Grab Thailand to break even before Q4
Grab Thailand, the local operation of the Southeast Asian super application, plans to break even before the fourth quarter as it sees itself on a path to group profitability through its “One Grab” synergy.
The company has also joined forces with the Tourism Authority of Thailand (TAT) to attract more tourists and help the country reach 25 million visitors in 2023.
“We expect to break even on our earnings before interest, taxes, depreciation and amortisation before the group target of the fourth quarter because of cautious spending and the rebound of the transport business,” said Worachat Luxkanalode, country head of Grab Thailand.
The One Grab structure calls for integrated collaboration and synergy of its businesses for operating efficiency and user stickiness on its platform. For example, ride-hailing users can receive discounts on food orders.
The company’s ride-hailing service rebounded following the pandemic, particularly among tourists. Grab aims to have tourist customers account for 35% of its total transport service soon, the same level as before the pandemic, said Mr Worachat.
He said that in the first four months of this year, the number of travellers who use Grab increased by 25%.
Mr Worachat said the company expected high growth in its transport services this year.
To achieve its target, the company wants to attract more tourists to Thailand by feeding Thai tourism content to its users in eight Southeast Asian countries.
Grab has also integrated itself with Chinese super app WeChat so that mainland tourists can use its service, Mr Worachat said.
The “Amazing Thailand, Travel confidently with Grab” campaign is a joint effort with TAT, and is expected to promote Thai tourism among local and foreign tourists as well as boosting the economy through promotional and engagement activities.
The campaigns include the launch of Grab & Go tourist guidebooks in English and Chinese language versions. The travel guide compiles a selection of tourist destinations, restaurants, festivals, and activities in Bangkok, Pattaya, Chiang Mai and Phuket.
Foreign tourists can find the guide book in the GrabCar Premium service, or in various travel destinations such as hotels, restaurants, and TAT’s alliances.
Grab has hundreds of thousands of drivers, of which 1,000 use electric vehicles (EVs). The company aims to have 10% of the fleet using EVs within three years.
Mr Worachat said the company’s main revenue still comes from food delivery and messenger services, followed by transport, financial services and enterprise business like advertising. He added that the company has ended losses from the food business thanks to customers’ higher spending on orders.
Nithee Seeprae, TAT’s deputy governor for digitalisation, research and development, said the authority has seen an exponential rise in foreign tourists since Thailand’s borders fully reopened, with 9.9 million foreign visitors so far this year.
“We expect to have up to 25-30 million visitors to Thailand this year,” Mr Nithee said.
Last year saw 10 million foreign tourists come to Thailand.
TAT will also exchange data with Grab, which will let TAT analyse tourists’ behaviour in a way that does not violate their privacy. TAT will also support tourism content for Grab passengers.