Taking office as CEO of Grab Vietnam from December 2022, for the first time, Mr. Alejandro Osorio met with the press to discuss the business strategy, long-term orientation of the application and development opportunities in Vietnam in the context of many economic challenges.
Among the most repeated phrases, Alejandro Osorio especially emphasized: potential, attractiveness. "Considering the growth momentum for the industry, understanding and readiness for technology, Vietnam can be among the top in the region," he assessed.
According to him, our country has a large young population with a preference for and frequent use of mobile devices; the middle class is continuing to grow.
Vietnam is still predicted to be the fastest growing economy in Southeast Asia this year. He exemplified the rapid economic development by the trend: people switching from bicycles to motorbikes and then cars in a short time, and the transport infrastructure modernizing at a dizzying speed.
More interestingly, Vietnamese people have an extremely high entrepreneurial spirit. What impressed him most was that from street vendors to office workers and entrepreneurs, everyone was determined and striving for a better life every day.
Officially entering the Vietnamese market in 2014, Grab currently provides multiple services: transportation, delivery, food delivery, online shopping and is cooperating with a number of partners to provide financial services. Although confident in the opportunity to expand market share, the CEO also acknowledges that it will "take a lot of effort" in the process of localizing products for each locality.
With the penetration rate of Grab services still low, the CEO said these gaps are opportunities for growth. By introducing new services and expanding existing advantages to many markets, from morning to noon or late afternoon and night, the company will encourage users to open the app and use it, thereby creating momentum for sustainable growth.
When asked about the domestic market share, Alejandro Osorio smiled and replied: I can't reveal it. But he said that it can be seen by observing the roads, restaurants, buildings, street corners... that we pass by.
"Grab is a brand, but now many people are using it as both a noun and a verb. For example, when people need to book a ride, they say: 'I'll Grab'. Or when they invite each other to order food, I hear them say: 'Grab?'. That shows the position we have in the market," Alejandro analyzed.
Currently, the unit has recorded a strong recovery overall after the Covid-19 pandemic. He analyzed that in the context of the pandemic, delivery was extremely popular because everyone was at home, shops were closed... But interestingly, when all activities gradually returned to normal, the delivery sector continued to grow, even growing better.
Another number that the CEO shared is that in addition to Hanoi and Ho Chi Minh City, Grab is currently present in about 50 provinces and cities across the country.
“Or you can open your phone to see the diversity of services and the reach we have nationwide – a result of strong, serious investments in technology, finance and human resources over the past nine years,” he said.
It is agreed that business will always put units in a competitive situation, but that context also creates development momentum. The head of Grab Vietnam also believes that opportunities are available to all businesses, because the market still has a lot of room.
Optimistic, but cannot ignore the fact that there are countless challenges. "The first and biggest challenge is the social responsibility of enterprises to partners and the community," he said. Especially during the pandemic, the leadership understands better that each decision made can impact the lives of millions of people, from driver partners, stores to customers... Each policy and program launched requires more caution, investment, and requires perfection in the operating system.
Second, he said the ride-hailing and delivery industry via apps is still quite young. Grab has only been in operation for nine years, and the market is still growing very quickly.
Another difficulty is that outside of Hanoi and Ho Chi Minh City, the penetration of Grab services is still quite low. But just by changing the perspective, with a large part of the population living in small provinces and cities, this will be a huge potential for development.
"There are many different challenges that we face. That's why I'm here," said the head of Grab Vietnam.
Alejandro Osorio has extensive experience working in Asian countries for many years, and is also the person who helped Grab Thailand overcome and recover strongly after Covid-19. Therefore, in the announcement of his appointment, the group introduced the male CEO with the role of: enhancing the position in the service sectors in Vietnam.
Throughout the conversation, Mr. Alejandro Osorio kept saying: don't ask about me. He considers himself an introvert, but he shared that he will develop his staff by: transmitting passion to them.
The CEO said that he really likes asking questions to expand his thinking: "I always welcome, learn and experience new cultures in both life and career because no one is an absolute expert in every field. In new environments, I always face many challenges; but instead of backing down, I see it as motivation to renew and improve myself. And in the position of CEO, that is how I help the company develop."
To turn challenges into opportunities, the company relies on four pillars: leveraging the power of a multi-application ecosystem; improving operational efficiency; providing more cost-effective services; and increasing partner and community support.
But every strategy revolves around the core – the user. To fully and best meet the needs of users, companies need to understand the overall market picture as well as the unique needs of each individual.
In a challenging economic environment, customers are gradually changing their spending habits and tightening their purse strings. Applications need to understand this trend and provide services and features that help users save money.
Now that its driver base has improved post-pandemic, it can offer more economical fares for users who choose its GrabBike and GrabCar services. It has also launched GrabBike Economy and GrabCar Economy, which are up to 10% cheaper than regular fares. GrabFood, in particular, is testing a new feature that gives users three delivery options, including the option to choose a cheaper fare if they are willing to wait a little longer.
Next, the platform optimizes the advantages of a multi-service super app to bring more value to users and partners. "The 'super app' strategy is increasingly proving effective in maintaining old customers and attracting new customers because people only need to access a single app for all their needs," the CEO said. Or on the driver side, instead of having only one source of income from one service, they can take on additional food delivery, freight transport, etc. and maximize their income throughout the day.
For GrabFood and GrabMart store partners, the company also offers many growth tools, programs to increase brand awareness... thereby helping to manage operations and optimize spending.
Not out of the global trend, the company strives to fulfill its social responsibility, bringing many income opportunities to driver partners as well as micro, small and medium enterprises in the ecosystem. For drivers, in addition to helping improve digital skills and many opportunities to increase income, Grab also connects them with financial support and insurance services.
This year, the company has implemented many programs such as GrabConnect to help many agricultural cooperatives digitize and increase user accessibility. Or with the program "Joining hands with Grab, building bridges to school", the company plans to work with the Vietnam Children's Fund to complete the construction of the 7th and 8th bridges in Lai Chau province to make it easier and safer for students and people to travel.
Furthermore, the company is also actively contributing to the group's commitment to be carbon neutral by 2040. When ordering a GrabBike or GrabCar, users can choose the carbon neutral feature to support the Watershed Forest Fund in Thuan Nam District, Ninh Thuan Province. Meanwhile, on the GrabFood food ordering service, the application does not accept plastic eating utensils by default.
During the talk, he also revealed that he is working with several companies to test electric vehicles for the GrabExpress delivery service. During a one-month trial in Hanoi, GrabExpress drivers traveled about 30,000 km and reduced about 3.4 tons of carbon emissions.
Closing the conversation, the CEO said: "Grab is my wife", and because his wife is always a priority, Grab is Alejandro's biggest concern at the moment. He believes that with a talented and enthusiastic team, Grab Vietnam will achieve sustainable growth for the entire ecosystem and create a positive impact on society in the context of strong digital transformation.
Content: Grassland - Photo: Thanh Tung - Design: Thai Hung
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