💡 How Grab beat Uber
Get Hyper Localised
A short strategy playbook behind the world’s fastest growing companies.
In each edition you’ll get:
Game Plan: What is the Strategy?
The Recipe: How did it work?
Deep Dives: Where can I find out more?
Think of it as your go-to source for compact strategy insights, landing directly in your inbox.
Alright, let us get into it!
Game Plan
Strategy in a Nutshell
Grab was once dubbed the Southeast Asian Uber, kicking off its journey in 2012 thanks to Anthony Tan (not me) and Tan Hooi Ling.
So, when the real Uber decided to step into the Southeast Asian ring in 2013, many expected Grab to be quickly knocked out. But,nope! After a saga that lasted more than half a decade, Grab stood victorious, with Uber selling their SEA business to them.Â
💡 Strategy Playbook: Tailor your product to the market… if not someone else will.Here's how they did it.
The Recipe
Three Ingredients for Success
1. Get hyper-localised
Southeast Asia has a vibrant tapestry of cultures, with over 1,000 native languages and a non-homogenous market.
Grab recognises this and tailors regional rollouts instead of copy and pasting strategies. True, it is not a scalable strategy, but it is a winning one. Here's a peek at how Grab tailored its strategy:
💵 Cash is King: Recognizing the cash-dominant economy of Southeast Asia, Grab welcomed cash payments right from the start in 2012, while Uber played catch-up three years later.
🛵 Two Wheels over Four: In the traffic-jammed streets of Southeast Asia, motorcycles zip through faster than cars. Grab introduced GrabBike in 2014, giving them a two-year head start over Uber.
By focusing on what users really needed rather than banking solely on their brand, Grab raced ahead.
2. Strategic Alliances
In the world of startups, cash might be king, but the right partnerships are important too.
Capital is a commodity and Grab didn't just look for investors; they sought allies who brought more to the table than just money.
By aligning with local power players across the regions they entered, Grab secured not just funds but invaluable local insights and licenses, a stark contrast to Uber's strategy of relying on American dollars and expertise.
From government-linked Vertex Ventures in Singapore to giants like DiDi in China and Toyota in Japan, Grab's investor roster reads like a who's who of regional influencers.
3. Go Hard & Go Fast
Grab moved fast in their early years. They expanded their core ride-hailing service across six countries within three years of launch. But they didn't stop there.Â
They quickly diversified into verticals like payments and courier services, always staying one step ahead of Uber.
This strategy of rapid expansion and diversification positioned Grab perfectly to capitalize on any missteps by their competitors.
When Uber stumbled in 2017 amidst a whirlwind of scandals, Grab was in the perfect position to deliver the final blow by acquiring Uber's Southeast Asian business.Â
Deep Dives
Three resources for the Curious Minds
1. In-depth documentary of Uber vs Grab
"They were 24 by 7 focused on the regional market, they had people on the ground, they had engineering team on the ground and their decision making could be a lot faster than ours just because of the distance"
2. Grab Pre-SPAC investor presentation here
A deep dive into the Grab business model, with hyperlocalisation taking up a full section
3. The landmark deal that signals the defeat of Uber in SEA - here
Not a complete failure for Uber as they take a 27.5% stake in Grab, allowing them to reap the benefits of Grab's growth
And that’s it for this week!
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— Anthony 🚀