Grab Thailand aims for a double-digit growth rate in 2024 after reaching profitability for the second consecutive year in 2023.
The company was profitable for the first time in 2022.
According to Creden data, Grab Taxi (Thailand) generated revenue of 15 billion baht in 2022, with a profit of 576 million baht.
Worachat Luxkanalode, country head of Grab Thailand, said the company was targeting double-digit business growth after its profits last year improved on the level recorded in 2022.
The company was the first player in the ride-hailing and food delivery service to make a profit.
Overall in 2023, Grab Thailand made an impact on users by helping them save 4 billion baht by subscribing to its Grab Unlimited package. It helped its drivers increase their earnings by 10% and the number of new small merchants in its system rose by 32%.
In 2024, Grab is focused on four areas, one of which is active users. Grab said it remains committed to serving its core user base, including tourists, GrabUnlimited subscribers, and high-value customers.
"We will offer a yearly-based Grab Unlimited package apart from the current monthly package. This subscription base has high-spending users who spend 20% more than normal users. Out of the company's total food delivery users, half are Grab Unlimited subscribers," Mr Worachat said.
In 2023, its average order value (AOV) was at over 200 baht in food delivery, and AOV increased 17% from 2020.
The second area it will focus on this year is offering greater affordable services to tap new customer segments, like university students and price-sensitive users in response to higher living costs in Thailand.
One example of such a service is its introduction of GrabCar SAVER, which offers reduced fares of up to 15% with compact vehicles, currently piloting in 20 provinces.
"SAVER users will be our new engine of growth," Mr Worachat added.
He said that Thailand's online food delivery business might be flat overall, but Grab continues to grow with loyalty customers and fewer price-sensitive users.
The third area is its advertising business, by expanding from advertising on its app to include offline ads, such as ads on its fleet cars. Users can order such products via its app.
Mr Worachat said that advertising-on-demand has high growth potential and can become a key driver of Grab profitability in 2024. Travel, health and beauty, and fast-moving consumer goods are among the targeted advertisers.
In the fourth focused area, the company is leveraging artificial intelligence technology to enable it to offer personalised lending. Its lending business will also raise the credit limit ceiling to several million baht, up from 100,000 baht last year and a previous level of 20,000 baht.
Grab will also become an official partner of Suvarnabhumi Airport.
"This is a commercial deal in which we invested and share revenue with Airports of Thailand. In 2023, our foreign tourist usage increased 139% and we see a two-times increase in the airports," Mr Worachat added.
Furthermore, Grab financial services have integrated Alipay and Kakao Pay e-payment systems, offering payment options for international users.
Mr Worachat cited the e-Conomy SEA 2023 report which stated that by 2025 Thailand's digital economy could reach US$49 billion of gross merchandise value, up from $36 billion in 2023.
The company is still not interested in applying for a virtual bank licence, he added.
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