Grab, the top Southeast Asian “ride-hailing” company, slashes 1,000 jobs
Grab, the leading “ride-hailing and food delivery” app in Southeast Asia, has announced plans to reduce its workforce by 1,000 employees, which accounts for approximately 11% of its total workforce. The company’s CEO stated that these job cuts are necessary to lower costs and ensure the long-term affordability of their services.
Grab, headquartered in Singapore, offers a range of services, including deliveries, rides, and financial services, in eight Southeast Asian countries. In 2018, Grab acquired the regional operations of its US-based competitor, Uber.
In an email to employees, CEO Anthony Tan emphasised that these job cuts are not a shortcut to profitability. He highlighted the rapid pace of technological advancements, such as generative AI, and the increasing costs of capital, which directly impact the competitive landscape of the industry.
Known as the “Uber of Southeast Asia,” Grab operates as a super-app, providing its services across the region in countries like Malaysia, Singapore, Vietnam, the Philippines, Singapore, and Thailand. The company previously underwent job cuts in 2020 due to the effects of the COVID-19 pandemic.
The announcement of job cuts by Grab follows a trend observed in the gig economy worldwide, where other companies have also reduced their workforce. For instance, Indonesian ride-hailing firm GoTo, Grab’s rival in Southeast Asia, cut around 12% of its employees in 2020 and an additional 600 jobs in March. Just Eat, a food delivery company, announced in March its plans to eliminate 1,870 jobs in the UK due to a sales slowdown, primarily by transitioning from employing couriers directly to using contractors.
Similarly, the US ride-hailing app Lyft disclosed its intention to cut over 1,000 jobs, representing more than 25% of its workforce, in April while also freezing the recruitment of 250 vacant positions. These actions reflect the challenges faced by gig economy companies amid evolving market dynamics and cost considerations.
About The Author
