Cities in the far reaches of Mindanao are among the next targets of ride-hailing application Grab Philippines this year as it continues to reap gains from the expanding economy.
Grab Philippines sees 2024 as the year for aggressive expansion, as the company seeks 10 more cities and municipalities for its local operations.
Grab Philippines country manager Grace Vera Cruz said on Daily Tribune’s online Straight Talk program that the company continuously assesses the needs of various regions, cities and municipalities as expansion targets based on its goal of bringing its services to areas that need improved mobility, delivery services, and digital financial solutions.
She said the expansion goes beyond increasing Grab Philippines’ presence, as it is anchored on its commitment to contribute to the improvement of local economies and provide essential services.
“Hopefully this year we will finish at least 10 more cities and municipalities. For example, we are in Davao, we are in Davao City, but we are also present in Tagum. There are more than 100 (areas that Grab Philippines serves). We just opened one in Tuguegarao last December 2023. We are also in GenSan, Cagayan de Oro, and I love seeing the progress in those areas,” Vera Cruz added.
She said that to date, about 40,000 drivers are on board the Grab Transportation Network Vehicle Service, with roughly 30,000 operating in Metro Manila.
Vera Cruz stressed that innovation is at the heart of their strategy.
“We’re continuously exploring new avenues that align with the evolving needs of Filipinos. This includes enhancing our capabilities transcending on-demand deliveries of food but also facilitating a robust offline dining experience. As many commuters continue to search for affordable and agile mobility solutions against congested thoroughfares, we continue to deepen our commitment to the motorcycle taxi sector.”
In August 2022, Grab Philippines acquired the ride-hailing app Move It, with plans to scale up its existing motorcycle taxi fleet and improve the efficiency of its platform.
The motorbike transport service seeks to create income opportunities for at least 6,000 driver-partners within the first three months from the date of its acquisition.
Goal to uplift 500,000 Pinoys
Vera Cruz said that since 2020, Grab Philippines has experienced substantial growth to reflect its deep commitment to nation building.
“This growth aligns with our aspiration to create half a million new livelihood opportunities in the coming years. Our strategy is to continuously innovate product and service offerings, extending our reach to more cities and municipalities,” she said.
Several merchants who partnered with Grab have seen a remarkable rise in sales.
“We serve thousands of merchants daily, offering them a platform to expand their reach and grow their businesses. This is a testament to our position as a catalyst for economic growth and empowerment, especially for small and medium enterprises,” Vera Cruz said.
With regard to revenues, while specific figures are proprietary, she said, “It’s evident that despite the challenges posed by the pandemic, we have emerged stronger and more resilient. Our revenue growth reflects our enhanced market presence and the trust placed in us by millions of consumers and users.”
Embraced quickly by Filipinos
Grab was initially established and launched in Malaysia in 2012, later relocating its headquarters to Singapore before expanding to other countries, including the Philippines.
Asked why Filipinos immediately accepted Grab, Vera Cruz said the key factor lay in the company’s deep understanding and ability to adapt to the unique needs and challenges in the Philippines and a consistent demonstration of malasakit, or compassion, towards Filipinos.
“Malasakit drove the urgency to find better solutions for challenges Filipinos face every day. Firstly, convenience and accessibility have been at the forefront. In a country where traffic congestion is an everyday reality, Grab offers a reliable and efficient solution for their mobility and delivery needs. By integrating multiple services into one platform — our super app — we’re making it easier for Filipinos to manage their daily tasks, be it commuting, ordering food and everyday necessities, or sending parcels,” she said.
Trust built
Apart from that, she said hyper localization of services plays an important role, as Grab Philippines has tailored its offerings to be in tune with the local culture and preferences.
“For instance, our food delivery service includes a wide range of local cuisines, understanding the diverse culinary tastes across the Philippines. Similarly, in mobility, we have ensured that our services cater to various segments, from budget-friendly options to slightly premium choices,” she said.
Lastly, she maintained that the trust and safety measures they have implemented have been crucial, as they understand the importance of safety, both in terms of physical rides and online transactions.
“Our continuous efforts to enhance safety standards, whether through in-app protocols or driver training programs, we have built a strong sense of trust among our users,” Vera Cruz said.