Leveraging tech for our collective success

In an increasingly digital world, technology has become a crucial driver of economic growth and societal progress.

In my seven years with Grab, I have witnessed firsthand how technology can transform lives, create livelihoods, and contribute to our nation’s economic targets.

Grab, being among the leaders in tech in Southeast Asia, has been at the forefront of this digital revolution. In the Philippines, we continue to create thousands of livelihood opportunities—from drivers and delivery partners to small business owners who have expanded their reach through our platform.

In a study conducted by the University of Asia and the Pacific Center for Research and Communications (CRC), they found that for every peso spent on the Grab platform, an additional P3.42 is injected into the national economy. With a multiplier effect of 3.42, Grab’s total economic contribution from 2019 to 2021 is estimated to range from 0.07 to 0.29 percent of current GDP and 0.07 to 0.30 percent of constant GDP. These percentages are estimated to range from P37 billion to P165.6 billion. Finally, the CRC study finds that Grab Philippines continues to contribute to solving the Philippine unemployment problem. From 2019 to 2021, it significantly contributed to reducing the average unemployment rate by 1.1 to 1.6 percentage points.

These key findings affirm the significant role that Grab plays in the Philippine economy. We have embraced the mission of not just providing convenient services to Filipinos but empowering them and contributing to the broader economic development of the country.

Like many companies, we wouldn’t be able to make a significant impact on the lives of Filipinos without scale. Innovative business models require scale because it leads to network effects which then leads to increased value for all its stakeholders. Scale also allows companies to invest in cutting-edge technology, which in turn improves its services and products. This has a ripple effect, elevating industry standards and practices, and driving innovation across the board. It’s a virtuous cycle: the more we grow, the more we can invest in technology, and the better our services become.

Innovation is at the heart of what we do. We continuously adapt our business model to support the ever-changing business and consumer landscapes. From offering ride-hailing services, we have expanded to food and grocery delivery, digital payments, and more. We strive to meet the evolving needs of our consumers while also providing new opportunities for our driver- and merchant-partners.

But our journey doesn’t stop there. Through scale, digital companies like Grab become effective partners of governments in supporting the inclusive growth of the digital economy, ensuring that its benefits are accessible to all. These types of companies contribute to the economy by creating jobs and providing new opportunities for micro and small businesses. They also play a role in consumer protection, ensuring that users can access services safely and conveniently.

A recent study by the Tech for Good Institute (TFGI) entitled “Leveraging Digital Platforms for Public Benefit,” highlighted that beyond economic benefits, digital platforms help advance sustainable development goals through their efficiency, accessibility, scale, and agility. These enable platforms to help in addressing social needs by supporting communities during natural and health crises, increasing access to goods and services for underserved populations, and promoting sustainable practices. The TFGI study also noted that digital platforms require scalable business infrastructure, relying on network effects to become more valuable as user numbers increase, and can operate continuously across geographies. It concludes that by lowering barriers to entry and reducing operational costs, digital platforms are able to offer seamless user journeys and enhanced accessibility.

However, we must also recognize that with scale comes great responsibility. As companies grow, so should its commitment and action toward growing sustainably and responsibly. This means investing in people’s growth and working with governments to reimagine policies and regulations that benefit everyone.

In the end, learning from my experience with Grab, the success of a company is intrinsically linked to the success of its partners, consumers, and the broader community. We are in this journey together, and we are committed to leveraging technology to create a better future for all.

The road ahead is filled with opportunities and challenges. But with the power of technology and our collective efforts, I am confident that we can navigate this journey toward success. Together, let’s harness the potential of the digital economy and build a brighter future for the Philippines.

—————-

Sherielysse Bonifacio, a lawyer by profession, is the public affairs head of Grab Philippines.

—————-

Business Matters is a project of the Makati Business Club ([email protected]).