Grab’s on-demand services, including ride-hailing and delivery, have significantly bolstered Singapore’s economy, contributing S$5.2 billion (US$3.9 billion) in 2023, according to a report by Oxford Economics. This contribution represents approximately 0.8% of the nation’s Gross Domestic Product (GDP), highlighting the substantial economic impact of platform companies.
The report, conducted by the global economic consultancy, underscores the multiplier effect of Grab’s operations. James Lambert, Director of Economic Consulting for Asia at Oxford Economics, noted, “For every S$10 of GDP generated by Grab transactions, an additional S$6 of economic activity is created across the broader economy.” This demonstrates the pivotal role of platforms like Grab in advancing Singapore’s digital economy.
Key findings from the report include:
– Grab’s operations generated S$1.2 billion through activities such as hiring employees and purchasing equipment and services.
– Merchant-partners on Grab’s platform contributed S$0.9 billion, driven by sales on GrabFood and GrabMart.
– Driver and delivery-partners generated S$3.1 billion, reflecting the income earned through Grab’s services.
These contributions supported approximately 117,000 earning opportunities and translated to S$2.5 billion in household income. Sectors such as finance, insurance, professional services, real estate, and wholesale and retail benefitted most from these impacts.
Lambert further emphasised the supportive business environment in Singapore, stating, “The report’s findings demonstrate the benefits of Singapore’s conducive business environment and regulatory framework, which have enabled platform companies like Grab to thrive.” This success reflects both Grab’s super-app and the sophisticated nature of the Singaporean market.
