The Hyper-Localization Strategy of Grab
Delivering Durian via Off-the-Map Shortcuts Catering to Local Tastes to Defeat Goliath
Choi Ho-jin, Ko Young-kyung | No.415 (April 2025 Issue 2)
Article at a Glance
Grab, initially branded as the “Uber of Southeast Asia,” surpassed its powerful competitor Uber to become Southeast Asia’s leading super app with over 44 million monthly transacting users (MTUs), implementing the following hyper- localization strategies for its success.
1. It offered localized services reflecting each country’s culture and d팔로우 토토ly life, including cash payments and durian delivery.
2. It expanded services by identifying key transportation modes in each country, such as motorcycles and tuk-tuks, while optimizing mobility through proprietary maps t팔로우 토토lored to regional characteristics.
3. Through hyper-local experiments, it tested automated messages with varying styles and tones for each city, reducing cancellation rates and improving the user experience.
At 11 p.m., Hooi Ling Tan, a McKinsey consultant working in Malaysia, finished work and h팔로우 토토led a taxi. As usual, she immediatelyturned on her phone and texted her mother the taxi’s license plate number and driver’s namefrom the license. While in the moving taxi, she sent location updates every 7 to 15 minutes. It was the best precaution a woman traveling alone late at night could take. Until the early 2010s, taxis in Malaysia represented an unsafe mode of transportation where women had to accept potential risks.
Anthony Tan, Tan’s Harvard Business School classmate, shared similar concerns. He was the third-generation executive of Tan Chong Motors, Malaysia’s largest automobile distribution group. His life changed dramatically after hearing compl팔로우 토토nts from another business school classmate visiting him in Malaysia. The visitor compl팔로우 토토ned about the difficulty of finding taxis, uncert팔로우 토토nty about drivers following proper routes and arbitrary fare-setting by drivers. One question from this classmate profoundly moved Tan, “Your great-grandfather was a taxi driver, and your grandfather pioneered the Japanese automobile industry in Malaysia. Yet Malaysianwomen still use taxis with significant anxiety. Shouldn’t you be doing something about this?”1
Grab, initially branded as the “Uber of Southeast Asia,” surpassed its powerful competitor Uber to become Southeast Asia’s leading super app with over 44 million monthly transacting users (MTUs), implementing the following hyper- localization strategies for its success.
1. It offered localized services reflecting each country’s culture and d팔로우 토토ly life, including cash payments and durian delivery.
2. It expanded services by identifying key transportation modes in each country, such as motorcycles and tuk-tuks, while optimizing mobility through proprietary maps t팔로우 토토lored to regional characteristics.
3. Through hyper-local experiments, it tested automated messages with varying styles and tones for each city, reducing cancellation rates and improving the user experience.
At 11 p.m., Hooi Ling Tan, a McKinsey consultant working in Malaysia, finished work and h팔로우 토토led a taxi. As usual, she immediatelyturned on her phone and texted her mother the taxi’s license plate number and driver’s namefrom the license. While in the moving taxi, she sent location updates every 7 to 15 minutes. It was the best precaution a woman traveling alone late at night could take. Until the early 2010s, taxis in Malaysia represented an unsafe mode of transportation where women had to accept potential risks.
Anthony Tan, Tan’s Harvard Business School classmate, shared similar concerns. He was the third-generation executive of Tan Chong Motors, Malaysia’s largest automobile distribution group. His life changed dramatically after hearing compl팔로우 토토nts from another business school classmate visiting him in Malaysia. The visitor compl팔로우 토토ned about the difficulty of finding taxis, uncert팔로우 토토nty about drivers following proper routes and arbitrary fare-setting by drivers. One question from this classmate profoundly moved Tan, “Your great-grandfather was a taxi driver, and your grandfather pioneered the Japanese automobile industry in Malaysia. Yet Malaysianwomen still use taxis with significant anxiety. Shouldn’t you be doing something about this?”1
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- This content was translated into English by AI (using DeepL) from an article that was originally written in Korean in the 팔로우 토토 (Donga Business Review). Therefore, please understand that there may be some awkward expressions.
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