How does Grab make money

The purpose of this blog is to answer the question, “How does Grab  make money?” Areas of focus include the history of Grab, the products offered by Grab, and most importantly the in-depth process of how Grab products generate money.

How does grab make money?

Grab makes money from a range of sources that includes commissions from drivers and cafes, advertising on its platform, referral fees, and payment processing charges, amongst others.

Individuals and driver-partners who wish to be covered by insurance must pay a premium. Every time a consumer uses GrabPay to complete a purchase with a store, the company levies an additional fee to the consumer.

What is Grap

Grab is a Southeast Asian app that provides products and services, including food delivery and financial services. The Grab business strategy is centred on offering a solution that covers virtually all of its clients’ everyday demands via a super app.

Grab has grown its products across Southeast Asia over the years to include delivery, mobility, financial services, enterprise, and other services, all of which are delivered through a single super app. Grab is headquartered in Singapore. Consumers from all walks of life relate to everyday entrepreneurs through these services, resulting in fantastic experiences and addressing the needs of millions of people in 428 cities across eight countries.

Integrity and corporate ethics are crucial to Grab’s goal of economic empowerment for all. Today, nearly six out of ten Southeast Asians are unbanked or underbanked. Grab Financial Group seeks to change that by offering simple, transparent, and adaptive financial products to everyone.

History of Grap

Grab was created in 2021 by Anthony Tan and Tan Hooi Ling, and it is based in Singapore. It is a Singaporean company that provides food delivery, transportation, and digital services. Tan was the one who came up with the concept of a smartphone app for cab booking that was tailored exclusively for South Asia. His stay at Harvard Business School was during a period in which Malaysia had a negative reputation in the taxi industry. Customers were often overcharged, and women’s safety was a big problem in the area.

Tan collaborated with Tan hooi ling to launch Grab as the MyTeksi App in Malaysia. Tan is the founder of Grab. Tan’s funding, as well as a $25,000 grant from Harvard Business School, contributed to the development of the app. A little more than two years later, the company moved its headquarters from Malaysia to Singapore. There, the company invested in a fleet of 100 completely electric taxis, making it the largest fleet of electric taxis in Southeast Asia.

Tan maintained a strong commitment to improving the safety of female passengers, particularly as the organization grew in size. Every Grab driver was interviewed in person before being employed, a practice that Tan acknowledged was time-consuming but inevitable to ensure the safety of passengers.

Grab’s ride-hailing service could be available in as many as eight Southeast Asian countries within the next seven years. The large acquisition of rival Uber’s entire footprint in the region was completed in 2018 by the company in question. Users can now request several modes of transportation other than taxis, such as private vehicles, bicycles, shuttle services, bike taxis, and carpooling, in addition to traditional taxis.

A commercial strategy like that of so-called “super apps” like Alipay and Wechat was implemented later on, with the app now offering additional services including hotel booking, ticket purchasing, food delivery, grocery shopping, and on-demand video in addition to its core functionality.

Grab has recently moved into the financial technology (fintech) sector, providing a variety of insurance and lending solutions to small and medium-sized businesses.

Grab has postponed a $40 billion initial public offering (IPO) scheduled for June 2021 owing to an anticipated merger with acquisition company Altimeter Growth Corp. Revenue for the first quarter of the prior year was $216 million.

Grab Facts

Company NameGrab Holding Inc
Type of CompanyPublic
FoundersAnthony Tan & Tan Hooi Ling
ProductsDigital payment services and food delivery
Founded Date2012
WebsiteClick here

Services offered by Grab

A distinct range of products is available based on where you live. Nonetheless, all of the accessible items can be accessed through a single app. The concept of a super-app originally gained hold in China, where Tencent’s WeChat and Meituan were instrumental in popularising the concept. We’ll take a closer look at how Grab makes money through each of the services it now provides.


Grab’s Rides provides customers multiple options for transportation. Therefore, Driver are employed on a contract basis. This also means that they have the freedom of choosing their own working hours. Grab has created a separate app for its drivers to use to log in for the purpose of better employee management.

However, Drivers are allowed to pay for their own expenses which includes Gas, insurance, and any other car-related maintenance. Grab has collaborated with other companies to assist their driver employees. For example in the year 2018, they formed an agreement with the company named Toyota in order to allow drivers in the country to have low interest loans that they obtain to modify their cars.


Users of GrabFood can order meals from nearby restaurants. Takeout delivery service in Grab works in partnership with drivers that pick up meals from restaurants and deliver it to customers’ homes. The fact that Grab supplies the kitchen infrastructure means that the percentage cut it takes from the partner is likely to be a little bit bigger.


Users can order groceries from various supermarkets and kiosks. Again, Grab generates revenue from the service by taking a profit cut from the grocery stores that they collaborate with. However, as compared to GrabFood and GrabRides, this cut is likely to be significantly lower. Furthermore, pricing on GrabMart is almost certainly slightly higher than those in the store. As a result, the product margins are typically higher.


Users of GrabExpress can, for example, send letters to certain addresses. Products are carried by bikes or automobiles, depending on the size of the consignment. Grab, like GrabRides, deducts a percentage of the entire fare. The fees are often equivalent to those imposed by ride-hailing services.


With the help of GrabPay, it is possible to pay for things and services both inside the Grab app ecosystem and at particular real companies. GrabPay is a mobile wallet that can be used both within the Grab app ecosystem and at certain physical businesses. Furthermore, in collaboration with Mastercard, Grab has produced physical debit cards for use in stores. A cost is charged to consumers who pay with a debit or credit card. This price is known as an interchange fee. Mastercard, which serves as the card’s issuer, and Grab are expected to agree on a shared fee for the card that they will divide between themselves.

Apart from that, the “buy now, pay later” feature has been added to the Grab app, which allows users to pay for things in four instalments over the course of four weeks. In spite of the fact that the service is technically free, clients will be subject to a late payment penalty if they do not make a timely payment on a monthly instalment.


In addition to providing a number of services, GrabAssistant, which is currently only accessible in a few countries, including Thailand, also provides an on-demand concierge service. Users can allocate help for a variety of chores, such as purchasing pet food, gardening tools or plants, medication, picking up laundry, and a variety of other duties.


GrabGifts is a virtual gift card that users may use to offer to friends and family as a holiday present. After then, the card may be used to pay for a variety of different services, such as transportation, food delivery, supermarket deliveries, and expedited delivery.


GrabGifts is a virtual gift card that users may use to offer to friends and family as a holiday present. After then, the card may be used to pay for a variety of different services, such as transportation, food delivery, supermarket deliveries, and expedited delivery.


Grab has partnered with local insurance companies to offer a number of coverage options to both customers and drivers. When customers book a holiday, they must pay for travel insurance. As a result of Grab’s collaboration with insurance guarantors to offer coverage, it is fair to assume that the fee paid is divided equally between Grab and its insurance partner(s).


It is a commercial solution that enables other businesses to advertise their products and services on Grab’s platform. According to Grab, more than 60% of users who use the app complete a transaction inside the same transaction session. Because of this, advertising may reach a highly targeted group that is eager to make a purchase.

Grab promotes its products using offline methods such as distributing samples in vehicles or adhering sticker advertisements to the outside of the vehicle. In that case, it is likely that both parties would agree on a predefined charge for the right to air the advertisements for a specified period of time.

Revenue Model of Grab

Driver: The Service ProviderPassengers: The ConsumersInvestors: The Financial Backbone
They join the site in order to earn money from their riding services. Grab offers flexible working hours and receives a large number of journeys through the platform.Passengers are the purchasers. Only when there is a bigger demand for cab services will the platform be beneficial for drivers. As a result, Grab offers a safe and transparent app that delivers a great customer experience.Grab secures investment from well-known investors. In 2020, it secured $856 million in funding from key Japanese investors. According to recent rumours, Grab is set to combine with Growth Capital, an altimeter located in the United States.

In this blog, we answered the question” How does Grab make money?” We found that Grab makes money from a range of sources that includes commissions from drivers and cafes, advertising on its platform, referral fees, and payment processing charges, amongst others. Please feel free to comment down your thoughts and let me know if you have any questions.

Frequently Asked question (FAQ): How does Grab Make money

How does grab work?

·   Request a Ride. Set your pickup and drop-off locations, then press Next.

·   Hire a Driver. We’ll locate the nearest available driver for you.

·   Monitor Your Driver. Know your driver’s name, address, and approximate arrival time.

·   Share Your Ticket.

·   Request a paper receipt.

What services does grab provide?

Grab is one of Asia’s most powerful mega-apps, offering transportation, food delivery, and now banking services. A mobile phone app allows you to access loans, insurance, payments, and investments.

What are the benefits of grab?

Customers can Simplify their daily transactions by accepting cashless payments, grow their business by reaching millions of hungry Grab consumers and consumers have the privilege of buying now and paying later, without interest.

What are the benefits of grab?

·   GrabPay. Accepting cashless payments simplifies your daily transactions.

·   GrabFood. Expand your business by reaching millions of hungry people. Consumer, grab.

·   GrabMart. Increase your sales by getting your products out the door and directly to your clients’ doorsteps.

·   PayLater. Allows your customers to buy now and pay later, with no interest.

What kind of app is Grab?

Grab originated as a taxi-hailing app and has now grown into ride-hailing, food, grocery, and package delivery, as well as financial services.

Who owns the Grab app?

Anthony Tan is the CEO and co-founder of Southeast Asia’s largest ride-hailing service, Grab.

Is Grab an IPO?

Grab raised $4.5 billion in the offering, making it the largest IPO by a Southeast Asian firm in US history.