of the competition . Therefore, adapting it to your business can be a smart move.

So, why is it so important? What can these strategies do to your business? How can we apply this strategy to our business? We will answer all of those questions in this short article.

Let’s begin!

What is a Grabfood Marketing Strategy?

As the name suggests, Grabfood’s marketing strategy is a marketing strategy developed by the giant food delivery service company Grabfood. This marketing strategy is used by the company to expand and attract new customers to its service.

Contrary to popular belief, Grabfood marketing strategy is more than just advertising and promotion . It also concerns building connectivity and trust with the customers. As a new online business owner in the industry, adopting Grabfood’s marketing strategy can bring your company a few steps ahead of the curve.

Despite how glorious this plan can be, it is important to note that Grabfood is a multimillion international company with millions of budget to execute its marketing strategy. So, unless you also have millions of budget at your disposal, replicating Grabfood’s marketing strategy to its smallest detail may not be a feasible option.

So, instead of doing that, start with a small and executable marketing strategy that is suitable for your newly-established business.

Why is Grabfood Marketing Strategy Important for Beginner Business Owners?

There are many advantages you can get from applying Grabfood’s marketing strategy for your newly-established business. Besides supporting your business growth, it can also help your business connect with customers. Here are some benefits of applying the Grabfood marketing strategy to your business.

Growing your sales

It is always a fact that a good marketing strategy will make more sales. A good marketing strategy is not all about targeting new customers but also encouraging more sales from your existing customers. In addition, it can also make your business more memorable, more visible, and easier to find when customers need what you sell. It all comes together as the best tool to increase your business’s sales exponentially.

Managing your business’s reputation

As a newly-established business, your business reputation is very important. As you market your business online, putting out advertising, being transparent, and engaging with the customers, a smart tactic will enhance your reputation positively. It is important to note that reputation is one of the marketing benefits that you, as a small business owner, shouldn’t overlook. So, if used correctly, a good marketing strategy can help you gain a positive reputation among customers.

Learning your target audience

A good marketing strategy will help you gain data to learn more about your target audiences. This will help you be more targeted in employing strategy and advertising. In addition, separating your audiences into different segments can also help you develop multiple revenue streams. Once you have a solid understanding of your audiences, you can employ specific tactics to match their needs.

Knowing what works

When you do a series of campaigns without any knowledge of your target audience, you may not know what works and what doesn’t. By employing a marketing strategy, you can gain a metric of your audiences and the impact of your campaigns on them. So, you can use this precious data to assess what to do, when to do it, and what to stay away from.

Earning customers’ trust

Trust is the first and most important aspect for your business to achieve. Without trust, your newly-established business will be very unlikely to make sales. You may be able to attract new customers to your business’s social media account or website. But once they see something suspicious and uneasy, they’ll leave your business and will very likely not come back. So, when it comes to the Grabfood marketing strategy, growing your trust is one of the most important.

How to do Grabfood Marketing Strategy

Now that you know the definition and the advantages of the Grabfood marketing strategy, you may be itching to know how to do it. Grabfood proposes five marketing strategies you can adopt as a beginner online business owner to boost your local sales.

Google My Business

You can use Google’s My Business feature to boost the local SEO of your business. With this free tool, you can add photos of your storefront, your products, and your store interior to let your customer know more about your business. Once you’ve set up everything, be sure to encourage your customers to write reviews of your business.

Social networking

Utilizing social media can also boost your business sales in your local area. In addition, building a social network is also relatively cheap. To do this, make sure you optimize your social media page by keeping the information updated. In addition, regularly posting updates with photos and engaging with customers can also help you gain a more positive reputation.

Online advertising

Customers always carve for something new and innovative. If you have something new and innovative, you may need a method to get your innovation to your potential customers. Therefore, online ads on social networks, sites, and Google searches can help you reach specific customers easily and accurately.

Pamphlet drop

Pamphlet drop might seem outdated in comparison to the previous three methods. However, years of practice prove that this method still works. While you may not be able to constantly remind your customers of your business, printed pamphlets can raise public awareness of your newly-established business.

Email marketing

Due to its inexpensiveness, email marketing has become an integral component of Grabfood’s marketing strategy. It is also worth noting that it is much easier to send promotional emails to existing customers than to use direct emails. However, when doing this type of marketing, make sure that you use the best service you can have.

Final words

Looking at the state of Grabfood in recent years, it has been proven that Grabfood marketing strategy plays an important role in developing this food delivery service company. So, as a beginner in the business world, replicating and adapting their marketing strategy can be the best option to boost your business.

Ensure to follow the guide we have provided to navigate the perilous world of business. Keep trying and stay positive to achieve the best result for your business.

Parker Casio Patty

Parker Casio Patty

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Grab says its food business could push the company to profitability

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  • Ride-hailing company Grab is betting on its growing food delivery business to drive growth and profitability in the long term, according to the regional head of GrabFood, Kell Jay Lim.
  • Grab's food business received a fillip when the company acquired Uber's Southeast Asia business that includes UberEats.
  • The nascent food delivery market in the region has tremendous potential for growth, analysts told CNBC.
  • But in relatively mature markets like the United States and Western Europe, predatory pricing and cutthroat competition are limiting profitability.

Ride-hailing company Grab is betting on its growing food delivery business to drive growth and profitability in the long term, a senior executive at the company told CNBC.

"We've seen tremendous growth in our food business," Kell Jay Lim, co-chief of staff to the CEO and regional head of GrabFood, told CNBC. "We did have pockets of food delivery businesses throughout Southeast Asia already, but not across the region."

Grab's food business started in 2016, but expanded broadly across Southeast Asia last year after the start-up acquired Uber's regional operations that included UberEats. The service was available in two Indonesian cities at the start of 2018 but is currently present in more than 200 cities mostly across Indonesia , and also in Thailand, Malaysia, Singapore , Philippines, and Vietnam.

The company says its gross merchandise volume for the food business grew 900% on-year in June 2019 from a relatively small base. GMV is a commonly tracked metric by e-commerce companies that measures the total sales dollar value of goods sold on their platforms.

For the same period, delivery volume grew seven times, according to Grab. Overall, GrabFood accounts for around 20% of Grab's total GMV at the moment, compared to less than 5% in 2018.

Lim explained that the "room for growth is still tremendous" in Southeast Asia, where food delivery is still at a nascent stage compared to markets such as China and the United States .

We have over 200,000 merchants on our platform across the region, we want to show the relevant ones to the relevant people. Kell Jay Lim Regional Head, GrabFood

Performances of food delivery companies are tracked by various measures including profitability, GMVs, the total number of merchants on their platforms, order volumes, app downloads, and the so-called rider utilization rate, which refers to the total number of orders a ride can deliver in an hour.

Grab declined to disclose some of those numbers, but Lim said the company monitors its rider utilization rate "very, very closely because that is a very key metric in terms of profitability." He added that the company is investing in products that will help Grab drive up its rider utilization rate and make operations more efficient.

Going mainstream in Southeast Asia

Food delivery is not a new concept — what's changed is the way it's now being done. Previously, customers used to call restaurants directly to place their orders. Now, all of that is carried out on a mobile app or online, with a variety of choices available.

In Southeast Asia, food delivery apps have gone mainstream in a relatively short time, and those companies operate based on speed, convenience, and choice, according to Chandan Joshi, global emerging markets leader for consumer industries at EY.

Those apps were previously used by 10% to 20% of the population in urban cities across the region. They are now being used by more than 50% of the population, according to Joshi who said that indicates there's much more room for growth in the market.

We do see that the food industry has better margins than ride-hailing (and) we believe that the food business is going to really fuel our growth and get us to profitability in the long run. Kell Jay Lim Regional Head, GrabFood

Having a variety of food merchants on its platform and using data analytics and artificial intelligence to personalize restaurant recommendations in different markets are important considerations for Grab, Lim said.

"Based on what your order behavior was, we then show the relevant merchants," he added. "We have over 200,000 merchants on our platform across the region, we want to show the relevant ones to the relevant people."

Grab declined to disclose the aggregate number of orders that are placed on its app. But, the company said, it processes around 300,000 daily orders in Vietnam, and about four million orders were placed in Thailand between January and April this year.

Indonesian start-up Gojek — which competes with Grab in ride-hailing, food delivery, and payments — told CNBC that in the last eight months, the size of its food business across the region has doubled. The company claims it is "servicing more than 50 million orders a month" from 400,000 merchants in three countries.

Path to profitability

Swiss investment bank UBS predicted in June last year that the global online food delivery market could grow more than tenfold in the next decade — from $35 billion in 2018 to around $365 billion by 2030. The report said that more home-cooked meals will be replaced by deliveries from restaurants or central kitchens.

"Food delivery is becoming a replacement for food that is cooked at home," said EY's Joshi.

For its part, GrabFood's Southeast Asia rivals include Gojek, as well as established players such as Foodpanda and U.K.-based Deliveroo, which have been around for around 6 years or longer. To be clear, competition varies across different markets in Southeast Asia — for example, Indonesia is a big battleground for Grab and Gojek.

"You suddenly have a real food delivery fight on your hands. Understandably so, because food has a ton of money to be made. The margins are pretty high," Florian Hoppe, who co-leads Bain & Company's digital practice in Asia Pacific, told CNBC. He explained that the marginal cost of delivering — for example, one extra pizza — is minimal for a restaurant since the kitchen is already running. That allows food delivery companies to potentially structure a deal that gives them more commissions and better margins.

I don't think it's a winner-takes-all because it's way too big for that. I think the models will start to differ quite a bit. Florian Hoppe Bain & Company

GrabFood's Lim agreed. "We do see that the food industry has better margins than ride-hailing," he said. "We believe that the food business is going to really fuel our growth and get us to profitability in the long run."

However, many of these food delivery companies are not as established yet despite their longstanding presence in the region, according to EY's Joshi. That's because the market is still growing, and that leaves room for other players to compete for market share. It explains why there's massive interest from venture capital firms that are pumping in huge amounts of money into the space, he added.

Cutthroat competition

Mature food delivery markets in the United States and across Western Europe paint a grim picture of cutthroat competition between companies, which in turn hinders their overall profitability.

Predatory pricing is used widely to drive out the competition and firms often take on losses to offer deals and discounts, Sarwant Singh, head of mobility and visionary innovation group at Frost & Sullivan, wrote in a recent op-ed .

As a result of slashing prices, food delivery companies struggle to make profits due to high rates of cash burn — despite massive revenues and investment, Singh wrote. That's driven some of them to shut down their business while others are merging to take on the competition.

In Southeast Asia, the market is at an early stage of development since most of the region's retail spending is still being done offline. Companies have more room to carve out market share at the moment instead of relying on lowering prices to stay ahead.

Still, start-ups such as Grab and Gojek have an advantage over food delivery-only players. That's because they have multiple sources of revenue in other areas such as transportation, logistics and payments.

Localization strategies play a big part in helping companies dominate each market too.

A common practice gaining traction is the concept of cloud kitchens — or shared kitchen spaces — that are being set up by delivery companies. Restaurants can lease additional space at a relatively low cost in one of the cloud kitchens to fulfill an influx of orders received through delivery apps. For its part, Grab said it currently has 10 cloud kitchens in Indonesia, with plans to build more in the country and across the region by the end of the year.

Southeast Asia has a large population of more than 600 million people and a growing middle class that's coming online. The total retail spend in the region is about $600 billion, of which more than half — or $350 billion — is spent on groceries and food, according to Bain's Hoppe.

Unlike ride-hailing, where the region has two dominant players in Grab and Gojek, the food delivery space is still evolving. "What shape it finally takes is hard to predict," Hoppe said. "But, I don't think it's a winner-takes-all because it's way too big for that. I think the models will start to differ quite a bit."

comscore

Prepackaged salads on shelf

  • Trends & Insights

How to Build a Grab-and-Go Restaurant Menu

Restaurant grab-and-go pantries are a perfect way to grow customer visits and loyalty while introducing another income stream for a restaurant.

Before building out a grab-and-go menu, take some time to reflect on who will purchase from the pantry, and what you might offer. Taking the time to plan a grab-and-go pantry that makes sense for both your brand and your customers will save money and wasted product.

  • Consider your target audience: What types of food are your customers most interested in? For example, a grab-and-go menu at a coffee shop might focus on pastries and sandwiches, while a grab-and-go menu at a pizzeria might include calzones and cold cuts.
  • Offer a variety of savory and sweet options: Include a range of options that will appeal to different tastes. Note items for dietary restrictions that will appeal to vegetarians, vegans, and people with nut or gluten allergies.
  • Keep it simple: The goal of a grab-and-go menu is to offer convenient, quick meals, so try to keep the menu as simple as possible. Stick to a few key items that can be easily prepared in advance and quickly packaged for takeaway. Include a prepared on/best by date on package to build consumer trust.
  • Make it visually appealing: The packaging and presentation of grab-and-go items is important, as it can influence a customer’s decision to purchase. Use attractive, clear-top packaging and showcase colorful, fresh items.
  • Price items appropriately: The pricing of grab-and-go items should be competitive with similar items offered by other restaurants or nearby shops. Factor in the cost of ingredients, labor, and packaging when setting your prices.
  • Make payment easy: The idea is convenience, so have a dedicated cashier or an area to swipe-to-pay quickly.
  • Promote your offering: Depending on where you’ve placed your grab-and-go area, not every customer may see it. Place signage on tables and at the counter reminding guests about the grab-and-go option. Post photos of grab-and-go offerings on social media to drum up additional interest.

When thinking about which food and beverage items to include in your grab-and-go area, consider the ideas below, keeping in mind your target audience and individual brand for each.

  • Sandwiches and wraps: Premade sandwiches and wraps can be a convenient option for customers on the go. Offer a variety of protein options, such as turkey, chicken, roast beef, and vegetarian options like plant-based meat, hummus, or avocado.
  • Salads: Packaged salads can be a healthy grab-and-go option. Offer a range of greens, such as mixed greens, spinach, and kale, and add a variety of toppings such as nuts, seeds, and dried fruit.
  • Snacks: Individual-sized bags of chips, crackers, meats, cheeses, and nuts can be convenient for customers looking for a quick, protein-packed snack. Small charcuterie platters are great, too.
  • Desserts: Packaged cookies, pastries, and other sweet treats are a popular grab-and-go item. Fresh, seasonal, colorful fruit cups are a popular choice, too.
  • Beverages: Offer a selection of bottled, mixed, or canned beverages, including water, soda, coffee, smoothies, juices, lemonade, and tea.
  • Soups: Prepackaged soup is a convenient grab-and-go option for customers looking for a quick, warming meal.
  • Frozen meals: Offer a selection of frozen meals that can be easily reheated at home, such as burritos, pizzas, and family-size pasta and casserole dishes.

Ultimately, choosing to introduce grab-and-go menu items inside a restaurant is a process of trial and error. You may find that customers enjoy a wide range of snacks more than breakfast or dinner options. Monitor your sell-through closely and you can pivot as necessary.

The information provided is based on a general industry overview, and is not specific to your business operation. Each business is unique and decisions related to your business should be made after consultation with appropriate experts.

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grab food business plan

Grab-and-Go Beverages Satisfy Snackers

Beverages are popular snack items—especially at midmorning and midafternoon. Try adding specialty coffees, juices, iced coffees, and chai to your grab-and-go snack program for extra sales.

The Strategy Story

Grab Business Model: Driving Southeast Asia Forward

Undoubtedly the United States has been the pioneer in technology startups, but Southeast Asia was quick to learn and implement. Moreover, global investors are looking to invest in diverse markets. Many are keeping an eye on Southeast Asian countries (ASEAN). 

As per Invest ASEAN, ASEAN’s market of more than 600 million people is 9% of the world’s total population. The combined income per capita in the region for the past six years has been rising and reached an average of US$3,600 as of 2011. Singapore has the highest GDP per capita at over US$50,000, followed by Brunei at US$39,000.

According to Jungle Ventures, Southeast Asia’s technology startups had a combined valuation of $340 billion in 2020, and they anticipate this will triple by 2025 . Factors such as growing middle class, high literacy, and exponentially rising startup ecosystem have attracted the interest of founders and investors.

One such technology startup Grab, founded in 2012 by Anthony Tan (while he was in Harvard Business School) and Tan Hooi Ling, is the developer of the Grab super-app, which provides users with transportation, food delivery, and digital payments services via a mobile app.

Grab currently operates in Singapore, Malaysia, Cambodia, Indonesia, Myanmar, the Philippines, Thailand, and Vietnam. It is Southeast Asia’s first decacorn and the biggest technology startup in the region. In April 2021, Grab went public at a valuation of $40 bn through a SPAC deal but had so far failed to deliver to shareholders (down 80% since then).

Nevertheless, it’s interesting to know how ASEAN’s biggest technology startup, Grab, started and its business model.

What is Grab, and How did it all start?

Grab was founded in 2012 when transportation in most Southeast Asian cities was generally neither accessible nor safe for many. Hooi Ling, one of the co-founders, used to take taxis home after a late night of work.

She would often call her family and friends for a sense of security. Anthony Tan and Hooi Ling set out to create a mobility solution that would make it safe and easy for anyone to commute in the ASEAN region.

Starting with the taxi business, Grab’s business model has now become a Super App concept that enables millions of people each day to access driver- and merchant-partners to order food or groceries, send packages, hail a ride or taxi, pay for online purchases, or access services such as lending, insurance, wealth management, and telemedicine.

The following graphic summarizes the scale of Grab’s business model.

grab business model

Key Thematic Drivers for Grab’s Industry in Southeast Asia

  • Rapid urbanization is driven by macroeconomic and demographic growth.
  • Mobile-first population with increasing digital engagement.
  • The increasing digitalization of services and consumption.
  • Regulatory landscape supportive of technology and digital advancement.
  • Large unbanked and underserved population.

How does Uber work & make money | Business Model

What is the business model of Grab?

Value proposition.

Customers : More offerings and partners on Grab drive more incredible selection, better value, more bookings, and faster delivery times. Focus on providing a broad range of key offerings contributes to the resilience of Grab’s business model.

Driver Partners : Ability to earn a sustainable living, flexibility to work, access to Grab’s financial services, and ability to manage workflows are some of the key value propositions of Grab for its  5 Million  (as of 2020) driver community.

Merchant Partners : Grab has 4 million (as of 2020) merchant partners, ranging from small restaurants, convenience, and grocery stores, to multinational franchises and lifestyle service providers. These merchants can access Millions of Grab’s users to sell their services while being empowered to manage their advertisements and track performance.

View this post on Instagram A post shared by Grab Singapore (@grab_sg)

Deliveries : Grab’s delivery platform connects drivers and merchant partners with consumers to create a local logistics platform, facilitating on-demand and scheduled delivery of a wide variety of daily necessities, including in selected markets, ready-to-eat meals, and groceries, as well as point-to-point package delivery.

Mobility : Grab offers to connect driver-partners with consumers seeking rides across a wide variety of multi-modal mobility options, including private cars, taxis, motorcycles in certain countries, and shared mobility options such as carpooling in selected markets.

Financial Services : Grab’s financial services offerings include digital solutions to address the financial needs of the driver- and merchant-partners and consumers, including digital payments, lending, receivables factoring, insurance distribution, and wealth management in selected markets.

Enterprise and New Initiatives : Grab has a suite of enterprise offerings, including advertising and marketing offerings, GrabAds, and anti-fraud offerings, GrabDefence.

In addition, Grab’s partners offer other lifestyle services to consumers through its super app, including domestic and home services, flights, hotel bookings, subscriptions, and more in certain countries.

Grab generated  $675 Mn in FY2021 , 44% higher than FY2020. Grab primarily generates revenue through 4 streams.

  • Mobility : Grab makes money from driver-partners and consumers by connecting consumers with transportation rides provided by driver-partners across various multi-modal mobility options. In FY21, the mobility segment contributed 22% to the revenue.
  • Deliveries : Grab makes money from driver-partners, merchant-partners, and consumers by connecting driver-partners and merchant-partners with consumers to facilitate deliveries, including prepared meals and groceries, as well as point-to-point parcel delivery. In FY21, the deliveries segment contributed 68% to the revenue.
  • Financial Services : Grab earns fees from digital payment processing services charged to merchant partners primarily based on the total payments volume (“TPV”) processed through its platform. TPV is the value of payments, net of payment reversals, successfully completed through Grab’s platform. . In FY21, the financial services segment contributed 4% to the revenue.
  • Enterprise & New initiatives : Grab earns fees from enterprise offerings predominantly from digital advertising and marketing services. In FY21, the enterprise segment contributed 6% to the revenue.

grab business model

How does Shopify make money | Business Model

Grab started by providing a platform addressing the mobility opportunity in Southeast Asia. Grab has since expanded its platform to manage food and other deliveries and e-wallet opportunities.

As Grab continues to expand its business model and increase the breadth of its offerings over time, it increases its addressable market. Grab believes there is an enormous opportunity to help millions of small businesses in ASEAN that are operating in an informal economy to navigate an increasingly digital world.

Grab wishes to leverage its existing reach with its driver- and merchant partners to provide digital tools and train critical to thriving in the increasingly digital economy, helping lay the foundations for more inclusive growth across the region.

With Grab’s scale, ecosystem, and platform advantages, it seems well-positioned to navigate the complexity of Southeast Asia and address certain vital challenges in the region.

grab food business plan

A passionate writer and a business enthusiast having 6 years of industry experience in a variety of industries and functions. I just love telling stories and share my learning. Connect with me on LinkedIn. Let's chat...

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grab-business-model

How Does Grab Make Money? The Grab Business Model In A Nutshell

  • Grab is a Singaporean food delivery, transportation, and digital services company founded in 2012 by Anthony Tan and Tan Hooi Ling. Tan was inspired to create the platform to revitalize the Malaysian taxi industry . 
  • The Grab app has been compared to WeChat and Alipay for its versatility and diverse product offering. Grab takes a 16-25% commission for every ride it facilitates and charges delivery fees across its food, courier, and home shopping services.
  • Grab charges premiums to individuals and driver-partners who desire insurance cover. The company also collects a fee every time a consumer purchases from a merchant using GrabPay.

Table of Contents

Origin Story

Grab is a Singaporean food delivery, transportation, and digital services company founded in 2012 by Anthony Tan and Tan Hooi Ling.

Tan first had the idea for a taxi-booking mobile app in Southeast Asia while studying at Harvard Business School.

At the time, the Malaysian taxi industry had a poor reputation. Customers were frequently overcharged by drivers and the security of women using taxis was a significant concern.

Grab began as the MyTeksi app in Malaysia after Tan partnered with fellow Harvard graduate Tan Hooi Ling. The app was funded with a $25,000 grant from Harvard Business School and Tan’s personal capital.

Two years later, the company headquarters shifted from Malaysia to Singapore. There, the company invested in a fleet of 100 fully electric taxis, becoming the largest such fleet in Southeast Asia.

As the company continued to expand, Tan maintained a focus on improving the safety of women passengers in particular.

Every Grab driver was interviewed personally before they were recruited, a process Tan admitted was exhaustive but non-negotiable.

Within seven years, Grab’s ride-hailing service could be found in eight countries across Southeast Asia. In 2018, the company momentously acquired rival Uber ’s entire presence in the region.

Users can now hail a range of transportation options in addition to taxis, including private vehicles, bicycles, shuttle services, bike taxis, and car-pooling. 

The app then followed a similar model to so-called “super apps” such as Alipay and Wechat, offering additional services like hotel booking, ticket purchasing, food delivery, grocery shopping, and on-demand video.

In recent years, Grab has also moved into fintech with a range of insurance and loan options available to small-medium enterprises.

In June 2021, Grab postponed a $40 billion IPO because of an intended merger with acquisition company Altimeter Growth Corp. First-quarter revenue for the same year totaled $216 million .

Grab revenue generation

Grab has an extensive revenue generation strategy , owing to its diverse range of products and services.

Without further ado, let’s dive into how the company makes its money.

Ridesharing

For each successful ride Grab facilitates, the company earns a commission of 16-25% of the total fare. 

The remainder of the fare is then distributed to the driver.

GrabFood and GrabMart

GrabFood is a food delivery service offered in more than 200 cities across the region. For the privilege of having their food delivered, Grab charges consumers a delivery fee. 

This fee depends on the time, area, and merchant processing the order.

Food can also be ordered and delivered from GrabMart, an on-demand delivery service for everyday items such as groceries, packaged food, and healthcare products. For GrabMart customers, there is also a delivery fee.

GrabAds enables business owners to connect with millions of online and offline customers. The advertising service can be used to drive store traffic, boost sales, attract new customers, or promote a product .

Here, the company offers typical website advertising in the form of banners and masthead.

Alternatively, a business can also utilize the Grab taxi fleet for car wrap advertising or branding and sampling purposes. Prices are available on request and are tailored to each advertiser.

GrabExpress

GrabExpress is a courier service available to consumers for any purpose, whether that be sending a birthday gift to a friend or having an urgent document signed and sent back.

There are several GrabExpress delivery options, depending on the size of the package and how urgently it needs to be delivered.

Here, the company charges a base fare plus a fee for every kilometer the courier travels. There is also an additional fee for multiple-stop deliveries and return trips.

Grab also offers insurance to individuals and rideshare drivers. Currently, the company offers travel insurance and ride cover insurance to individuals, with the latter protecting against late pickups and car accidents.

For rideshare drivers, insurance also provides accident cover, excess cover, and income protection for earnings lost because of prolonged sickness.

Again, prices are tailored to the individual and for drivers, policy rates are determined by their Grab driver-partner rating.

Like many similar platforms, Grab offers payment facilitation services using a digital wallet.

GrabPay can be used for in-store purchases, rides, food deliveries, and funds transfers.

For merchants that want to accept GrabPay as a form of payment, the company charges a so-called Merchant Discount Rate (MDR) for every transaction processed through their unique QR code.

Exact MDR figures are not disclosed. However, most fees are typically between 1.2-2.9%.

Key highlights

  • Founding and Purpose : Grab is a Singaporean company founded in 2012 by Anthony Tan and Tan Hooi Ling. It started as a taxi-booking app called MyTeksi, aiming to revitalize the Malaysian taxi industry by addressing safety and pricing concerns.
  • Diverse Product Offering : Grab’s app is known for its versatility and wide range of services, often compared to super apps like WeChat and Alipay. It offers services beyond ride-hailing, including food delivery, courier services, home shopping, digital payments, and more.
  • Expansion and Acquisitions : Starting in Malaysia, Grab expanded its services across Southeast Asia. It invested in electric taxis and prioritized safety for women passengers. In 2018, Grab acquired Uber ’s operations in Southeast Asia, solidifying its presence in the region.
  • Super App Model : Grab evolved into a super app, offering various services within a single platform, such as ride-hailing, food delivery, grocery shopping, hotel booking, ticket purchasing, and more.
  • Fintech Ventures : Grab ventured into fintech by offering insurance and loan options to small-medium enterprises, diversifying its revenue streams.
  • Ridesharing : Grab earns a commission of 16-25% for every successful ride it facilitates.
  • GrabFood and GrabMart : Grab charges consumers a delivery fee for its food delivery service (GrabFood) and on-demand delivery service for everyday items (GrabMart).
  • GrabAds : Businesses can use GrabAds for advertising through banners, mastheads, car wrap advertising, and more.
  • GrabExpress : Grab’s courier service charges a base fare and per-kilometer fee for deliveries.
  • GrabInsure : Grab offers insurance to individuals and rideshare drivers, covering various scenarios such as accidents and late pickups.
  • GrabPay : Grab’s digital wallet facilitates in-store purchases, rides, food deliveries, and funds transfers. Merchants accepting GrabPay pay a Merchant Discount Rate (MDR) for transactions.
  • Business Model : Grab’s revenue comes from a combination of commissions, fees, and charges across its diverse services. It aims to provide convenience and value to both consumers and businesses.

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How Grab works: The on-demand business model

Grab ride-sharing is a renowned on-demand business model that leads Southeast Asia’s mobility platform. Grab in Asia actively offers food delivery services, ride-sharing services , and ride-booking services for taxis, bikes, carpooling, shuttle services via a single super-app .

In just four years after its launch as GrabTaxi in 2012, the car-hailing, ride-sharing, and food delivery business has grown to be Southeast Asia’s most popular.

Grab Business Model

Grab purchased Uber’s Southeast Asian business in March 2018, establishing it as one of the region’s most popular cab-hailing applications. For 2020, Grab has announced a 70% rise in revenue run rate.

Grab’s business model is extremely straightforward. In tiny firms, physical assets and drivers are rare. Grab’s technology connects passengers in need of a trip with drivers willing to take them, and Grab will eventually receive a share of the fees. Grab has 187 million users worldwide. It earns money from a variety of sources, including driver and restaurant commissions, payment processing fees, platform advertising, referral fees, and more. Its business plan is based on creating a super app that can meet practically any customer’s daily needs.

Grab presently offers a variety of products, including:

  • GrabRides is a ride-hailing app that lets users book taxis and other types of vehicles on demand.
  • GrabFood is a restaurant-style food delivery service.
  • GrabMart is an app that allows users to order groceries.
  • GrabPay is a digital wallet that allows users to make real-world purchases.
  • GrabInsure is a company that provides insurance for your vacations and rides.
  • GrabFinance , a company that gives drivers loans and customers ‘buy now, pay later’ options… and a few others.

It’s worth noting that Grab frequently tests new products within the app to see what sticks.

Table of Contents:

Grab Business Model Canvas Explained

Key segments in grab ride sharing model, grab taxi business and revenue model , grab revenue insights- how does it make money, why is grab so successful, the future is all about the on-demand business model, launch your grab clone app now.

To get a clear idea about the business model, let us discuss its various aspects in detail. 

Grab follows a light asset business model that enables customers to book a ride with the people willing to offer their ride services. Once the ride is completed, Grab takes a pre-decided cut from the fare. 

Grab Asia is one of the leading on-demand apps from where you can hire anything on wheels. More than 6 million rides are being carried out daily, and around 2.8 million drivers are associated with the brand. The company earns revenue comes from multiple services like hotel booking services, food ordering platforms , grocery shopping, trip planning, and many more. 

grab business model- Jugnoo

Here is the list of core partners, that works together.

  • Drivers – Pillar for supply-side
  • Customers – Pillar for demand-side
  • Investors – Pillar for investment 

Grab Asia follows the revenue model to take a commission out from the rider’s fare. Here is a detailed process to explain how Grab Taxi Business models generate revenue. 

Segment: Customers

As an integral part of the on-demand taxi business, Grab revenue is much dependent upon the riders. Riders get an instant pick-up within a few minutes after they successfully book a ride via an app.

While initiating the booking process, a rider can check for the fixed fare. It helps in adding transparency to the riders about fares. As soon as the ride is completed, a rider has the full freedom to leave feedback. 

Segment: Drivers

On-board drivers can earn a decent amount by getting on board. The flexible working hours and easy accessibility to passengers’ search make it convenient for them to monetize their assets and time. This easy-to-work business model explains why Grab Asia can grow with around 3.5 Million drivers until now. 

There are three major categories for drivers: 

1. Silver: A driver needs to complete 60 rides per month, and he becomes eligible for coupons for car maintenance services.

2. Gold: A driver needs to complete 150 rides per month, and he becomes eligible for lifestyle coupons and vouchers.

3. Platinum : A driver needs to complete 300 rides per month, and he becomes eligible for medical health benefits. 

Grab business model- Jugnoo

Grab Asia works on the commission model. It takes around 16% to 25% of commission as their service charges. An average cut of 25% per ride makes it convenient for the company to earn approximately 4 million in revenue per year with every ride confirmation. 

The company refrains itself from offering any discounts or free coupons for rides, making it earn a minimum of $418 commission from each driver. There is a referral bonus scheme ($24 per referral) that encourages drivers to build a network. 

Let’s take a closer look at all the ways through which Grab makes money.

Grab’s Rides section offers a wide range of transportation options. Here are several examples:

  • JustGrab is a service that allows you to hire the nearest taxi or automobile.
  • GrabHitch allows users to carpool with other users and save up to 40%.
  • GrabBike is a motorcycle-based ride-sharing service.
  • GrabFamily : vehicles with added safety features.
  • GrabPet is a ride service that allows you to transfer your pets .

grab business model- Jugnoo

Driving partners are employed on a contract basis, which means they can work whenever they want. Grab has created a separate app for its drivers that allows them to track their hours.

This also implies that drivers are responsible for their own fuel, insurance, and necessary repairs. Grab, on the other hand, has partnered with other businesses to help its drivers. For example, its 2018 agreement with Toyota lets drivers from the Philippines get low-interest loans to modify their vehicles. Grab then makes money by deducting a percentage of the total fare, which is usually approximately 20%. If a ride costs $10, for example, Grab gets to retain $2.

GrabFood allows customers to order food from nearby restaurants. Grab collaborates with drivers who pick up food from restaurants and deliver it to customers’ homes.

grab business model- Jugnoo

Customers pay a delivery fee in exchange for this service. The final bill is determined by the distance between the restaurant and the customer’s residence. Customers can tip drivers, just like they can with GrabRides (100 percent of the tip will go to the driver). Grab generates money from its food delivery service by taking a share of the revenue from restaurants (called service fees). The service cost is usually between 25% and 30% of the total.

Grab started a cloud kitchen business (named GrabKitchen) in 2019 in addition to working with restaurants. These cloud kitchens are run in collaboration with well-known restauranteurs.

Because Grab provides the kitchen infrastructure, the percentage cut it takes from the partner is likely to be slightly greater.

Users can order groceries and beverages from various supermarkets and kiosks, similar to GrabFood.

Packaged foods (such as bread or cookies), beverages (juices, milk), healthcare products (medicine, sanitizer), personal care (such as shampoo), housekeeping products (detergents or dishwashing solutions), and presents are among the items available (such as books or flowers).

grab business model- Jugnoo

Grab generates money from the service by collecting a cut from the stores with which it collaborates. However, when compared to GrabFood and GrabRides, that cut is likely to be significantly lower. This is due to the fact that margins in the FMCG industry are often substantially smaller.

Furthermore, GrabMart’s pricing is almost certainly higher than those in the shop. As a result, product margins tend to be greater.

GrabExpress

Apart from people and food, Grab users can have stuff transported via the platform’s riders.

Users can utilize GrabExpress to mail letters to another address nearby, for example. Motorbikes or vehicles are used to transport objects , depending on their size.

Packages are also insured (up to SGD 500 in Singapore) and may be traced in real-time during delivery.

Grab, like GrabRides, deducts a percentage from the total fare. The fees are quite comparable to those charged by a ride-hailing service.

GrabPay is a mobile wallet that lets users pay for goods and services both inside the Grab app ecosystem and at select in-store retailers.

When it comes to maintaining Grab’s position as Southeast Asia’s leading super app , its payment division is undoubtedly its most significant commercial segment.

grab business model- Jugnoo

Many of its direct and indirect competitors, such as Go-Jek , Lazada, and Shopee, have entered the high-margin payments market by launching their own wallets.

GrabPay currently generates a large amount of money for the company. To begin, merchants who use GrabPay pay a small charge for each transaction (around 1 percent).

In addition, Grab has partnered with Mastercard to create its own physical debit cards. When you pay with a debit or credit card, you’ll be charged an interchange fee. Grab and Mastercard, as the card’s issuer, will most likely split the cost between themselves.

Grab has also introduced a ‘buy now, pay later’ service, which allows customers to pay for items in four installments. While the service is free, clients will be charged a penalty fee (about 4%) if they do not pay an installment on time.

Have you ever wondered what makes the company conquer Southeast Asia in such a short period? The wise three vital elements on which the Grab ride-sharing platform focus make it understood why it is in high demand. 

  • Successfully meeting the local requirements
  • Taking an active part in resolving the transport issues at the local level
  • Easy access to the hyperlocal businesses 

And rest is history for the company.  

grab business model- Jugnoo

Touted as a super app model, Grab Asia is a front-line player in the consumer demand market. In the coming times, the on-demand taxi business model is ready to conquer the hyperlocal marketplace industry .

The battle for supremacy for the Super app is on, and the on-demand ride-sharing platform is all set to fix a consumer industry’s fixed position. The one-stop platform has already been tough competition in SEA and is on its way to entering the global market.

Do you have a plan to start your on-demand business model with a super-app? Connect with Team Jugnoo to launch your Grab Clone. 

We have a talented team of designers and engineers at Jugnoo that are pioneering the development of on-demand apps like Grab. We can provide end-to-end help, from strategic design to app launch, because we have a comprehensive development team.

Interested? Share your requirements with us and get started today!

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grab food business plan

Build your menu or catalogue (and your business)

grab food business plan

No guesses as to what your most powerful marketing tool is. Your GrabFood menu or Mart catalogue is a free marketing tool that promotes your food and products to customers. Through the  GrabMerchant App and  Portal , we will help you create a menu or catalogue that will attract customers and make them want to order from you. 

grab food business plan

Create a menu category, item and option group in the  GrabMerchant App

Managing your menu in the GrabMerchant Portal  

Build your menu or catalogue (and your business)

Click on  Menu or  Catalogue , followed by  Menu Overview to add, change or delete categories or items.

Ready to discover the functions in your Menu or Catalogue?

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09 Mar The Technology to Power Effective Grab-and-Go Restaurants

The restaurant industry is evolving. Once people waited in line, now they enjoy the perks of digital ordering, including tableside food ordering and payment processing . Still, the industry needs more technology and a better way to engage with customers. And those needs will mount as recovery from the pandemic continues, putting restaurant growth at risk. Consider this. According to The Food Institute , “ 2% of restaurants reported an increase in sales in December. Yet, a survey by TD Bank found 81% of restaurant operators are nevertheless optimistic about the future.

Restaurant operators are faced with several challenges going into the third year of the pandemic. The costs of food and labor are increasing, of course, and restaurants are finding it difficult to fill positions, forcing them to cut hours, while local governments still are dictating how many people can be served indoors at once.” 

Further, the “global online food delivery market reached a value of $106.1 Billion in 2021” and will register a CAGR of 11.44% through 2027,” reports Research and Markets . As a result, restaurateurs need to know a few things about grab-and-go capabilities and how they empower the grab-and-go restaurant business plan. 

What Is a Grab-and-Go Restaurant ?

A grab-and-go restaurant is a type of foodservice establishment that offers prepared meals that can be easily grabbed and taken on the go. These restaurants typically have a limited menu and focus on items that can be quickly prepared, such as sandwiches, salads, and snacks. The grab-and-go fare is an excellent way to test new concepts and offer more delivery or pickup services.

What Type of Technology Enables a Grab-and-Go Restaurant Business Plan ?

A grab-and-go restaurant business plan needs to include discussing the technology required to make the business run efficiently. The scope of this technology  might consist of point-of-sale software, online ordering platforms, or delivery apps. These tools can help streamline operations and make it easier for customers to order and get their food.

It’s also essential to have a robust inventory management system in place. Doing so will help you keep track of what items are selling the best and make sure you always have enough of the most popular items in stock. A sound inventory system can also help you save money by preventing you from ordering too much of any one ingredient. But that’s not all. 

A grab-and-go restaurant needs technology that can help automate the ordering and food delivery process.

Also, in this context, delivery doesn’t necessarily mean home delivery. It could include mobile order-ahead and pickup from a restaurant locker, curbside service, or counter pickups. It’s all subject to the specific needs of the restaurant. As a result, the grab-and-go business plan should spell out the process for improving workflows and include technologies like self-service kiosks, online ordering, and mobile apps. These technologies can help reduce the time it takes to order and receive food, which is essential for a grab-and-go restaurant since customers often hurry.

Another important technology for a grab-and-go restaurant is an integrated point-of-sale system. This system can help track orders, manage inventory, and process payments. A point-of-sale system can also help restaurants manage their business operations more effectively.

For example, analytics within the POS can be a valuable tool for tracking laborers, understanding customer buying habits, and engaging with such customers through more meaningful content. This is especially true in an age where loyalty programs are equivalent to superior customer experiences. 

In addition to the aforementioned technologies, digital, contactless payment processing is another important technology for a grab-and-go restaurant. This technology allows customers to pay for their food without swiping or inserting a card into a payment terminal. Instead, they can wave their card or phone near the payment terminal to complete the payment.

This type of payment processing is becoming more and more popular, as it is fast and convenient. It is also more secure than traditional payment methods, reducing the risk of fraud.

Digital, contactless payment processing can be implemented in a grab-and-go restaurant through various methods, such as point-of-sale terminals that accept contactless payments and mobile apps. 

Choose Tacit to Power Your Grab-and-Go Restaurant Business Through Integrated Systems

A grab-and-go restaurant needs a technology partner to enable a practical grab-and-go experience for customers. The technology partner must provide an integrated solution to manage the ordering, payment, and fulfillment processes. The grab-and-go restaurant can ensure customers’ smooth and efficient experience by integrating with the technology partner.

The technology partner also provides valuable insights and analytics that help the grab-and-go restaurant improve its operations. For example, the technology partner can provide data on items ordered most often and abandoned. This data can help the restaurant decide what products to stock and how to optimize its menu.Overall, the technology partner should have a thorough understanding of the industry, its trends, and what’s needed to achieve growth as ordering rates begin to subside through the COVID-19 recovery period. Connect with Tacit to get started today.

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Deli Business

The Grab-and-Go Phenomenon

Ready-to-eat items have expanded the reach of today’s deli departments..

grab food business plan

The grab-and-go segment has evolved over the years. As a result, supermarket delis are more diverse and have become more competitive with today’s restaurants.

Its higher-end offerings providing convenient and fast pick up include everything from charcuterie platters to prepared food and everything in between that not only entice shoppers for meals and snacks, but also for entertaining.

According to the Madison, WI-based International Dairy Deli Bakery Association ( IDDBA ), grab-and-go deli meat sales growth topped 50.7% for the year ending Jan. 25, 2021.

“The grab-and-go segment is made up of items that offer convenient, portable solutions for consumers as they look to purchase smaller portion sizes either to take on the go or for better portion control at home,” says Ben Sutkiewicz, associate brand manager, Sabra Dipping Co., White Plains, NY. “More recently, trends in the segment have been leaning towards functional foods, meaning they provide a benefit to the consumer, i.e., protein for satiety, as consumers are looking for solutions that are quick and healthy. Additionally, many consumers are becoming more interested in incorporating plant-based eating into their diets, and it is having an impact on shopping choices.”

A Developing Segment

The grab-and-go segment continues to evolve and expand, as more products are thrown into the mix.

Yet, there are certain criteria for these lucrative items.

Also, with the rise of meal kits, the grab-and-go section in the supermarket deli has become even more significant.

“Supermarkets have a unique advantage for their convenience sections as they have unlimited access to fresh produce and homemade recipes, so the deli operators can curate a custom selection of locally-based snack options,” says Kali Kinziger, associate product manager, Placon , Fitchburg, WI. “Thinking of the deli department, there are numerous types of slaws, salads and pastas allowing the customer to have to choose from an assorted offering rather than one option.”

The fresh perimeter nature of snacking in the deli has the potential to attract a younger consumer base.

“We’ve witnessed a shifting mentality towards leveraging the deli grab-and-go to drive traffic and increase shopping occasions in the same way a c-store leverages healthy grab-and-go options to steal fast casual business with younger generations,” says Katie Baldwin, brand marketing manager, Atalanta Corp. , Elizabeth, NJ. “We’ve seen more interest in snacking cheeses in the past few years. The pandemic also shifted behaviors in this section, with less shoppers traveling, going to the office or school and, therefore, less eating on the go.”

In the supermarket deli department, the grab-and-go segment is different for every eating occasion.

“Regarding cheese, for snacking it is all about individually-wrapped packages; for sandwiches it is all about pre-sliced cheeses, and for entertaining, the grab-and-go segment is about being accessible,” says Debbie Seife, marketing manager, FrieslandCampina , The Netherlands. “All need to be in an easy to shop and display format.”

This segment also is often defined by location and packaging type.

“The same product—say, macaroni salad—could be available behind the glass in the deli case, on shelf in a 3-pound container and in a 10-ounce container next to the rotisserie chicken,” says Nathan Roe, senior manager, Deli Strategy & Shopper Marketing, Reser’s Fine Foods , Beaverton, OR. “Of these, we would consider the 10-ounce product part of the retailer’s grab-and-go offering. If that 10-ounce item is also shelved in a standard case, however, it could be considered a part of both segments.”

Where consumers are buying salads and side dishes has changed, with a shift away from the deli case and toward packaged versions of the same or similar recipes.

“It seems there are more options but no standard set,” says Roe. “Many retailers have developed significant grab-and-go sections within the deli, and some have been able to carve out territory near the checkout lanes or at the front of the store. The core grab-and-go items for salads and side dishes, however, are still the ones most-favored in the traditional locations—mashed potatoes, potato salad, macaroni and cheese, and chicken salad.”

The segment has grown to include more freshly-prepared items beyond snacks like chips, nuts and crackers.

“And while there has been a lot of innovation in bento-style boxes, consumers still enjoy cheese as a grab-and-go item paired with these freshly-prepared offerings,” says Kevin Rider, senior brand manager, Andrew & Everett , Mechanicsburg, PA.

This is because customers are looking for a well-balanced combination with grab-and-go items in the deli department.

“More and more we have seen the offering expand and move from the classic meat and cheese pairing to a more evolved combination of products to include dried fruit, nuts, jam, etc.,” says Simone Bocchini, COO and president at Fratelli Beretta USA , Inc., South Hackensack, NJ.

Historically, this category has included foods for immediate consumption, but that’s not the case currently.

“More of what we’re seeing is products developed for convenience, not only to eat in the near future, but food that can be eaten immediately,” says Matthew Sade, founder/CEO, Freeli Foods , Oakland, CA.

There are a number of new packaging innovations being developed for grab-and-go products.

“For us, the biggest push we see is on sustainable or recyclable packaging,” says Heather Iafrate, general manager, marketing, Norseland Inc. , U.S. distributor of Old Amsterdam, Stamford, CT.

Supermarkets now utilize traditional clear deli packaging to advertise and differentiate in-house grab-and-go offerings as ‘original’, ‘homemade’ and ‘artisan’ to grab the attention of shoppers within stores.

“Consumers demand transparency in every aspect of the purchase cycle, from food ingredients to an organization’s social responsibility. As product offerings grow, viewing products, along with labels, is paramount,” says Mary Klakulak-Sclafani, vice president of market innovation strategy, Genpak , Charlotte, NC. “The days of placing fresh food in packaging that obstructs consumers’ view is no longer acceptable.”

Staples & Launches

There are a number of staple grab-and-go items in delis, along with new launches to heighten visibility of this lucrative segment. Popular items include fresh dips paired with carriers, single servings of dips and compartmentalized snacking options, including meats, cheese, nuts, dried fruit, etc.

“Vinegar-based snacks like snacking olives or snacking pickles have garnered interest in the past few years,” says Baldwin at Atalanta. “This trend will likely continue, as interest in functional foods has grown and health and wellness remain top of mind.”

Sabra’s portfolio contains a number of products offering convenience and pre-portioned snacking. These include Classic and Roasted Red Pepper 2-ounce Hummus Singles as well as a variety of Hummus Snackers (Classic with Pretzels, Classic with Pita Chips, Roasted Red Pepper with Pretzels, Garlic with Pretzels, and Dark Chocolate Dip with Pretzels).

Sabra has introduced a few new items in the grab-and-go segment in the last year. Most notably, Sabra Kids Plant-Based Snack Kits, available in two varieties: Brownie Batter Dip with Graham Crackers and Taco Dip with Rolled Tortilla Chips.

Cheese snacks have been around but the snacking segment in the deli is expanding with new varieties, including imports.

FrieslandCampina has introduced Royal Hollandia, offering imported Gouda, Smoked Flavored Gouda and Chili Pepper from Holland.

A new category is also being launched called Entry Packs. The company has six varieties under Royal Hollandia and Parrano.

“We have launched an entire new size of cheese for the deli, ranging from 3.5 to 4 ounces,” says Seife. “This new entry point allows consumers to try cheeses in smaller sizes and at smaller price points.”

In terms of packaging innovations, FrieslandCampina is making its snack pouch from fully recyclable paper.

“The cheese sliced packages are a bottom tray with peel and resealable top film and offered in a shelf-ready package as well as peg holes for easy merchandising,” Seife says.

It’s important to note that the consumer attracted to grab-and-go items does not want to spend a lot of time in the section.

“For deli salads, potato, macaroni and chicken salads are the most popular varieties in all sizes, and for most occasions,” says Reser’s Roe. “The deli case contains more pasta salads than the packaged set, and we are seeing more options from that segment gain traction. As for side dishes, we have seen a rise in meal deals and value bundles that include a protein and a side or sides. This part of the grab-and-go segment has been around for years, and many retailers have used this concept to anchor programs with more options to keep shoppers in the store (and in the deli) rather than returning to restaurant dining.”

The company recently launched a single, 3.5-ounce portion of its Garden Pasta salad in response to increasing demand for single-serving sizes. The ready-to-eat salad is made with mini penne pasta, red bell pepper, sun-dried tomatoes and shredded cheeses in a zesty vinaigrette dressing, with no artificial flavors or colors.

Norseland has introduced Old Amsterdam Aged Gouda bites in 12.7-ounce bags. The all-natural cheese bites are made of 100% Old Amsterdam Gouda Cheese with a smooth, rich flavor.

Andrew & Everett’s grab-and-go offerings include Cheese Snack Bars and Cheese Sticks & String Cheese in a variety of flavors like Sharp Cheddar, Pepper Jack, Colby Jack and Mozzarella.

The company’s 2-ounce Cheese Snack Bar for larger portion size snacking is a line extension from its 1-ounce Snack Sticks. Andrew & Everett’s 1-ounce Cheese Snack Sticks & String Cheese and 2-ounce Cheese Snack Bars are available in display-ready caddies, which take up limited shelf space.

Fratelli Beretta USA offers a grab-and-go product line featuring small trays from 2.5 to 3.5 ounces in total weight. It has 27 different varieties of products in this category.

Adding convenience to popular products also has helped expand the supermarket deli grab-and-go space.

“If we can take ingredients and further add value, we should do that,” says Sade at Freeli Foods. “We now have egg bites and slices of frittata as a result.”

Don’s Prepared Food, based in Schwenksville, PA, is offering more prepack grab-and-go items. These include all-natural and traditional artisan deli salads.

“Our goal is to put innovative items into grab-and-go packaging,” says Carl Cappelli, senior vice president of sales and business development at Don’s Prepared Food .

The company has launched a line of bowl meals as well as six clean label dips with a 28-day shelf life.

Venus Wafers , based in Hingham, MA, has had a lot of interest in bulk, bite-size crackers that are placed in grab-and-go trays with cheese or fruit for lunch or as a snack.

“With grab-and-go products, the simpler, the better,” says James Anderko, Venus Wafers’ vice president of sales of marketing. “And it’s best to keep the price point as competitive as possible.”

Staple grab-and-go items at George DeLallo Co. Inc ., based in Mt. Pleasant, PA, include pitted olives, marinated artichokes, roasted peppers and colorful antipasto salads.

“Not only do these items make for healthy snacks and tasty additions to charcuterie trays and cheese boards, but they are flavorful gourmet ingredients, too,” says Giuliana Pizzuto, marketing director. “The more versatile the item, the more reasons customers have to grab them up.”

DeLallo’s new pre-packaged multi-compartment trays feature a curated collection of olive and antipasto items. Available in sizes for both smaller and larger gatherings, trays feature three to four individual items.

Sandridge Food Corp. , Medina, OH, introduced a new line of spring salads in rigid packaging that is reusable.

“Trends are in comfort foods, nothing too off the beaten path, as people want classic dishes,” says Julie Jones, marketing coordinator at Sandridge Food.

Up and coming grab-and-go items include meal-prep kits, food with cleaner labels and more natural foods.

There have been continuous packaging innovations within the segment. Genpak’s leakproof deli packaging helps operators ensure that food remains fresh and secure.

“Tamper-evident packaging is a trending innovation that gives consumers piece of mind and helps retailers ensure that items are presented and sold safely,” says Klakulak-Sclafani at Genpak. “Compartmentalized deli packaging is an innovation that allows supermarkets to cohesively present meal and snack options.”

Genpak’s APET Deli containers help provide a longer shelf life. The container’s structural integrity serves as a defense against oxygen and prolongs the lifespan of food items.

Harvest Choice, Genpak’s newest sustainable packaging solution, is made from 100% recycled board. This container aligns with overall consumer preference for more eco-friendly packaging and waste reduction. USDA BioPreferred and recyclable, the PFAS-free container is a versatile packaging grab-and-go solution for sandwiches, salads and sides.

When it comes to fresh, ready-to-eat items like salads, Placon’s innovations focus on security features like tamper-evident lids or film-sealing, and material composition to maintain freshness.

“Grab-and-go offerings have driven the demand for tamper-evidence because more food items are pre-packaged and purchased separately from the deli counter,” Kinziger says. “With curbside pick-up and increased delivery, people want to ensure their food has not been tampered with since the initial package date. We thermoform our stock salad bowls with EcoStar, a post-consumer PET material made from curbside recyclables and ocean-bound plastic. Our new OxyStar material is a high-barrier sheet that increases the shelf-life of food products with an oxygen scavenging agent to prevent moisture and oxygen transmission. Placon recommends using a high-barrier material for all grab-and-go items, especially food items with high fat and protein content. Additionally, OxyStar is the first barrier material that has a #1 resin code, meaning it is recyclable.”

Placon’s newest addition to its multi-compartment product offering is its Crystal Seal reFresh Parfait Cups. The parfait line is made from EcoStar material, which contains 75% or greater, post-consumer PET recycled content. These multi-compartment cups are recyclable, crystal clear and can mix and match each base and insert tray. The parfait line offers an 8- or 12-ounce size base, that comes with a flat, dome or pedestal lid option. Each base has a tamper evident hinge that keeps product safe until the consumer is ready to open the package. Insert trays fit securely inside each base, so that wet and dry ingredients can remain separated and mixed in later. Parfait Cups offer a single or two compartment tray that separates ingredients. The base was designed to fit securely into a standard car cup holder.

Selling Convenience

Given the limitation of secondary displays for fresh items, shelf signage is a great way to call attention to new items to raise awareness and trial.

“I believe the future of grab-and-go will be determined directly by the consumers,” says Sabra’s Sutkiewicz. “As more consumers move towards functional benefits and plant-based eating, it will directly impact the kind of innovation that brands create and bring to the marketplace. Furthermore, with more consumers working from home in a hybrid work environment, the need for convenient, healthy lunch solutions is even greater, as workers don’t have an ‘in-home cafeteria’ to solve the lunchtime occasion.”

Placement can sometimes be a challenge in delis, where space is at a premium.

“We’ve found that supermarket delis want grab-and-go items but don’t have a dedicated space for specialty cheese snack items,” says Norseland’s Iafrate. “The snack cheese items are most often in the deli cooler with wedges, wheels and shreds of other cheese types. I think we will see a merchandising shift towards dedicated grab-and-go sections for specialty cheese items.”

Reser’s uses marketing communication tactics to educate, inform and create incentives for consumers to learn about and buy its products. Given the recent changes in shopping and consumption behaviors, the company has been adapting in-store vehicles to online environments.

Cross merchandising is very effective in bringing attention to grab-and-go items.

Andrew & Everett’s Cheese Snack Sticks & String Cheese can be effectively marketed in a secondary grab-and-go set at the check-out counter as an impulse buy, along with beverages.

Venus Wafers’ lines are best positioned by pairing items, such as soup or hummus.

“We see front-of-store displays in more markets where essentials and accessory items are placed conveniently for shoppers to have an efficient visit,” says Kinziger at Placon. “Employing a cross merchandising tactic such as snacks and meal kits next to drinks and other seasonal items can be effective for upselling. By complementarily grouping items, the customers are more likely to make an impulse purchase they think they might need.”

Looking ahead, fresh, pre-prepared foods will continue to thrive as retailers introduce new food options that align with consumer demand.

Klakulak-Sclafani at Genpak predicts supermarkets will also expand and re-evaluate how to present self-service warm/cold salad and meal bars.

“The growth of deli will help supermarkets attract customers, increase sales and obtain consumer loyalty,” Klakulak-Sclafani says. “Implementing reusable and/or recyclable packaging will be critical for supermarket delis, given the eco-friendly direction of legislature and consumer preference. Overall, packaging is the anchor to presenting and selling food packaging solutions. Packaging will continue to become more innovative and convenient to effectively showcase supermarket deli products.”

“The pandemic created an opportunity for supermarkets to revisit their meal programs, particularly with an eye for competing against restaurants,” says Reser’s Roe. “Grab-and-go is a point of differentiation and advantage that supermarkets can offer, particularly when the shopper is already at the store for other needs.” DB

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Growing with Grab: From Business Operations to Strategy and Planning

After working as a Business Operations Manager at Grab for three years, Priya Sahu was pondering about the next step in her career. Having managed business operations, she counts the launch of GrabFood and Grab Kitchen in Indonesia and Vietnam, and subsequently managing demand for them, as well as optimising business processes across our various verticals, among her key work milestones.

grab food business plan

Having played a pivotal role in our business operations, Priya was looking to make a career switch, where she could develop a more strategic and broad-based understanding of Grab. She managed to find the sweet spot within Grab – thanks to our Internal Mobility Programme. It enables Grabbers to expand their interests in various functions and take on new roles within the organisation that keeps them growing in the desired direction of their career. Today, Priya is a Strategy and Planning Manager with the regional operations team.

grab food business plan

Making the job transfer more seamless internally, Grabbers do not need to obtain formal approvals from their current reporting manager before applying for the new role and the transfer process has shortened to just up to three months. In a bid to retain talent, Grabbers who have been in their current role for over 12 months will be prioritised over external candidates for roles in the company. 

We chat with Priya to find out more about her experience switching roles within Grab and her biggest takeaways from making the transition. 

Why did you decide to switch to a new role at Grab?

I wanted to gain a better understanding on the operations of our core businesses at Grab, learn on P&L decision making and at the same time continue to work on some of the strategic projects.

How did your previous manager react when you wanted to move to a different team internally?

My previous manager is an extremely great mentor. She helped me to shape my thoughts and provided an independent opinion on my career switch at Grab. She has always encouraged me to find new avenues to learn. As such, I think the job switch was well- accepted by her and the team when I informed them about it.

How was your experience transiting into a new team?

The process was very seamless as both teams had a clear understanding of my responsibilities and the transition timelines. This also helped me to smoothly hand over my past projects. Within the first three weeks, I’ve gotten to know a lot about how different countries function in business, what the strategies are for each country as well as the priorities and implementation for upcoming projects.

How was the learning curve for you when adjusting to your new role?

The learning curve was steep for me as my job scope switched from micro to macro, which involves understanding how businesses function differently in various countries on a broader level. However, my senior colleagues have given me immense opportunities to keep learning. 

What new learning opportunities have you received in your new role?

My new role involves supporting the group Managing Director of Grab’s regional operations, setting and executing a regional strategy to manage our core businesses as well as ensuring that operations run smoothly within the region. I have received a lot of opportunities to study, create and implement high strategic initiative projects for our consumers and partners.

What kind of support did you receive from your current team?

They trusted me right from day one, and my new team members helped me a lot so that I could work independently. As I ramp up my responsibilities in my new role, my manager has been addressing and answering questions that I have – down to the basic ones.

What are the benefits of participating in Grab’s Internal Mobility Programme?

In my opinion, if you believe in a company’s culture and you can relate to its mission, which I do, internal mobility is a great way to continue learning within an organisation. It provides a very safe environment to challenge yourself, come out of your comfort zone, make mistakes and continue learning. 

Also, the professional rapport that we’ve built with our colleagues in previous roles comes in handy when taking on new roles in the organisation. I am thankful to Grab’s leaders for keeping the company culture so open and increasing opportunities for internal mobility.

We encourage Grabbers to consider Internal Mobility when developing their careers. Interested in joining the Grab family? Check out our open roles here !

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Grab Business Model

Grab: who are they and what do they do.

Grab Malaysia Services

According to their Facebook, Grab is Southeast Asia's leading ride-hailing platform that offers the fastest booking service for taxis, private cars & motorbikes through one mobile app. In this article, we will be talking about the Grab business model.

They are heavily funded by venture capitals such as Softbank. So who, exactly, is Grab? What is the Grab business model?

Grab's growth has accelerated exponentially towards the end of 2018. With the sudden merge with them and Uber in March 2018, they now stand on top of the ride-hailing services within South East Asia (SEA).

Some variation in type of rides are offered across the SEA countries (motorcycles in Indonesia, scooters in Singapore) allow local services to compete with Grab within their country, but none can compete with them within the entire SEA region at the moment.

Though Grab has other services provided, this article will mainly be focusing on it's ride-hailing services and the 'Grab business model".

BRIEF HISTORY OF GRAB

2012 - Launched in Malaysia as GrabTaxi

2013 - Entered Singapore, Thailand, and the Philippines.

2014 - Expanded to Vietnam and Indonesia, launched GrabCar in SEA and launched GrabBike in Vietnam.

2015 - Launches GrabBike to compete with Go-Jek in Indonesia, and enters logistic delivery services with GrabExpress.

2016 - GrabPay launched as a mobile payment service, and GrabFood introduced to compete with UberEats.

2017 - Entered Myanmar and Cambodia, and acquired Kudo to push GrabPay harder in Indonesia.

2018 - Merged with Uber's SEA operations.

Grab Application UI

GRAB FACTS & STATISTICS

Grab Users : 100 million passengers

Total Number of Rides : 3 billion

Average Daily Rides : 4 million rides

Drivers on Grab : 2 million

Monthly bookings via Grab : 5.1 million bookings

Grab availability : 336 cities, 8 countries

Average Bookings a second : 7 bookings

Grab downloads : 125 million downloads

Funding raised : $6 billion

Annual revenue run rate : $1 billion

Grab employees : 5, 000 employees

Grab reported value : $11 billion

Number of RnD centres : 6 centres

*Note that the statistics used may be slightly dated*

THE RIDE-HAILING BUSINESS & REVENUE MODEL

Grab business model functions very similarly to it's Western counter parts, Uber and Lyft. Below are the business models both Western companies run, which should us an idea of how ride-hailing functions.

grab food business plan

Comparing the two, there are very few differences in their overall business models . It should be safe to assume that Grab business model functions in a similar way as well. Typically, their transactions should follow the same procedures, which are:

  • A user inputs a starting point and a destination.
  • The application looks for drivers in the area.
  • A willing driver accepts the booking, and goes to fetch the user.
  • The user gets in the car and heads to their destination.
  • Upon reaching, the user pays the driver the amount due.

Based on the info-graphics provided, the common revenue stream ride-hailing services share is on a car rides per KM basis.

But the drivers are the ones getting paid for it right? This is true for all ride-hailing services, but drivers are also being charged a commission for using the respective ride-sharing platform resources of pairing them and their customers together. This is one of the major strengths of the Grab business model.

GRAB'S COMMISSION EARNINGS

Ride-hailing companies like Lyft and Uber are stated to take 20% and 25% commission respectively for use of their services. Grab themselves charge between 16% (Philippines) - 25% (Malaysia).

Focusing on Malaysia, Grab has around 3 million drivers just here. With a ride costing a minimum of RM5 (RM1.25/25% cut), the company stands to earn RM3.75 million of revenue right now off of commission if every driver were to get a confirmed ride. This commission is charged at the end of every ride, rather than after a certain amount of time, to the driver.

Another example we could use can be based on the monthly earnings of full time Grab drivers (working about 12 hours a day). Many full time drivers quote that their average gross earnings a month would be about RM6, 000 - RM7, 000. Using the 25% commission cut, drivers would earn RM7, 500 - RM8, 750. Based on this, Grab business model would have gotten about RM1, 500 - RM 1, 750 of commission from just one driver.

Let's explore this a little further. There are about Grab 60, 000 drivers in Malaysia. Assuming that about 15% of the drivers are full time, that would mean there would be 9 000 full time drivers. Using the lower estimate of RM1, 500, Grab would earned RM13.5 million of commission through full time drivers monthly.

MALAYSIAN COMPETITION(?)

Grab has some competitors in Malaysia, though they are still far from being able to truly rival this giant with 100M downloads. Below are such competitors as well as their number of downloads from the Google Playstore:

MyCar (500k downloads)

Mula (50k downloads)

JomRides (10k downloads)

It can be argued that Grab is an international company which would boost them to those high download numbers; but even taken conservatively by dividing the downloads equally, it would have an average download of 12.5 million per region.

In the case of Malaysia, even the runner-up MyCar still has a lot to do to catch up to the SEA unicorn. For Malaysia, Grab business model allows it to easily the dominant provider of ride-hailing services. However...

VALUE PROPOSITION - DRIVERS

Going back to the info-graphics, one of the key partners (and arguably the most important one) for ride-hailing services is the driver. Without drivers, it would be impossible for these services and the Grab business model to function because... there are no drivers. As such, getting drivers is essential to get your ride-hailing service running. However, that will prove to be very difficult for newer companies trying to get a slice of the ride-hailing pie in Malaysia.

Over the years and during it's fight for dominance over SEA with Uber, Grab had already set an infrastructure, system, and incentives for drivers to stay with, and exclusively, with them. Let's look into it a little.

grab food business plan

Achieving Silver tier would allow drivers to benefit from the GrabAuto reward. This reward entails Grab drivers to discounts and offers with car maintenance services that are partnered with them. A typical example would be discounts at Petron for changing your car's engine oil. Another reward would be special prices fixing the wear and tear on car, be it the breaks, accelerator, car batteries, etc.

This by itself would incentivize drivers (especially ones who would want to do full-time) to partner with Grab, as constantly sending your car for maintenance would eat up a sizable amount of their income. With the GrabAuto rewards, drivers potentially save 15-30% of their income on car upkeep, something other ride-hailing services could not offer at the moment.

That however was just the silver tiered rewards. Gold tier and above drivers also gain retail vouchers (again reducing spending for drivers), and Platinum tier drivers even get lifestyle rewards such as gym memberships and even medical offers at specific centres.

Want more? Well Grab has other ways to keep you driving for them. Agreeing to put an advertisement on your car allows for drivers to earn up to RM350 a month (depending on the campaign at the time).

Referring a friend to be a driver and earn RM100 for every referral. Enabling the auto-accept function will reduce Grab's commission from 25% to 20%. Drivers are now compensated for being stuck in traffic when on the way to pick-up a user with the time-booster feature.

grab food business plan

Grab is taking many measures to ensure they get and maintain their drivers. With offers like these, most drivers would probably avoid being a driver for any other company (at least in Malaysia)

With an example road map of becoming a good driver, including the benefits drivers will get, Grab has made it simple for new drivers to understand what they are getting into, and what rewards they can expect when driving with Grab.

grab food business plan

THE WEST AND LESSONS IN PR

Uber was Grab's main competitor in SEA until the the merger in 2018. However, Uber is still competing in the West with Lyft, where neither side has too much of an edge over the other.

Uber however, has branded themselves as always being aggressive and a bully of the transportation industry. This had become a PR nightmare in 2017 , where misinformation and assumptions of Uber reducing their prices for a certain period of time was done to gain profit over the hardships of immigrants.

Though the assumptions were proven false, the damage done was significant, as many users tried to delete their accounts. "Try" being a keyword, as Uber did not have an automated account deletion system, which caused even more controversy, and was forced to make such a system over the weekend. Their aggressive image had backfired, which had an effect in the coming times.

From 2017 to 2018, many Uber drivers were either driving for both Uber and Lyft, or switching to Lyft all together. This was due to a price cut for Uber drivers, which was done in order to compete with Lyft. Rides that went above 10 miles (16km) would actually be getting less money after the change (seen in the chart below).

grab food business plan

This can be a lesson to learn for Grab. Self branding is important, and branding yourself in a negative light can bite back in the future. Grab have given themselves a popular image over the years, being the friendly service provider of SEA vs the aggressive Uber (pre-merge). This will help them a lot down the line, but they must maintain the image they created to avoid any PR problems.

Another thing Grab can take away from this is to take care of their drivers. With income of Uber drivers getting cut, drivers look elsewhere to get income. That said, Grab has done a good job in maintaining their drivers via the GrabAllStars programme. With their bases in check, Grab is looking good in continuing their business in SEA.

AFTERTHOUGHTS

Grab is growing, and growing fast. With a majority of the market share in ride-hailing services in Malaysia, they have not stopped trying to gather more people to join their fleet of drivers. By doing so, and due to the environment of this business, the limited amount of drivers have very little reason to join any other services. This shows the significant advantage that Grab business model proposes.

Though they are using money to achieve this, it is rather similar as to when they were competing with Uber for dominance; although money was spent more into giving customers discounts and special offers more than anything else.

At this point, as Grab maintains it lead in Malaysia, other ride-hailing services will have to try and match with them to get more drivers into their work force, or settle for a very small part of the market share. After all, with more drivers, there are more transactions, and with more transactions, there is more revenue to be made through commissions.

With a good image and great incentives to keep their drivers, Grab is unlikely to be dethroned as the biggest ride-hailing service in Malaysia anytime soon.

WANT TO KNOW MORE ABOUT UBER?

Then read up here to dive into Uber's revenue model:

https://www.nexea.co/is-uber-actually-a-charity-organisation/

1 https://www.mindk.com/blog/cost-to-develop-a-taxi-app/

2 https://themalaysianreserve.com/2018/05/02/almost-all-uber-drivers-have-joined-grab/

3 https://vulcanpost.com/653234/grab-incentive-system-hourlyguarantees-new-earnings/

4 https://www.similarweb.com

5 https://www.imoney.my/articles/driving-for-grab

6 https://www.scmp.com/tech/article/2157177/how-grabs-ceo-steered-it-garage-malaysia-southeast-asias-most-valuable-tech

7 https://www.entrepreneur.com.ph/news-and-events/grab-drivers-suffer-losses-after-fuel-prices-increased-and-ltfrb-removed-per-minute-charge-a00222-20180503-lfrm

8 https://www.text100.com/strategy/sucessful-sharing-economy-business-model/

9 https://futureworktechnologies.com/how-grabtaxi-works-business-revenue-model

10 https://techcollectivesea.com/2018/06/27/the-2-moments-that-redefined-ride-sharing-in-southeast-asia/

11 https://www.cnbc.com/2018/10/25/advice-for-building-a-business-how-grab-expanded-in-southeast-asia.html

12 https://www.nst.com.my/news/2016/11/190916/60000-msians-are-uber-grab-drivers

13 https://www.businessinsider.my/new-uber-pay-rates-hurt-earnings-drivers-say-2018-12/?r=US&IR=T

14 https://www.businessinsider.com/uber-drivers-are-growing-angrier-over-price-cuts-2017-3/?IR=T

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Written by Nizar Ahmad

Intern at NEXEA

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2 comments on “Grab Business Model”

Interesting article you have here. Keep up the good works analysing the industry using business model canvas.

Jamal Senior Fellow at IIUM.

Great information. Good job Nizar

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NCR - Digital-First Banking Tracker - September 2023 Banner

Grab Users Boost Digital Bank Adoption as Delivery, Ride-Hailing Businesses Recover

Grab rideshare pickup and drop-off sign

Singapore’s Grab reported its first-ever quarterly profit on Thursday (Feb. 22). This, despite a cautious outlook for annual sales as its ridesharing and food delivery operations in the “fertile” Southeast Asia market continue to recover from the effects of the COVID-19 pandemic.

“Our mobility business, which was severely impacted by the pandemic, exceeded pre-COVID levels as we exited 2023,” Grab CEO and Co-founder Anthony Tan told investors on a fourth-quarter earnings call, adding that the company is “now the largest on-demand platform in the region at a scale that is over 3x larger than our next closest competitor.”

In terms of headline numbers, deliveries revenue grew to $321 million in Q4 2023 from $268 million in the same period in 2022, and by 80% year over year (YoY) for the full year 2023. These results, according to company executives, have set them “up strongly for 2024.”

Mobility revenues also increased by 26% YoY in Q4 and 36% YoY for the entire year, driven by an increase in tourist ride-hailing demand.

“The traveler segment is a key focus for us compared to domestic users,” Chief Operating Officer Alex Hungate said on the call. “Travelers are generally less price sensitive, and on average, spend nearly twice as much as domestic users. We are pleased to see that our efforts to capture this set of users has yielded good results.”

Overall Monthly Transacting Users (MTUs) grew 8% YoY, from 32. 7 million in 2022 to 35.5 million in 2023, with Growth in Deliveries MTUs reaching an all-time high during the quarter.

Mobility growth was mainly driven by an uptick in Mobility MTUs and average order frequency as the company worked on improving driver productivity to match the surge in demand.

Another highlight of the year was Grab Unlimited, the company’s subscription service, which continues to account for a third of delivery gross market value (GMV), with higher subscriber spend levels and retention rates compared to non-subscribers.

“Grab Unlimited, the largest paid on-demand loyalty program in Southeast Asia now, is proving to be an important engagement and retention driver for our loyal users,” Hundgate said.

He added that the company sees opportunities to enhance customer lifetime value within Grab Unlimited by increasing cross-selling rates, especially toward mobility and financial services, while hinting at plans to introduce more non-monetary, exclusive benefits for loyal subscribers.

Grab Users Drive Virtual Banking Business

The ridesharing and delivery company noted significant progress with GXBank, a digital banking collaboration between Grab and Singaporean telecommunications giant SingTel. GXBank commenced full operations in Malaysia in the last quarter of 2023.

The Grab-led financial institution (FI), Malaysia’s first virtual bank and recipient of the first of five licenses  granted in the country, saw more than 100,000 customer sign ups in the first two weeks of launch, of which 79% of depositors were Grab users.

“Loan disposals for GXS Singapore also grew quarter on quarter, and over 80% of GXS customers have ecosystem linkages to Grab,” Tan noted.

Overall, financial services revenues more than doubled compared to last year, growing by 12% from the previous quarter as a result of higher contributions from the company’s payments and lending businesses.

Additionally, total loans disbursed in 2023 grew 57% year-on-year to reach 1.5 billion. According to management, the launch of new Flexi loan volumes from  Singapore’s GXS Bank and the ecosystem’s growth, which culminated in Grab Financial (GrabFin) , both aided in this expansion.

Grab also plans to further leverage generative AI to drive productivity enhancements. “For example, we have now developed our own in house LLM-powered marketing tool which has enabled us to reduce content generation time from 99 hours to just 90 minutes while raising output quality,” Tan said.

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Business Plan Grab and Go FoodTruck

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Dalam mewujudkan tujuan Grab and Go kami menyajikan varian rasa yang unik khususnya buat produk makanan burger kami yaitu tersedia varian rasa saus rendang, rica rica, cheese, dan BBQ. Tagline kami adalah "Spoil your tounge!", dimana artinya konsumen dapat memanjakan lidah mereka dengan kualitas cita rasa yang kami tawarkan kepada mereka.

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Grab forecasts weak 2024 revenue after profitable quarter, buyback plan

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Follow our news, recent searches, grab forecasts weak 2024 revenue after profitable quarter, buyback plan, advertisement.

A Grab logo is pictured at the Money 20/20 Asia Fintech Trade Show in Singapore on Mar 21, 2019. (File photo: REUTERS/Anshuman Daga)

This audio is AI-generated.

Grab Holdings reported its first quarterly profit on Thursday (Feb 22) and unveiled a maiden share repurchase program, but the ride-share and food-delivery firm's weak annual sales forecast fanned growth worries and weighed on its shares.

While the Singapore-based company's ride-share growth hit pre-pandemic levels in 2023, its food-delivery services are rebounding from a slowdown following a boom during the lockdown.

"There will be revenue acceleration in the years beyond 2024 as investments in our new products bear fruit," chief financial officer Peter Oey told Reuters.

He said Grab was building premium offerings in its mobility and delivery services that could generate high-value transactions.

US-listed shares of Grab, which also said it expects an annual adjusted core profit, were down 2 per cent at US$3.38 in early trading.

The company forecast fiscal 2024 revenue between US$2.70 billion and US$2.75 billion, compared with analysts' average estimate of US$2.80 billion, according to LSEG data.

Grab said on Thursday it would repurchase US$500 million worth of class A ordinary shares and announced an early payment of the remainder of a term loan. This followed global peer Uber announcing its first-ever share buyback last week.

Grab also projected full-year adjusted core profit of US$180 million to US$200 million, compared with estimates of US$135.2 million.

The company's fourth-quarter revenue of US$653 million beat estimates of US$629 million. Revenue rose 26 per cent in its mobility business on holiday quarter travel demand, while it increased 20 per cent in its delivery unit.

Grab posted a net income of US$11 million in the fourth quarter, helped in part by a "reversal of an accounting accrual".

The company delivered its first adjusted core profit in its fiscal third quarter, aided by workforce reduction and cut to some incentives and technology costs over the past two years.

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Backers of ‘End the Grocery Tax’ bill gather

<strong>Supporters of the &ldquo;End the Grocery Tax&rdquo; bill proposed by Tennessee House Representative Aftyn Behn (far left) gathered Saturday, Feb. 24 outside the Kroger on Summer Avenue. They also included (from left) Jesse Huseth, candidate for State House District 97;&nbsp;Tennessee House Representative G.A. Hardaway; Noah Nordstrom, candidate for State House District 83, and&nbsp;Tennessee House Representative Dwayne Thompson.</strong> (Ziggy Mack/Special to The Daily Memphian)

Supporters of the “End the Grocery Tax” bill proposed by Tennessee House Representative Aftyn Behn (far left) gathered Saturday, Feb. 24 outside the Kroger on Summer Avenue. They also included (from left) Jesse Huseth, candidate for State House District 97; Tennessee House Representative G.A. Hardaway; Noah Nordstrom, candidate for State House District 83, and Tennessee House Representative Dwayne Thompson. (Ziggy Mack/Special to The Daily Memphian)

Those in favor of the proposed House Bill 2043, which would eliminate the state tax on groceries if it passes, got together Saturday — where else? — outside a supermarket.

Kambui Bomani

Kambui Bomani

Kambui Bomani is the general assignment and breaking news reporter for The Daily Memphian. He is a graduate of Jackson State University’s multimedia journalism program and earned a master’s degree in digital journalism from Syracuse University’s Newhouse School. His work has been published in Pro Football Focus, The Southside Stand, HBCU Legends, FanSided and Wisconsin Sports Heroics.

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Grab forecasts weak 2024 revenue after profitable quarter, buyback plan

While the Singapore-based company's ride-share growth hit pre-pandemic levels in 2023, its food-delivery services is rebounding from a slowdown following a boom during the lockdown.

"There will be revenue acceleration in the years beyond 2024 as investments in our new products bear fruit," CFO Peter Oey told Reuters.

He said Grab was building premium offerings in its mobility and delivery services that could generate high-value transactions.

U.S.-listed shares of Grab, which also said it expects an annual adjusted core profit, were down 2% at $3.38 in early trading.

The company forecast fiscal 2024 revenue between $2.70 billion and $2.75 billion, compared with analysts' average estimate of $2.80 billion, according to LSEG data.

Grab also projected full-year adjusted core profit of $180 million to $200 million, compared with estimates of $135.2 million.

The company's fourth-quarter revenue of $653 million beat estimates of $629 million. Revenue rose 26% in its mobility business on holiday quarter travel demand, while it increased 20% in its delivery unit.

Grab posted a net income of $11 million in the fourth quarter, helped in part by a "reversal of an accounting accrual".

The company delivered its first adjusted core profit in its fiscal third quarter, aided by workforce reduction and cut to some incentives and technology costs over the past two years.

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Grab forecasts weak 2024 revenue after profitable quarter, buyback plan

grab food business plan

BENGALURU - Grab Holdings reported its first-ever quarterly profit on Feb 22 and announced a maiden share repurchase plan, but a weak annual sales forecast fanned growth worries and weighed on the ride-share and food-delivery firm’s shares.

The Singapore-based company forecast fiscal 2024 revenue between US$2.7 billion (S$3.6 billion) and US$2.75 billion, the midpoint of which was below analysts’ estimates of US$2.8 billion, according to London Stock Exchange Group data. Grab’s US-listed shares were down 5 per cent at US$3.28 in pre-market trading.

The forecast took the sheen away from Grab’s earnings, while the company also said it expects an annual adjusted core profit.

“There will be revenue acceleration in the years beyond 2024 as investments in our new products bear fruit,” Grab chief financial officer Peter Oey said.

Grab and rivals such as Indonesia’s GoTo benefited from a boom in food-delivery services during the pandemic, but the growth is slowing. Grab’s ride-share growth has only just hit pre-pandemic levels.

Grab has trimmed its workforce, as well as cut back on some incentives and technology costs over the past two years.

The company said on Feb 22 it will repurchase US$500 million worth of Class A ordinary shares, and announced an early payment of the remainder of a term loan. Uber unveiled its first-ever share buyback last week.

Grab forecast full-year adjusted core profit of US$180 million to US$200 million, compared with estimates of US$135.2 million.

The company reported fourth-quarter revenue of US$653 million, beating estimates of US$629 million. Mobility revenue rose 26 per cent, helped by holiday-quarter travel demand, while delivery revenue increased 20 per cent.

Grab posted a net income of US$11 million in the fourth quarter, helped in part by a “reversal of an accounting accrual”, according to the company. REUTERS

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IMAGES

  1. How Grab Works : Know Grab Business Model And Revenue Resource

    grab food business plan

  2. Grab's Business And Revenue Model Explained : How it Works?

    grab food business plan

  3. Grab Food Business Model

    grab food business plan

  4. Grab Business Model

    grab food business plan

  5. Grab launches GrabFood delivery service in Singapore, aims to be one

    grab food business plan

  6. How To Build A Grab and Go Menu

    grab food business plan

VIDEO

  1. #money #tip #foryou #tipping #restaurant #foodservice

COMMENTS

  1. How To Build A Grab and Go Menu

    By serving healthy options, you can expand your customer base and be more inclusive to dietary restrictions. Having a rotating range of weekly options also allows your business to adapt to the meal moods of your customers. To add convenience to your business, incorporate a grab-and-go menu and a selection of breakfast, lunch, and snack options.

  2. How To Build a Better Grab-and-Go Restaurant Business

    A grab-and-go restaurant business plan is changing the future outlook of restaurants. Many customers just don't have the time to dine in and are looking for a quick and easy meal. Robotics and kiosk-type systems enable customers with prompt and accurate service without sacrificing the quality of the meal.

  3. Marketing plan for GrabFood

    Marketing plan for GrabFood Sravanti Uppaluri · Follow 10 min read · Jan 30, 2019 -- Introduction: Grab is a leading organization offering ride sharing services and on-demand food delivery...

  4. Food, Beverage, and Restaurant Business Plan Examples

    2. Write a business plan. Create a business plan that thoroughly explains your business model, operations, pricing strategy, and financial projections. 3. Handle health, safety, hygiene and legal compliance. Food and beverage is a highly regulated industry with additional legal, health, and safety requirements.

  5. Grab and Go Menu Ideas: 5 Great Ways to Increase Business

    1. GRAB AND GO RESTAURANT IDEAS A grab and go business model takes the effort out of traditional to-go orders, and that's a big plus for restaurant guests and commercial kitchen staff. These are a few examples of time-saving ideas that serve up carry-out convenience without having to process incoming to-go orders.

  6. Dissecting The Grab Business Model

    Grab is a super app based in Southeast Asia which offers a variety of different products and services, ranging from food delivery all the way to investment products. Grab makes money via driver and restaurant commissions, payment processing fees, advertising on its platform, referral fees, and many more. Its business model is predicated on ...

  7. Grabfood Marketing Strategy: 5 Secrets You Can Learn

    Contrary to popular belief, Grabfood marketing strategy is more than just advertising and promotion. It also concerns building connectivity and trust with the customers. As a new online business owner in the industry, adopting Grabfood's marketing strategy can bring your company a few steps ahead of the curve. Despite how glorious this plan ...

  8. Grab says its food business can steer the company to profitability

    Indonesia Grab bike riders waiting for passengers in Jakarta. Ride-hailing company Grab is betting on its growing food delivery business to drive growth and profitability in the long term, a ...

  9. How to Build a Grab-and-Go Restaurant Menu

    Sandwiches and wraps: Premade sandwiches and wraps can be a convenient option for customers on the go. Offer a variety of protein options, such as turkey, chicken, roast beef, and vegetarian options like plant-based meat, hummus, or avocado. Salads: Packaged salads can be a healthy grab-and-go option. Offer a range of greens, such as mixed ...

  10. Grab Business Model: Driving Southeast Asia Forward

    Starting with the taxi business, Grab's business model has now become a Super App concept that enables millions of people each day to access driver- and merchant-partners to order food or groceries, send packages, hail a ride or taxi, pay for online purchases, or access services such as lending, insurance, wealth management, and telemedicine.

  11. Grab Marketing Strategies and Challenges for the upcoming era

    Uber's challenging competitor Grab Hold. Grab contributed around half of the region's food delivery GMV, estimating $5.9 billion, and led the market in five out of six Southeast Asian ...

  12. How Does Grab Make Money? The Grab Business Model In A Nutshell

    Grab is a Singaporean food delivery, transportation, and digital services company founded in 2012 by Anthony Tan and Tan Hooi Ling. Tan first had the idea for a taxi-booking mobile app in Southeast Asia while studying at Harvard Business School. At the time, the Malaysian taxi industry had a poor reputation.

  13. How Grab works: The on-demand business model

    Jugnoo 29th March 2022 How Grab works: The on-demand business model Grab ride-sharing is a renowned on-demand business model that leads Southeast Asia's mobility platform. Grab in Asia actively offers food delivery services, ride-sharing services, and ride-booking services for taxis, bikes, carpooling, shuttle services via a single super-app.

  14. Build your menu or catalogue (and your business)

    Your GrabFood menu or Mart catalogue is a free marketing tool that promotes your food and products to customers. Through the GrabMerchant App and Portal, we will help you create a menu or catalogue that will attract customers and make them want to order from you. Create a menu category, item and option group in the GrabMerchant App.

  15. The Technology to Power Effective Grab-and-Go Restaurants

    As a result, the grab-and-go business plan should spell out the process for improving workflows and include technologies like self-service kiosks, online ordering, and mobile apps. These technologies can help reduce the time it takes to order and receive food, which is essential for a grab-and-go restaurant since customers often hurry.

  16. The Grab-and-Go Phenomenon

    The all-natural cheese bites are made of 100% Old Amsterdam Gouda Cheese with a smooth, rich flavor. Andrew & Everett's grab-and-go offerings include Cheese Snack Bars and Cheese Sticks & String Cheese in a variety of flavors like Sharp Cheddar, Pepper Jack, Colby Jack and Mozzarella. The company's 2-ounce Cheese Snack Bar for larger ...

  17. Growing with Grab: From Business Operations to Strategy and Planning

    After working as a Business Operations Manager at Grab for three years, Priya Sahu was pondering about the next step in her career. Having managed business operations, she counts the launch of GrabFood and Grab Kitchen in Indonesia and Vietnam, and subsequently managing demand for them, as well as optimising business processes across our various verticals, among her key work milestones.

  18. Grab Business Model

    Based on this, Grab business model would have gotten about RM1, 500 - RM 1, 750 of commission from just one driver. Let's explore this a little further. There are about Grab 60, 000 drivers in Malaysia. Assuming that about 15% of the drivers are full time, that would mean there would be 9 000 full time drivers.

  19. Grab Users Boost Digital Bank Adoption as Delivery Recovers

    The Grab-led financial institution (FI), Malaysia's first virtual bank and recipient of the first of five licenses granted in the country, saw more than 100,000 customer sign ups in the first ...

  20. (DOC) Business Plan Grab and Go FoodTruck

    Business Plan Grab and Go FoodTruck Jennifer Lin Dalam mewujudkan tujuan Grab and Go kami menyajikan varian rasa yang unik khususnya buat produk makanan burger kami yaitu tersedia varian rasa saus rendang, rica rica, cheese, dan BBQ.

  21. Grab for Business

    Overview. Give your employees and clients a seamless meal experience from a wide range of. restaurants and bulk order meal providers. Reimagine your office pantry to include a wide range of goods, gifts and essentials to offer employees and clients. For Bulk Orders.

  22. Grab forecasts weak 2024 revenue after profitable quarter, buyback plan

    Grab Holdings reported its first quarterly profit on Thursday and unveiled a maiden share repurchase program, but the ride-share and food-delivery firm's weak annual sales forecast fanned growth ...

  23. Safe convenient Grab food deliveries to fuel businesses

    Mart. Everything you need from office stationaries to snacks for the pantries, on demand. Express. Book and manage deliveries for your company instantly. Food deliveries from a wide variety of restaurants to fuel any business activity Orders made via Grab app are charged to the company within pre set spend policies.

  24. Grab forecasts weak 2024 revenue after profitable quarter, buyback plan

    :Grab Holdings posted its first-ever quarterly profit on Thursday and announced a maiden share repurchase plan, but a weak annual sales forecast fanned growth worries and weighed on the ride-share ...

  25. GRAB BUSINESS PLAN.docx

    Their initial idea was to solve real-time traffic congestion problems, especially because of the inconvenience of getting a taxi with an unpredictable amount of wasting time. Grab is a multinational ride-hailing company that offers range of services including transport, on-demand delivery, consumer and financial services on a single mobile pla...

  26. Tennessee backers of 'End the Grocery Tax' bill unite

    Supporters of the "End the Grocery Tax" bill proposed by Tennessee House Representative Aftyn Behn (far left) gathered Saturday, Feb. 24 outside the Kroger on Summer Avenue. They also included (from left) Jesse Huseth, candidate for State House District 97; Tennessee House Representative G.A ...

  27. Grab forecasts weak 2024 revenue after profitable quarter, buyback plan

    Grab Holdings GRAB reported its first quarterly profit on Thursday and unveiled a maiden share repurchase program, but the ride-share and food-delivery firm's weak annual sales forecast fanned growth worries and weighed on its shares.. While the Singapore-based company's ride-share growth hit pre-pandemic levels in 2023, its food-delivery services is rebounding from a slowdown following a boom ...

  28. Grab shares plunge after poor outlook clouds first buyback plan

    Grab expects a 14 per cent to 17 per cent rise in sales to US$2.7 billion (S$3.6 billion) to $2.75 billion in 2024, lagging behind the US$2.8 billion projection.

  29. Grab forecasts weak 2024 revenue after profitable quarter, buyback plan

    Grab forecast full-year adjusted core profit of US$180 million to US$200 million, compared with estimates of US$135.2 million. The company reported fourth-quarter revenue of US$653 million ...