Grab Taxi Innovation: Disruptive Technology in the Transport Industry

Running Head: GRAB TAXI INNOVATION 1
GRAB TAXI INNOVATION
AUTHORS NAME
UNIVERSITY OF AFFILIATION

GRAB TAXI INNOVATION 2
Executive
In the transport industry like any other business industry, the customer is always at the center of
all the managerial processes forming the focal point at which the business operations revolves.
The firm will create products and services with the customers wants in mind. The taxi industry is
one of the fastest growing industry in Singapore, in order for the company to provide excellent
services, the industry is required to do an analysis of the current business and identify and
evaluate the existing products and services. Technology innovation has been embraced by most
of the taxi companies in the industry. Grab, a taxi company under study hopes to unveil the type
of the innovation it has used in its business, the importance of the innovation and the factors
affecting the business. The study also focuses on the porters five forces analysis of the grab
company and the importance of the innovation to the business.

GRAB TAXI INNOVATION 3
Table of contents
Executive.....................................................................................................................................................2
1.0 Introduction...........................................................................................................................................3
1.1 Background information....................................................................................................................3
1.2 Grab History......................................................................................................................................4
1.3 Company analysis..............................................................................................................................4
1.4 Factors affecting the industry............................................................................................................5
1.5 Driving forces....................................................................................................................................5
1.6 How does innovation affect the industry?..........................................................................................5
2.0 Type of innovation................................................................................................................................6
2.1 Bell curve..........................................................................................................................................7
2.2 Growth competitive advantage due to innovation..............................................................................7
2.3 The significance of innovation to the company.................................................................................8
3.0 Porter five forces analysis......................................................................................................................8
3.1 The potential threat of new market entrants.......................................................................................8
3.2 Threat of substitution.........................................................................................................................8
3.3 Supplier bargaining power.................................................................................................................9
3.4 Threats to buyers...............................................................................................................................9
3.5 The rivalry degree..............................................................................................................................9
4.0 Competitive advantage..........................................................................................................................9
4.1 Rise of users..........................................................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................10
Bibliography..............................................................................................................................................12

GRAB TAXI INNOVATION 4
1.0 Introduction
1.1 Background information
Grab is profit social start-up company with a mission for taxi industry revolutionization. The
firm core product is taxi dispatch with GPS enhancement, which allows passengers to hall taxi
that is near to them with an extreme ease. Grab is a technology company that is based in
Singapore which offers logistic services and rail hailing amenities over its mobile app in
Singapore and Southeast Asia countries. The firm operates a mobile technology platform which
integrates the city transportation for the driver customers and partners in the south-east Asia .The
organization offer products such as, GrabHitch,Grab share, Grab Coach, Grab shuttle, Grab
Family, Just grab and GrabRental.The firm offer its services in
Malaysia,Philippines,Thailand,Vietnam and Myanmar (Tetzeli, 2013).
The organization allows the customers to find the taxis near their location and get in contact with
the driver get price quotation ahead of time. The app is more advantageous to the driver as it
allows them to have a plan of all their routes in a more efficient way. The company has a lower
cut per every booking from the driver than other operators of a taxi in Singapore.
The firm started the taxi so as to counter the problem of poor taxi experience. Taxi driver hated
their jobs for the poor pay and women did not feel safe to use a taxi. On the first day of the app
launch, the company had 11000 downloads. The application has now millions of downloads. The
firm has not gained popularity due to marketing but due to the real problem, it solves. The firm
has strongly believed that social value and business can be achieved in parallel.
1.2 Grab History
Grab taxi mobile app idea was generated by Anthony tan, he youngest brother of a family that
operates the Tan Chong Motors, which are the Nissan authorized distributors in Malaysia. This