The impact of the on-going COVID-19 pandemic on taxi business worldwide is in complete opposite with that of the online food-delivery business. As the pandemic has proved to be a nightmare for all the ride-hailing firms, many companies have now initiated adopting new delivery businesses on their platform in a bid to mitigate their core business losses.


Asias Grab Holdings Inc. is one of the ride-hailing firms that went into a tailspin following the Covid-19 pandemic. The pandemic has proven to be a silver lining for the company as it emerged as a household name and the most valuable firm at over USD 14 billion during this time.


Around 150,000 of the company’s  drivers switched to becoming delivery men for people staying at home, making food delivery as the biggest business for the company.


As per the Grab’s data, it has a total of 198 million downloads, although it has yet to turn profitable and is yet to hit break-even. As coronavirus measures put 650 million people of South-east Asia under lockdown, Grab perceived the loss for its transport business.


In June, the Singapore headquartered company had to lay off around 360 employees, after slashing discretionary spending, though the same is just under 5 percent of its total employee headcount.


Chief executive officer of Grab, Mr. Anthony Tan who also co-founded it in 2012, said that food delivery has become as it used to be earlier, grocery delivery is expanding rapidly, cashless payments are growing exponentially, and these behaviors have changed permanently with or without a vaccine, making Grab a beneficiary.


Mr. Tan seems to be working strategically for the company’s future where users will at least partially work from home. The company, which has over nine million drivers, agents, and merchants, is also seeking a digital banking license in Singapore.


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