Earlier this month, Grab held a product showcase, what they call “GrabX”, announcing a lineup of new products and features – essentially a roadmap for investors, partners and other stakeholders.
Some of us watched through the showcase, and here are some things we found interesting:
Generative AI
We all know that Grab has prioritised generative AI over the last year throughout the organisation. Rightly so because we all know generative AI will disrupt and it’s sensible to get the whole organisation to be more ready for that.
It was also a key part of the showcase, with Anthony Tan, CEO of Grab, emphasising that the company would “put AI at the core”.
Amongst the multiple AI capabilities showcased are “Merchant AI assistant” that helps speed up onboarding, generate visuals, analyse performance, and suggest ways to grow their business, as well as the “AI driver companion” which helps drivers find demand faster and navigate Southeast Asia’s unpredictable roads more smoothly.
There is also even a feature to detect unusual sounds during a ride and trigger alarms accordingly. Since the beginning, Grab has focused a lot on safety for ride hailing in Southeast Asia.
As you can see, these are not revolutionary, flashy technologies but tangible tools that help improve efficiency at each step of the user journey.
Further segmenting the Southeast Asian consumers
In Southeast Asia, observers and industry players often default to overly simplistic customer narratives: “rising middle class,” “affluent,” and so on. But the reality is more nuanced.
Grab’s earlier moves to segment its food delivery into Saver, Standard, and Priority tiers was a first step in catering to users with different preferences and price sensitivities —and it showed tangible results. MTUs (monthly transacting users) of Grab grew from 37.7 million in Q4 2023 to 43.9 in Q4 2024.
We have covered this strategy extensively in our Food delivery platforms in Southeast Asia 5.0 report.
From what we heard at the showcase, the company seems to be taking a deeper approach to customer segmentation: launching features like GrabFamily for Teens and Shared Saver.
These new features provide entry points for younger users, price-sensitive households, and under-served segments — as they kept repeating in the showcase: “For every you.”
The aim seems to be expanding Grab’s addressable market and deepening its user penetration in the region.
Investments in Grabmaps is starting to pay off
Finding that it is very expensive to pay Google Maps, which often did not have the critical localised features for Southeast Asia’s complicated cities, Grab decided to develop its own map a few years ago.
Grabmaps, as the system is called, is finally starting to show use cases beyond optimising routing and navigation for drivers and riders.
During the showcase, Grab introduced the “Dine Out Discovery” feature where GrabMaps played a key role. The feature helps users explore dining options and deals near them.
In a way, the feature has some resemblance to China’s Dianping, allowing users to search, filter, and discover restaurants, as well as access menus, reviews, and make reservations.
Continuous operational optimisation
As we’ve mentioned previously (and repeatedly), Grab’s delivery and mobility businesses are all about execution and constant optimisation of operational efficiency. These new features seem to provide some of the incremental benefits for users and service providers on the platform.
For example, the new delivery options (for big gathering and shared savers) allows Grab to batch more orders, increasing average basket size, as well as optimise delivery routes.
These new features and products (as well as the recent taxi licence granted in Singapore) are just the building blocks for Grab as it optimises efficiency, delivering a more reliable and affordable experience for its users.
Overall, Grabs latest features align with the broader themes we’ve been observing – optimising operational efficiency, expanding user base, and building a deeper ecosystem. But will this be enough?
With TikTok entering local services (as mentioned in Momentum Works Food Delivery 5.0 report), and Meituan making aggressive expansions overseas (it is launching in Brazil) – food delivery landscapes globally are being shaken up. Grab can’t afford to be too comfortable, despite leading in the region. Not to mention, we do not know yet how AI will disrupt the food delivery scene.
As we are bracing a lot of changes in the international trade and financial ecosystems, Grab seems to take a deliberate strategy to position itself through the cycles and volatilities, balancing growth, affordability, and margins.
