UA&P-CRC study shows Grab PH patronage pushes economic growth
THE University of Asia and the Pacific (UA&P)’s Center for Research and Communications (CRC) study, titled “The impact of ride-hailing and on-demand delivery services on the Philippine economy: A focus on Grab Philippines,” ascertained that Grab’s economic influence was evident in its unique ability to amplify economic returns.
For every peso spent on the Grab platform, an astounding additional P3.42 was injected into the national economy. This multiplier effect surpassed industry benchmarks, positioning Grab as a leader in economic contribution within the transportation sector.
The fundamental idea was that with a hypothetical P100-GrabCar ride, an additional P342 was generated for the economy.
The study found that consumer patronage of Grab services accounted for 0.07 percent to 0.3 percent of the national gross domestic product.
From 2019 to 2021, Grab’s estimated total economic contribution ranges from P37 billion to P165.6 billion, reinforcing its position as a key contributor to the national economy.
The household income multiplier of 0.44 also suggested that every additional peso spent on Grab’s services stimulated an increase of P0.44 in the national household income.
This implied that an extra peso spent on Grab services extended beyond just covering the actual ride or meal. It contributed an additional 44 centavos to household incomes for laborers in the ride-hailing and on-demand delivery industry nationwide.
With this multiplier value for household income, Grab Philippines contributed 0.10 percent to 0.17 percent to the total family income from 2019 to 2021, which was equivalent to between P23.8 billion and P40.3 billion.