Thailand

Grab plans to break even in Q4

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Mr Nithee (middle) and Mr Worachat (right) launched the “Amazing Thailand, Travel Confidently with Grab” campaign to promote tourism in Thailand and enhance the travel experience of local and foreign tourists.

Grab, the local operator of Southeast Asia’s super app, plans to break even by the fourth quarter as it sees itself on track to achieve group profitability through its “One Grab” synergies.

The company is also joining forces with the Tourism Authority of Thailand (TAT) to attract more tourists and help the country reach 25 million tourists by 2023.

Worachat Luxkanalode, country head of Grab Thailand, said: “We expect our EBITDA to break even ahead of our group target for the fourth quarter on the back of prudent spending and a rebound in the transport business. .”

The One Grab structure requires integrated collaboration and synergy of its businesses to increase operational efficiency and user stickiness on its platform. For example, ride-hailing users can enjoy discounts when ordering food.

The company’s ride-hailing services have rebounded in the wake of the pandemic, especially among tourists. Mr Worachat said Grab aims to have tourist customers soon account for 35 per cent of its total transport services, the same level as before the pandemic.

Travelers using Grab have increased by 25% in the first four months of this year, he said.

Mr Worachat said the company expected high growth in transport services this year.

To achieve its goal, the company hopes to attract more tourists to Thailand by providing Thailand travel content to users in eight Southeast Asian countries.

Mr Worachat said Grab was also integrating itself with Chinese super-app WeChat so mainland tourists could use its services.

The “Amazing Thailand, Travel confidently with Grab” campaign is a joint effort with TAT and is expected to promote tourism in Thailand among local and foreign tourists and boost the economy through promotions and engagement activities.

These activities include the launch of Grab & Go travel guides in English and Chinese. This travel guide brings together a selection of destinations, restaurants, festivals and events in Bangkok, Pattaya, Chiang Mai and Phuket.

Foreign tourists can find guides in the GrabCar Premium service or in various tourist destinations such as hotels, restaurants and TAT’s alliances.

Grab has hundreds of thousands of drivers, 1,000 of whom use electric vehicles (EVs). The company aims to have 10 percent of its fleet electrified within three years.

Mr Worachat said the company’s main revenues still came from food delivery and messenger services, followed by enterprise businesses such as transport, financial services and advertising. He added that the company had ended losses in its food business as customers spent more on orders.

Nithee Seeprae, TAT deputy governor for digital, research and development, said since the full reopening of Thailand’s borders, the agency has seen an exponential increase in foreign tourists, with 9.9 million foreign tourists so far this year.

“We expect 250 to 30 million tourists to visit Thailand this year,” Mr Nithee said.

Ten million foreign tourists came to Thailand last year.

TAT will also exchange data with Grab, which will allow TAT to analyze tourists’ behavior in a way that does not violate tourists’ privacy. TAT will also support travel content for Grab passengers.

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