Grab plans to enable customers to pay merchants using GrabPay in Q4

[weijian]

Opening a thread for Grab.

Grab plans to enable customers to pay merchants using GrabPay in Q4

GRAB on Wednesday launched its new peer-to-peer fund transfer feature that enables consumers to transfer GrabPay Credits to one another. It also plans to further develop the technology to enable payment for merchant services beyond transportation via GrabPay, its in-app mobile wallet.

http://www.businesstimes.com.sg/technolo...bpay-in-q4

[dzwm87]

It wasn't never meant to be a pure transportation play.
On a larger picture, it could possibly make sense as to whether heavy ride-hailing subsidy is sustainable or not.

[weijian]

It wasn't never meant to be a pure transportation play.
On a larger picture, it could possibly make sense as to whether heavy ride-hailing subsidy is sustainable or not.

hi dzwm87, welcome back.
I would argue that it was evolution rather than "original intent". I believe the founders meant it to be a pure transportation play, but practice evolution played a part. If not, how to explain the name change from "MyTeksi" --> "GrabTaxi" --> "Grab"?

An interesting interview with 1 of Grab's founder:



Grab co-founder Tan Hooi Ling happy to stay low-key

http://www.sgsme.sg/news/startups/grab-c...ay-low-key

[weijian]

Grab secures US$700m in debt financing to build S-E Asia's largest fleet

BANKS have emerged the latest players in ridesharing.

On Friday, Singapore-headquartered ridesharing company Grab announced that it has secured debt facilities of up to US$700 million from "leading global and regional banks" - the largest ever debt financing round raised by a South-east Asian startup. The names and number of the participating banks were not disclosed. When asked if venture debt was among the debt facilities secured - that is, a loan that may come with warrants or rights to purchase equity in the borrowing company - Grab would not comment.

http://www.businesstimes.com.sg/transpor...gest-fleet

[BRT]

is there a grab thread? idk so i post here.

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Lee Der-Horng, director of the NUS-LTA Transport Research Centre, hailed Grab's latest financing and deepened partnership with SMRT as "very influential and impactful". He told BT: "Given this new development, the difference between Grab-SMRT and Uber-Comfort is becoming very clear."

In August, taxi giant ComfortDelGro announced that it has begun talks over a strategic alliance with Uber, which may include a collaboration in relation to the management of fleet vehicles and booking software solutions in Singapore.

Prof Lee said: "Uber-Comfort has thousands of unhired vehicles. Grab is, however, the opposite. The market is saying that Grab's fleet utilisation is well above 90 per cent, which is spectacular. And now, Grab is going to grow their fleet further with the newly-raised US$700 million."

Just last month, Grab said that it has invested US$15 million in California-based driverless car technology startup, Drive.ai, in a move that will further accelerate its influence in the global land transport space.

While the Uber-Comfort alliance is not yet finalised, Prof Lee said he was sceptical about how it can compete meaningfully with Grab-SMRT. "Somehow, Grab's snowball effect is there."
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http://www.businesstimes.com.sg/transpor...gest-fleet

[weijian]

Micro-lending style? I reckon not too different from those non-bank licensed Ah Longs. Giving credit as a complimentary business to your main business (match riders to drivers) may not be a bad idea although not sure how much competitive advantage Grab has with regards to using its "transport movements, payment transactions and consumer behavior". Would it mean that they can try to track the borrower down if they don't pay up? Or does paying for my rides promptly or having a high rating as a customer/driver make me a lower risk borrower?

Ride-hailing firm Grab expands into lending in Southeast Asia via new venture

Grab will use its data on transport movements, payment transactions and consumer behaviour to assess customers’ creditworthiness at its new financial services enterprise

http://www.scmp.com/tech/enterprises/art...ew-venture

[opmi]

Micro-lending style? I reckon not too different from those non-bank licensed Ah Longs. Giving credit as a complimentary business to your main business (match riders to drivers) may not be a bad idea although not sure how much competitive advantage Grab has with regards to using its "transport movements, payment transactions and consumer behavior". Would it mean that they can try to track the borrower down if they don't pay up? Or does paying for my rides promptly or having a high rating as a customer/driver make me a lower risk borrower?

Ride-hailing firm Grab expands into lending in Southeast Asia via new venture

Grab will use its data on transport movements, payment transactions and consumer behaviour to assess customers’ creditworthiness at its new financial services enterprise

http://www.scmp.com/tech/enterprises/art...ew-venture

"transport movements, payment transactions and consumer behavior" - like make sure the borrowers goes to work every day...instead of spending his time at internet cafe or koon-ing at home..

likely to do predatory payday loans - help fund you until payday...

[Big Toe]

Grab has some distinct advantages when it comes to rolling out new businesses.
For one it has a large reach of drivers as well as commuters. Commuters use the service daily.
As for accessing creditworthiness according to travel pattern, that's a tough one. Not sure how grab can track the payment patterns and consumer behavior since its payment service may not widely be accepted(yet).

Maybe can tell where the borrower stays and gauge according to that. Also money collection will be easier
once data of the places the borrower frequents becomes available.

Just a wild thought, maybe to mitigate the risk of default, can ask the driver to give out micro loans to the passenger or vice versa.
More of a matching service rather than providing the loans themselves. An enabler. Much like Alibaba when it started.