It’s common to see Grab driver-partners along the bustling roads of Southeast Asia, darting back and forth to deliver food or ferry passengers.
In 2023, we welcomed over a million new driver-partners. This is good for us—a sign that more people are using Grab services every day.
However, this also puts us in a tricky situation amid global targets to get more electric vehicles (EVs) on the road. The most significant contributor of our emissions comes from the vehicles operated by our driver-partners.
What does this mean for us as our platform continues to grow?
A core part of our strategy to become carbon neutral is to help build an inclusive EV ecosystem for our driver-partners. On the consumer front, we are looking at ways to shift some of the demand towards EVs. At the same time, we are working closely with regulators and industry players to improve the region’s EV infrastructure.
For wider adoption of EVs to happen, they have to be a convenient alternative for driver-partners.
We know that for two-wheel EV drivers, battery issues are still a bugbear. To plug the gaps in charging infrastructure, we’ve partnered with energy providers such as SWAP Energy and motorcycle manufacturer Kymco.
These partnerships have expanded the BaaS (Battery-as-a-Service) network to more than 1,200 battery swap stations across eight cities in Indonesia.
Using a heat map of where our driver-partners operate in and the common points of interest for our services, we worked with our partners to figure out the best spots to set up the battery swapping stations. This ensures that drivers have convenient and timely access to swapping stations along their regular routes, reducing downtime and improving the efficiency of their work.
Ownership costs should be the last thing that holds back our driver-partners from opting for more sustainable transport options. In 2022, GrabElectric was launched in Indonesia to make the transition to two-wheel EVs affordable and accessible, especially for the underserved and low-income segments.
Today, GrabElectric is the largest EV fleet operator in Indonesia with more than 10,000 two-wheel EVs.
We’ve also launched a ‘Drive to Own’ model in Thailand to lower the financing barrier of EVs with zero down payment required, and daily instalments and loan approval based on our records of the driver-partner.
Thanks to our network of driver-partners, we’re able to work closely with industry players and serve as a test-bed for EV solution providers to conduct end-to-end trials and find product-market fit.
Over in Vietnam, for instance, we partnered with EV startup Selex Motors to pilot their EV bikes for our GrabExpress service. It was first rolled out in Hanoi at the end of 2022. Within a month since it was rolled out in Hanoi at the end of 2022, our delivery-partners travelled more than 30,000km on these EV bikes.The pilot was subsequently extended to Ho Chi Minh City in 2023.
To drum up demand among passengers, we’ve made it simpler for passengers to opt for environmentally-friendly transportation options in-app in Singapore and Thailand. Users can toggle on the option for our allocation system to prioritise EVs and hybrid vehicles at no additional charge.
But there’s more to be done.
In the two-wheel segment, for instance, there are limitations when it comes to setting up more battery swapping stations that are vital for the effective use of EVs. But it’s hard to scale given that each electric motorcycle brand comes with its own set of battery standards that can’t necessarily be used across other brands.
On the four-wheel front, driver-partners often worry about not having enough charge to complete their deliveries and rides, especially those who tend to work longer hours. Meanwhile, having to set aside time for charging may also eat into the time that could be spent earning. The accumulated cost—including time, effort, and maintenance—may eclipse the savings made by not using petrol.
Many of these issues can’t be fixed overnight but we’re already taking the first steps towards the shift to more sustainable transport options across Southeast Asia.
Our emission density per kilometre travelled has dropped 2 per cent year-on-year for our mobility segment, and 8.2 per cent year-on-year for the deliveries in 2023.
(Read more: Grab’s 2023 ESG report)
Meanwhile, some 6.3 per cent of all distance travelled in 2023 was on low or zero emission modes of transport (EV, hybrid vehicles, cyclists and walkers).
We will continue to look for opportunities where we can come in to support more driver-partners in their EV journeys and to build a more inclusive EV ecosystem.
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GrabFood delivery-partner, Thailand
GrabFood delivery-partner, Thailand
COVID-19 has dealt an unprecedented blow to the tourism industry, affecting the livelihoods of millions of workers. One of them was Komsan, an assistant chef in a luxury hotel based in the Srinakarin area.
As the number of tourists at the hotel plunged, he decided to sign up as a GrabFood delivery-partner to earn an alternative income. Soon after, the hotel ceased operations.
Komsan has viewed this change through an optimistic lens, calling it the perfect opportunity for him to embark on a fresh journey after his previous job. Aside from GrabFood deliveries, he now also picks up GrabExpress jobs. It can get tiring, having to shuttle between different locations, but Komsan finds it exciting. And mostly, he’s glad to get his income back on track.