An overview of GrabTaxi's strategy and business.

1. 1|
GRABTAXI’s Strategy
In Southeast Asia Context
What’s going on and what’s ahead?
Vincent Chan – Dec 2015

2. 2|
UBERvsGrabtaxiinSoutheastAsia
Started by competing with taxi offering UberBlack limousine Started by partnering with taxi
Aggresive + Corporate-ish Friendly + Neighbourhood-ish image
Globalization Strategy Localization Strategy
Seen as hostile competitor by taxi operators, regulators Work as partner with regulators, taxi operators, community
Majority of fleet comprises of private cars currently Larger car fleet with taxis + private cars

3. 3|
http://blogs-images.forbes.com/liyanchen/files/2015/09/0908_uber-map2_2000.jpg
http://b-i.forbesimg.com/parmyolson/files/2013/11/top-3-messenger-apps-copy.jpg
The ride sharing competition may evolve similarly to social messaging app, with no global clear
winner but local leader in each region. Acquisition may occur (Eg. Facebook acquired Whatsapp) to
reduce competition and increase user base.
WhoisLeading?

4. 4|
SouthEastAsia
Anuniqueregion
Singapore
• Taxis are in low supply and high demand during peak hours
• Car ownership cost is unlikely to go down
• Public transport is barely coping with demand
• Government is supportive to reduce cars on road and improve taxi/ride sharing availability
• Mobile network and infrastructure are mature
Malaysia
• Taxis have bad reputation among locals and visitors with safety issue and service attitude
• Public transport is not well planned
• Traffic congestion is a problem
• Mobile network and infrastructure are developing
As a whole
• Each country has their own language and culture, coupled with different regulators.
• Western based companies are not able to penetrate South East Asia with a single unified
strategy.
• Market favours local players

5. 5|
Industry’sChallenge
Rivalry
among
existing
competitors
Threat of
new
entrants
Bargaining
Power of
Suppliers
Threat of
Substitutes
Bargaining
Power of
Customers
Moderate
Previously a low
upfront cost game,
attracting new players
Moderate
Taxi drivers are relying on
Grabtaxi’s large driver fleet.
Competitors do not have big
fleet at the moment
Moderate
Taxi operators may overhaul
their taxi booking app and
some users still use SMS
booking.
High
Customer has multiple
alternatives (Uber, EasyTaxi,
Taxi operators)
Moderate
Current rivalry within South
East Asia is moderate with
Uber and EasyTaxi
Provide more sign up bonus and
incentive to keep barrier of entry
high
Leverage on knowledge of local
market and fleet size to reduce the
effectiveness of competitors
Relentlessly grow fleet
size and upgrade taxi
job matching speed &
accuracy to keep
switching cost high.
Expand the functionality of
apps and product offering to
keep switching cost high.
Introduce reward system for
loyal customer Expand the functionality of
apps and product offering
SMS booking functionality
GrabTaxi’s possible
response strategy

6. 6|
Positioning,What’sNext? Global Market
Local Market
DiversificationSpecialization
Logistic Company
Transportation
Company
UberX
UberTaxi
UberEats
UberCargo
UberRush
GrabTaxi
GrabCar
GrabHitch
GrabBikeTaxi Operators
Taxi Hailing Platform
GrabTaxi’s current strategy is more likely to experiment
with new complementary service offerings that leverage
current strength in South East Asia
Expanding into global market
is unlikely at this stage with
limited funding to take on
competitors in their
established turf.

7. 7|
What’sahead?ProfitMarginRisk
Revenue
Cost
Revenue
Cost
Risk of Cost Increase
• Additional R&D & talents investment to remain
technologically competitive
• Potentially higher sign up cost and incentives to
acquire and retain drivers to maintain barrier of
entry
• Potential private fleet insurance requirement
• Potential change to classify driver as partial
employee
• Potential more cost for legal and lobbying fee
Pressure on Revenue
• Potential price war from competitors who may
introduce 100% revenue to be kept by drivers to
squeeze out competitors.
• Competitors to band together to create non-
GrabTaxi network
• Macroeconomic conditions
First mover advantage for South East Asia
Local market favours local player
Low cost of entry, Low CAPEX
Minimal infrastructure investment
Moving Forward

8. 8|
The3PillarsofFocus
SAFETYSPEED CERTAINTY
Superior App and Platform to ensure fastest ride matching
Continue to increase size of fleet
Adequate investment in IT infrastructure for growth
Data Analytics and data privacy safekeeping for users and drivers
Never compromise on strict taxi
driver screening during growth

9. 9|
Whilefocusingongrowth,
GrabTaxiisfacedwith
Constant pressure to
remain ahead of the curve
in matching taxi/ride to
demand
Customer may permanently
switch to other app which
can work faster, even by
seconds.
Drivers want the fastest
match possible.
Constant pressure to
improve customer
satisfaction, even not
within GrabTaxi’s
responsibility
Any dispute between
drivers and passengers will
be part of Grabtaxi’s
customer experience.
Risk of accidents and
criminal cases
Such events will create
negative publicity even
though it may not be within
control of the company.
Possible regulatory
change
Drivers may be considered
partial employees in the
future, demanding more
compensation.
Car insurance price may
increase.

10. 10|
FeedbackfromTaxiDrivers
withmeasaCustomer
Grabtaxi App has lesser
MIA passengers
compared to Comfort
App
Grabtaxi App has lesser
MIA passengers
compared to Comfort
App
I can now rent taxi from
taxi companies other than
Comfort. Lower rental
I can now rent taxi from
taxi companies other than
Comfort. Lower rental
I have to ensure my service
attitude is right, as customers
may rate me via the app
I have to ensure my service
attitude is right, as customers
may rate me via the app
Taxi Company’s APP: Whoever
fast fingers get the job.
Grabtaxi’s APP: Whoever
nearest get the job
Taxi Company’s APP: Whoever
fast fingers get the job.
Grabtaxi’s APP: Whoever
nearest get the job
With GrabTaxi’s booking, I know
where the customer want to go
before accepting, so I can plan
my route.
With GrabTaxi’s booking, I know
where the customer want to go
before accepting, so I can plan
my route.