Grab receives additional US$300 mil investment from Invesco

[cyclone]

Grab receives additional US$300 mil investment from Invesco

Samantha Chiew 27/06/2019, 4:42pm

SINGAPORE (June 27): Local ride hailing and financial e-services platform Grab has received an additional investment of US$300 million ($406.3 million) from existing investor Invesco.

This brings the global independent investment management company’s total investment in Grab to US$703 million. Invesco earlier this year acquired OppenheimerFunds, which initially invested US$403 million in Grab in July 2018.

The latest capital injection puts Grab on track to meet its aim to raise US$6.5 billion in total capital beween June 2018 and the end of this year to solidify its position as a technology leader in Southeast Asia.

Justin Leverenz, team leader and senior portfolio manager (Invesco Emerging Markets), says, “We have been closely watching Southeast Asia and have every confidence in Grab’s ability to unlock new opportunities across on-demand mobility, delivery and financial services in the region. Grab is well-positioned, as a super app that is second-to-none in the region, to spearhead the evolution of user-driven technologies that will accelerate progress in Southeast Asia.”

More details in https://www.theedgesingapore.com/news/st...investment

[dreamybear]

I parked the article here instead of creating a new thread coz personally, I find it it time-consuming to scroll thru' the numerous existing threads. If the mods feel otherwise, pls feel free to adjust my post accordingly. Thx.

While I am not a user of food delivery apps/companies, I decided to test it out for my own learning purposes. Findings :
1. Deliveroo - delivery fee abt $4.50
2. Food Panda - delivery fees abt $2
3. GrabFood - need to download app, but according to website, the delivery fees range from $3-$5.

Pls note that I just tested using 1 or 2 scenarios so my findings may not be completely accurate.

Given the charges(revenue) vs operating costs, I think it's not easy for these companies to sustain their existing business model.

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Food Delivery Riders (2019) – How Much Can You Make as a GrabFood, Foodpanda or Deliveroo rider?
May 21, 2019

Forget about giving tuition or waiting tables. These days, the part-time job of choice is being food delivery riders. It involves plying Singapore’s roads, ferrying food or passengers to their destinations. It’s easy to see why this kind of driver job in Singapore is so popular right now.......

.....Deliveroo rider pay

The amount you can earn per delivery is indicated on the app, usually about $6 to $10 ($3 pick-up fee, $2 delivery fee, $X variable distance fee, plus incentives during peak times).

You can earn $1 to $2 more during peak hours between 11am to 2pm and 5pm to 9pm, and in certain locations. You are also entitled to tips. Generally, delivering in the CBD earns you more tips than suburban areas.

There is also a minimum total delivery fee, which is set each month based on customer demand. The current minimum total delivery fee as of 21 May 2019 is $5 per delivery.

Motorcycle riders can also make claims for ERP, petrol and parking. There’s also $1 extra for motorcycle riders.

Deliveroo also offers a $200 bonus for referring new riders, which is equivalent to making 40 deliveries, so make use of it if you have friends who’re interested......

....Foodpanda rider pay

You pay will be split into two components. Motorcycle delivery riders can expect to earn a basic hourly pay of about $9, or $9.50 for those riding in the CBD, with an additional $5 for commission for every weekday delivery made, or $7 on weekends. You can also claim for parking charges and ERP costs incurred.

Currently, Foodpanda is offering $550 sign-up bonus, which you will get if you:

-  Achieve Quest incentives – $300
-  Are referred by a friend – $250

.........

....GrabFood rider pay

You are paid on a per-delivery basis, the price of the delivery being displayed on the app. The base fee is $5 per trip, and surcharges will be added to that fee depending on the location and time. Grabfood has Zone Booster Incentives where you can earn up to $3.50 per trip on top of base fares and Quest Incentives, where if you complete a certain number of trips, you get varying incentives. Check out GrabFood’s incentive page for the latest incentives.

All things considered, expect to make about $6 to $10.50 per delivery. You also have the chance to earn incentives if you manage to hit trip targets during certain periods (eg. 70 trips on weekdays within a week, or 45 trips during the weekend) You can also make claims for ERP charges........


[Update 21 May 2019: Honestbee has stopped offering food delivery services as of 20 May 2019.] .........

Read more : https://blog.moneysmart.sg/career/food-d...roo-rider/

[CY09]

From what I heard, the fees Grab charges as "Delivery fee" to consumers is less than half of the price it pays to the delivery driver.

The excess is attempted to be covered by the higher cost of the food charged by the platform than vis a vis buying it at the store itself.

However I am skeptical that this price difference is enough to cover the difference to pay the excess.

So yea, the good times may not last.

[dreamybear]

A little insight into the financials of Grab... estimated 1.5 billion losses(2019) from a company valued at 14 billion.

Comparatively, Uber reported 1 billion of losses in 1Q2019 alone in its first quarterly announcement since IPO.
https://www.forbes.com/sites/bizcarson/2...a0ce6a6417

I think it wld be interesting to monitor the developments of Grab as it moves towards its IPO.
https://asia.nikkei.com/Business/Startup...PO-by-2023
https://www.pymnts.com/news/internationa...s-profits/

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"....The move to slash rebates comes amid reports of bottom line pressure for Grab. According to a December report by The Information, in end-2018, Grab had been internally projecting a 2019 annual net loss of about US$1.5 billion.

Accumulated losses from the entity GrabTaxi Pte Ltd, which likely does not fully reflect the business, stood at S$228.9 million in 2018, according to regulatory filings, Bloomberg reported in December. "

https://www.businesstimes.com.sg/garage/...from-march

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"Grab, the ride-hailing and food-delivery app in Southeast Asia valued at $14 billion, doesn’t want to be compared to Uber. But comparisons are inevitable. Both companies are backed by SoftBank, are unprofitable, and face strong competitors....."

https://www.theinformation.com/articles/...ns-of-uber