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Grab unveils its 2024 plan for double-digit growth
Thailand's Grab aims for double-digit growth in 2024 after achieving back-to-back profitability in 2023.
Grab Thailand, the leading ride-hailing and food delivery service, is launching its 2024 growth plan aiming to achieve a double-digit growth rate.
The company became profitable for the first time in 2022, reaching a value of 15 billion baht in revenues and a profit of 576 million baht, now it’s focusing on its strategic growth plan for 2024.
- Growth Targets: Grab Thailand aims for double-digit growth in 2024 after two consecutive years of profitability.
- Strategic Focus: The company plans to focus on active users, affordable services, advertising business, and personalized lending using AI technology.
- Innovative Services: Introduction of GrabCar SAVER and a yearly-based Grab Unlimited package to cater to different customer segments.
- Partnerships and Integrations: Collaboration with Suvarnabhumi Airport and integration of Alipay and Kakao Pay to serve international users.
Worachat Luxkanalode, country head of Grab Thailand, explained that the company is working to target double-digit growth after its success in 2023 and 2022. The new strategic growth plan of the company will focus on 4 different areas:
Expanding Active User Base
Grab plans to expand its active user base, with a particular focus on tourists, GrabUnlimited subscribers, and high-value customers. The introduction of a yearly-based Grab Unlimited package, in addition to the current monthly option, is expected to cater to high-spending users who spend 20% more than average users. With half of the company’s total food delivery users being Grab Unlimited subscribers, this move is anticipated to significantly boost revenue.
Affordable Services for New Segments
In response to rising living costs in Thailand, Grab is introducing more affordable services to attract new customer segments, such as university students and price-sensitive users. The launch of GrabCar SAVER, which offers reduced fares with compact vehicles, is currently being piloted in 20 provinces and is projected to be a new engine of growth for the company.
Advertising Business Expansion
Grab is also expanding its advertising business, moving beyond in-app ads to include offline advertising on its fleet cars. This diversification is expected to tap into the high growth potential of advertising-on-demand and become a key driver of profitability in 2024. Targeted sectors for these advertising efforts include travel, health and beauty, and fast-moving consumer goods.
Leveraging Artificial Intelligence for Personalized Lending
The company is leveraging artificial intelligence technology to offer personalized lending services. The lending business is set to raise the credit limit ceiling to several million baht, up from 100,000 baht last year, indicating a significant expansion of financial services offered by Grab.
The food delivery market in Thailand is very competitive and dynamic, with frequent changes in consumer preferences, regulations, and technologies. While Grab is currently the market leader, Line Man and Foodpanda are not far behind, and they are always innovating and improving their services to attract and retain customers. There are also other players in the market, such as Gojek, Robinhood, and Lalamove, that offer similar or complementary services.
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