Robinhood, the commission-free application for on-demand food delivery, hotel booking and other services, will cease operations on July 31, Siam Commercial Bank announced on Tuesday.
SCB X Plc, the holding company for the bank and its affiliates, said that Robinhood had completed its mission to support merchants, riders and small businesses throughout the Covid-19 pandemic.
The board of SCB X on Tuesday approved the decision to shutter the loss-making business run by the subsidiary Purple Ventures Co Ltd.
Purple Ventures reported revenue of 724 million baht in 2023, up 34% year-on-year, but its loss widened to 2.1 billion baht from 1.9 billion the year before, as it continued to expand services while using subsidised pricing.
“The cessation of services aligns with a sound capital management framework aimed at maximising shareholders’ returns,” SCB X said in a statement to the Stock Exchange of Thailand.
“This decision will not affect the SCBX Group’s strategic plans or its commitment to developing the business in accordance with its mission to become a leading financial technology group.”
The Robinhood app attracted millions of downloads and a large customer base, particularly in Bangkok. While it did not charge commission fees in core areas such as food delivery and hotel booking, it charged modest transaction fees, as well as platform fees for other services such as ride hailing, though they were lower than those of rivals such as Grab.
“In the span of four years, particularly during the peak of the Covid-19 crisis, the Robinhood application has played a pivotal role in mitigating the challenges faced by merchants and businesses in Bangkok, its surrounding metropolitan areas, and key tourist destinations,” SCB said in a statement.
“Robinhood has steadfastly supported these establishments until they could resume normal operations. Furthermore, the platform has been instrumental in creating jobs for tens of thousands of riders during difficult times, ensuring fair treatment and significantly enhancing their livelihoods.
“For customers, Robinhood has served as a mediator for providing a variety of choices at equitable prices, becoming a platform of kindness throughout the national emergency with full financial support from the SCBX Group.”
The company said that from July 31 at 8pm, customers will not be able to use the Robinhood application permanently. Merchants, riders and drivers can use the Robinhood Shop, Robinhood Rider and Robinhood Driver applications for transactions until July 31 at 8pm, it added.
Further information is available at the Robinhood call centre at 02-777-7564.