Grab is a Singaporean technology, e-commerce, and delivery service-providing company. Tan Hooi Ling and Anthony Tan founded the tech and e-commerce company in 2012. Today, we’ll discuss the PESTLE analysis of Grab; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Grab
Some of the main political factors in the Grab PESTLE analysis are as follows;
Government Partnership & Alliance
According to an estimate, Grab is operating its e-commerce and delivery service providing business in approximately 8 Southeast Asian countries. The tech and e-commerce company should develop alliances with various governments and comply with the laws and regulatory requirements. Coordination and collaboration with various political and government authorities help the company to smoothly perform various operations.
Political Environment
According to an estimate, approximately 84% of Grab’s revenue comes from countries that have flexible policies for ride-sharing and delivery service-providing firms. It makes the company’s revenue and profitability highly vulnerable to the political environment of the countries. In order to reduce the risk factor, Grab should closely collaborate with the government and political institutions to influence their policies in the company’s favor.
Economic Factors Affecting Grab
Some of the main economic factors in the Grab PESTLE analysis are as follows;
High Consumer Spending
Grab’s business is highly susceptible to the income level and consumer spending habits of the people in the particular country. According to an estimate, the middle class has been increasing in Southeast Asian countries along with the consumer spending habit. It is a great growth sign for the tech, e-commerce, and delivery service-providing company to experience a potential increase in revenue, sales, and profitability.
Economic Crisis
The economic environment of the country has a great impact on Grab’s business; For instance, tax laws, regulations, inflation rate, and others. Various international and political factors could cause the economic crisis. When people have limited disposable income due to economic uncertainty and a higher unemployment rate, then it decreases overall sales and negatively impacts the revenue and profitability of the tech brand.
Social Factors Impacting Grab
Some of the main social factors in the Grab PESTEL analysis are as follows;
Online Shopping Trends
The online shopping trends have been increasing significantly for the past few years. They have given a significant boost to the tech and delivery service-providing firm. Grab has a very large service portfolio and it amplifies the customers’ market reach and accessibility of the tech brand; like ride-sharing, transportation, delivery, package delivery, online shopping, online payment, grocery shopping, and others.
Motorcycle Mobility
Motorcycle delivery and motorbike rides are included as the key services in the service portfolio of Grab. On the other hand, motorbike is a very popular mode of transportation in the developing Southeast Asian countries due to simple, easy, and cost efficiency. The inclusion of bike-ride and bike delivery services helped the company to target a much wider customer market.
Technological Factors Affecting Grab
Some of the main technological factors in the Grab PESTEL analysis are as follows;
Advanced Technology
Grab invests a significant amount of capital resources on the latest and advanced technology. They are like AI (artificial intelligence), machine learning, algorithm updates, mapping, tracking tools, and various other technological tools and equipment. It helps the company to analyze the trends and patterns of the customer’s market and strengthen its market and brand position due to the latest technological competitive edge.
Over-Reliance on the Internet & Technology
Grab heavily relies on internet access and technological tools and devices for the entire growth and productivity of the company. Tech and e-commerce have no physical and tangible products and services to offer. However, heavy reliance on the internet and technology makes the earnings and revenue of Grab highly risky and it is negatively impacting the growth and technology of the company.
Legal Factors Impacting Grab
Some of the main legal factors in the Grab PESTEL analysis are as follows;
Regulatory Compliance
Grab complies with the regulatory requirements and transportation laws of the country. In fact, the company has successfully passed the legal and transportation requirements of various Southeast Asian countries to operate and run its business there.
Data Privacy Laws
Along with regulatory and transportation requirements, Grab also deals with the mass volume of private data of individual customers. It is obligatory for the tech brand to protect the privacy of individual users by making it safe and secure.
Environmental Factors Affecting Grab
Some of the main environmental factors in the Grab PESTEL analysis are as follows;
Green Initiative
Grab is highly careful and cautious about environmental sustainability and reduces the carbon footprint and impact on the environment. In fact, the company allows its customers to choose eco-friendly vehicles for rides and deliveries; or the regular ones. It shows the company’s commitment to environmental sustainability.
Conclusion: Grab PESTLE Analysis |PESTEL Analysis of Grab |External Environmental Analysis of Grab | Strategic Analysis of Grab
After an in-depth study of the PESTLE analysis of Grab; we have realized that Grab is the leading Southeast Asian tech, e-commerce, and delivery service-providing platform. If you are learning about the Grab PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
