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Grab overtaking Uber: The David versus Goliath of Ride-Hailing App in Southeast Asia
Alice Tsz Ling Tam,Alison Wai Ting Lam,Katrina Ngai Han Chiu,Leona Ying Tong Chen,Haipeng Shen,Wei Zhang Academy of Asian Business (AAB) 2018 Academy of Asian Business Review Vol.4 No.2
This case study on Grab, a locally founded ride-hailing startup in ASEAN, traces its development from its humble start to its victory of ousting Uber in 2018. This case study uncovers the elements that contributed to Grab’s success, providing inspiration on how Asian companies can possibly prevail over the more established Western counterparts despite of great adversity. The report compares the development of both Grab and Uber, followed by a discussion of turning points on how Grab played out the battle with Uber across several ASEAN countries without central jurisdiction to favor it. Factors behind the success of Grab for each turning point are closely examined. Potential difficulties faced by Grab and recommendations to solve the problems are also identified. Grab manifests the spirit of “think global and act local” to succeed in the sharing economy by putting feet on the ground and resolving real “pain points” for consumers. While there are increasing number of companies with a sharing economy business model, the conventional approach of offering a low price to customers and a high pay to employees may not guarantee success for a business anymore. This case study of Grab aims to provide insights for these enterprises to conquer the market in the competitive modern business world.
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