BUZZ! GrabCar/GrabTaxi Is Not Making Money At All

 

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Natalia Bautista of GrabCar Philippines

 

GrabTaxi is becoming a household name among the tech savvy in Southeast Asia. At least in Singapore, it’s probably the best app for booking taxis.

Yet you wonder how long the good times will last. The startup – which covers the GrabTaxi, GrabCar, and GrabBike services – is embroiled in a tough fight against Uber and Go-Jek for supremacy, which means spending lots of money to woo drivers and commuters.

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It’s a well-worn tactic: raise more money than your competitors, and spend it all to attract customers. To hell with profitability.

The hope is that when the dust settles and the financing runs out, you will have a sizable market share on which to bolster your bottom line and build your empire.

Is GrabTaxi succeeding in this enterprise? And how does GrabTaxi make money? Let’s find out.

How big is the business?

In short, pretty big in terms of usage. Here are some numbers to chew on:

app downloads grabtaxi

2bookings per second grabtaxi

mau grabtaxi

registered users grabtaxi

Two things jump out:

  • The firm’s growth shot upwards after it got backing from venture capital firms, although it seemed to have slowed recently.
  • It did seven bookings a second in May, or about 18.1 million bookings a month.

Using these figures, we can arrive at a rough estimate of how much money it is set to make in 2015.

But first, how does it make money?

A GrabTaxi spokesperson tells Tech in Asia:

GrabTaxi generally receives a fee from drivers across its various services, such as GrabTaxi, GrabCar, and GrabBike. Drivers deposit credits into an account with GrabTaxi, and the corresponding amount is deducted for every booking they complete.

The company is tight-lipped about the exact fees it collects today, but in the past it disclosed that it extracted S$0.30 (US$0.20) out of each ride in Singapore, THB 25 (US$0.70) per ride in Thailand, between five to ten percent of the taxi fare in Malaysia, and PHP 70 (US$1.48) per passenger in the Philippines.

Sounds convoluted, I know. And it’s a tad odd that the service takes a smaller chunk out of every ride in Singapore than elsewhere. Let’s take this with a pinch of salt.

So, how much moolah is it making?

Without official numbers, we’ll have to make do with a back-of-the-envelope calculation.

Fortunately, we have enough public information to go on. ACRA records show that GrabTaxi Holdings, which represents the collective entity, made about S$892,000 (US$632,000) in 2013. The figure increased to S$3.84 million (US$2.72 million) the year after.

Combine this with official information on the number of bookings it does per second, and you’d get an estimate for its expected revenue in 2015, which is around S$21 million (US$14.9 million). This spreadsheet explains how I derive the figure.

PosterOven-20150629184158

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But is it profitable?

Anthony Tan, Founder and Group CEO of GrabTaxi

The answer is likely no. ACRA records show that the company’s earnings before interest and tax stood at negative S$21.8 million (US$15.5 million). It raised a massive US$350 million round in August, which means it’s still locked in a spending war to win the hearts of customers against the likes of Uber and Go-Jek.

Much of its expenses will come from research and development, as well as marketing and promotions. GrabTaxi tells me that drivers are expected to cover their own costs, which include fuel and car rental or purchase.

GrabTaxi doesn’t just dole out free or discounted rides to commuters. It rewards drivers for using the app too. I heard from a driver last year that at one point the company was giving out between S$6 (US$4.30) to S$8 (US$5.70) per ride in Singapore. With the number of bookings it does, such incentives could cost the firm millions each month.

All prominent taxi apps in the region are running such promotions. It’s crazy. According to acab driver, rival app Hailo gave out S$160 (US$113) for the first 40 jobs done by a driver between June 1 and June 15 this year, and S$100 (US$71) for the next 20 jobs.

Can it ever be profitable?

I don’t think this will happen in the next couple of years at least. The transportation app war has only just begun. Everyone’s going up against a well-resourced Uber, which makes far more money (US$2 billion expected this year), and takes a larger chunk of money out of every ride (20 percent), according to Recode.

But beyond that, it’s possible. All that insane spending has to wind down. GrabTaxi will need to work on raising its revenue per ride, which might be challenging given how price-sensitive consumers in Southeast Asia’s emerging countries are.

My bet is on consolidation. I don’t see why it should continue slugging it out in isolation. There’s no real benefit to it existing as an independent company. A merger with Didi Kuaidi could make a ton of sense. It’s probably going to happen: Didi was an investor in GrabTaxi’sUS$350 million round.

This is an original article of TechInAsia, to visit the original page  CLICK HERE!

 

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About The Editor-In-Chief of Think Philippines!

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Edwardo Miguel Guevarra Roldan

  • Managing Partner at Princeton Business Initiative
  • Lead Convenor of Isang Samahan, Isang Pilipinas (ISIP) and Think Philippines!
  • Agency Manager at Fortune CARE Health Maintenance Organization (HMO)
  • Financial Investment Advisor at Rampver Strategic Advisors

(+63) 927 646 0088 WhatsApp/Viber/Philippine Mobile Number

edwardomiguelroldan@gmail.com

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TECH BUZZ! GrabTaxi/GrabCar Is Planning To Join The Philippine Stock Exchange (PSE) | Think Philippines!

MANILA, Philippines – My Taxi Philippines Inc., the company behind taxi booking service app GrabTaxi, is looking to list on the Philippine Stock Exchange (PSE) as it plans to expand its service in the country.

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GrabCar Philippines country manager Natasha Bautista told reporters yesterday the company intends to hold an initial public offering (IPO) as part of its plan to grow in the country.

“That’s the mission. We want to do it but we can’t say when,” she said.

Natalia Bautista of GrabCar Philippines

Natalia Bautista of GrabCar Philippines

For now, the company is focused on expanding its private vehicle hiring service GrabCar after receiving its accreditation as a transportation network company (TNC) from the Land Transportation Franchising and Regulatory Board.

GrabCar is the first to complete all requirements and receive full accreditation as a TNC following the Department of Transportation and Communications’ move to accommodate mobile app-based vehicle booking services by creating a new classification for them.

The requirements for TNC accreditation include business permit, certificate of registration duly issued by the Bureau of Internal Revenue, business model proposal with fare and service charges and complaint mechanism against vehicle owners and drivers.

Natasha Bautista, photo from her Facebook

Natasha Bautista, photo from her Facebook

“With full accreditation, more Filipino commuters would be able to use GrabCar and be confident that we offer a legitimate and safe private hire service. We will now focus on rapidly expanding GrabCar service to serve more passengers across the Philippines,” Bautista said.

The plan is to make the GrabCar service available in two additional cities within the year.

Bautista said among the locations eyed for expansion are Cebu and Davao since GrabTaxi is already available in these areas.

GrabCar is currently available in Metro Manila, while GrabTaxi provides services in Metro Manila, Cebu, Davao, Iloilo, Bacolod and Baguio.

Aside from expanding GrabCar to new locations, the company is also looking to provide new payment options to passengers through Globe Telecom Inc.’s mobile money service GCash as well as through credit and debit cards within the year.

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GrabTaxi is currently the largest transport app in Southeast Asia, with more than 5.5 million downloads on mobile devices, 10 bookings made per second and more than 101,000 drivers registered within the network.

The app is available in 22 cities across six countries.

This is an original article published by Philippine Star last July 8, 2015 and was edited by our EIC on August 20, 2015.
To read and check the original article, kindly click : HERE!

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About The Editor-In-Chief of Think Philippines!

1
Edwardo Miguel Guevarra Roldan

  • Managing Partner at Princeton Business Initiative
  • Lead Convenor of Isang Samahan, Isang Pilipinas (ISIP) and Think Philippines!
  • Agency Manager at Fortune CARE Health Maintenance Organization (HMO)
  • Financial Wealth Planner at FWD Life Philippines
  • Financial Investment Advisor at Rampver Strategic Advisors

(+63) 927 646 0088 WhatsApp/Viber/Philippine Mobile Number

edwardomiguelroldan@gmail.com

http://www.fb.com/ThinkPhilippinesBlog

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To post articles here at Think Philippines, you may email it to: isangsamahanisangpilipinas@gmail.com or by simply commenting it on the field provided below.

Thank you for supporting us

 

TECH BUZZ! GrabTaxi Successfully Raised $400m In Fresh Funding To Beat Uber | Think Philippines!

This article originally appeared at Tech In Asia.

  • grabtaxi raises $250 million

    Southeast Asia’s leading transportation app GrabTaxi now has new ammunition to battle against Uber and Go-Jek. The Singapore-headquartered startup has raised US$400 million in a round led by China Investment Corp (CIC), China’s sovereign wealth fund, according to theWall Street Journal.

    CIC, a big investor in commodities, is putting more money into startups lately. The US$740 billion fund has backed Didi Kuaidi, GrabTaxi’s equivalent who is leading the Chinese market. Didi Kuaidi is said to be worth US$15 billion.

    With the new round, GrabTaxi is said to be worth between US$1.6 billion and US$1.8 billion post-money. Go-Jek, which is leading GrabTaxi in Indonesia in on-demand motorbike transportation, recently pulled a PR stunt by hiring 16,000 drivers at a sports stadium.

    GrabTaxi, meanwhile, has been aggressively poaching Uber drivers over to its platform. Its product team appears to be underperforming though, with its app widely perceived as being inferior to Uber’s. This perception wasn’t helped by news of its high-profile CTO’s departure after just one year at the helm.

    Tech in Asia is reaching out to GrabTaxi for comment. The company will release a full statement shortly.

    Source: The Wall Street Journal




    About The Editor-In-Chief of Think Philippines!

    1
    Edwardo Miguel Guevarra Roldan

    • Managing Partner at Princeton Business Initiative
    • Lead Convenor of Isang Samahan, Isang Pilipinas (ISIP) and Think Philippines!
    • Agency Manager at Fortune CARE Health Maintenance Organization (HMO)
    • Financial Wealth Planner at FWD Life Philippines
    • Financial Investment Advisor at Rampver Strategic Advisors

    (+63) 927 646 0088 WhatsApp/Viber/Philippine Mobile Number

    edwardomiguelroldan@gmail.com

    http://www.fb.com/ThinkPhilippinesBlog

    Note :

    To post articles here at Think Philippines, you may email it to: isangsamahanisangpilipinas@gmail.com or by simply commenting it on the field provided below.

    Thank you for supporting us

VIRAL : LTFRB Stops Uber And Announced Their New Car Service App Called “Premium Taxi” | Think Philippines!

This article originally appeared at http://www.yugatech.com/news/ltfrb-stops-uber-then-announces-a-new-car-service-called-premium-taxi/#sthash.jHZGkD17.dpuf while some of the content was excerpted from the personal facebook page of Mr. James Deakin.

The dance between Land Transportation Franchising & Regulatory Board (LTFRB) and Uber has been around for quite a while now with LTFRB wanting to shut down the car service company due to lack of proper accreditation, among other things. Fast forward to just recently, LTFRB announced that it will hold a consultation of sorts regarding new franchises for a car service called Premium Taxi. Could the two instances be just a coincidence?

ltfrb-logo
READ MORE : A Sneak Peek Inside What Most People Dubbed As The Best HMO Plan In The PHL | Think Philippines!

Late last month, LTFRB on its page posted an invitation for interested parties for a “public consultation” that will talk about the issuance of new franchises for Premium Taxi. Premium Taxi, according to them, is a car service that requires a  “four- or five-door automobile, sedan type, with engine displacement of 2000cc or higher (or its equivalent, if electric-, hybrid-, or alternate fuel-Powered vehicle)” that comes with the following operating conditions as per DOTC:

1. The operator must have at least twenty (20) premium taxi units in his/her fleet;
2. All vehicles must be brand-new at the time of franchise application;
3. All vehicles must be in color set by the LTFRB (Note: It is proposed that the color will be black);
4. All vehicles shall have a maximum age of 7 years;
5. All vehicles must be equipped with a GPS vehicle tracking and navigation device;
6. All vehicles must be equipped with an on-board electric taxi fare payment device capable of processing payments made with credit card or debit card;
7. The operator must have a facility for booking and dispatching by way of an online or smartphone-based application; and
8. The operator must have his/her own workshop and depot with a space of at least 15 sq.m. per vehicle.

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With these happenings, netizens can’t help but think that the reason why Uber (and even GrabCar) have been under fire and are being kept under the radar of LTFRB and DOTC was because of this pending project that they were planning from beginning.

For more information on the Premium Taxi, you may view the draft of the Memorandum Circular from LTFRB’s page.

File illustration picture showing the logo of car-sharing service app Uber on a smartphone next to the picture of an official German taxi sign

READ MORE : UP CLOSE! Understanding HMO/Health Card In 10 Minutes | Think Philippines!

What’s your take on this subject? The comments section awaits.

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This article originally appeared at http://www.yugatech.com/news/ltfrb-stops-uber-then-announces-a-new-car-service-called-premium-taxi/#sthash.jHZGkD17.dpuf while some of the content was excerpted from the personal facebook page of Mr. James Deakin.


About The Editor-In-Chief of Think Philippines!

1
Edwardo Miguel Guevarra Roldan

  • Managing Partner at Princeton Business Initiative
  • Lead Convenor of Isang Samahan, Isang Pilipinas (ISIP) and Think Philippines!
  • Agency Manager at Fortune CARE Health Maintenance Organization (HMO)
  • Financial Wealth Planner at FWD Life Philippines
  • Financial Investment Advisor at Rampver Strategic Advisors

(+63) 927 646 0088 WhatsApp/Viber/Philippine Mobile Number

edwardomiguelroldan@gmail.com

http://www.fb.com/ThinkPhilippinesBlog

Note :

To post articles here at Think Philippines, you may email it to: isangsamahanisangpilipinas@gmail.com or by simply commenting it on the field provided below.

Thank you for supporting us