This archive report was first published on 16 June 2020.
As the COVID-19 pandemic continues to wreak havoc on the global economy, ride-hailing companies are being forced to adapt to the changing landscape. In a bid to cut costs and stay afloat, Grab Holdings has announced that it will be laying off 360 employees.
According to a statement from Grab CEO Anthony Tan, the company has been reviewing all costs and implementing pay cuts for senior management in an effort to become leaner. However, despite these efforts, the company recognizes that it still needs to make significant changes to tackle the challenges of the post-pandemic economy.
Grab's decision to cut costs reflects the plight of ride-hailing services globally, with demand for taxi services plummeting by over 60% in March. This has forced giants like Uber to cut their staff by 14%, with the company announcing further 3,000 cuts in May as it scaled down non-core operations.
Lyft has also made similar job cuts, reducing its staff base by 982 employees in April and implementing pay cuts for executives. The drop in demand for taxi services has been accompanied by a jump in demand for delivery services, with ride-hailing companies globally and locally shifting focus to this area.
As a result, companies like Uber are investing in delivery services, with the company considering acquiring Grubhub to boost its food delivery service. Lyft has also launched a delivery service called 'Essential Deliveries' to deliver meals and groceries, while Uber is planning to expand to grocery delivery in Latin America.
Locally, motorbike hailing app Safeboda has expanded its services to delivery of essential goods, while its rival app Bolt has introduced a delivery service to leverage on its tech and driver network. Other players like Little cab have gone beyond delivery services, adding ambulance services for its customers.
