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Product Management Trade-off Question: Grab's strategic focus between core ride-hailing and new service diversification

Asked at Grab

15 mins

Is it better for Grab to focus on improving the core ride-hailing experience or diversifying into food delivery and financial services?

Product Trade-Off Hard Member-only
Strategic Thinking Market Analysis Product Prioritization Ride-hailing Food delivery Fintech
Product Strategy Fintech Ride-Hailing Super-App Diversification

Introduction

The core trade-off we're examining is whether Grab should focus on improving its ride-hailing experience or diversify into food delivery and financial services. This decision is critical for Grab's future growth strategy and market positioning in Southeast Asia. I'll analyze the pros and cons of each approach, considering user needs, market dynamics, and Grab's core competencies.

Analysis Approach

I'd like to start by asking a few clarifying questions to ensure we're aligned on the key aspects of this trade-off. Then, I'll walk you through my analysis framework, covering product understanding, hypothesis formation, metrics identification, experiment design, and ultimately, a recommendation with next steps.

Step 1

Clarifying Questions (3 minutes)

  • Context: I'm thinking about Grab's current market position. Could you share more about Grab's market share in ride-hailing across its key markets?

Why it matters: Helps assess the growth potential in the core business Expected answer: Strong market leader in most Southeast Asian countries Impact on approach: High market share might suggest limited growth in core, favoring diversification

  • Business Context: Based on industry trends, I'm assuming ride-hailing is still Grab's primary revenue driver. What's the current revenue split between ride-hailing and other services?

Why it matters: Indicates the financial impact of focusing on core vs. diversifying Expected answer: Ride-hailing still dominant, but other services growing rapidly Impact on approach: Would influence resource allocation between core and new services

  • User Impact: Considering user behavior, I'm curious about cross-usage patterns. What percentage of ride-hailing users also use Grab for food delivery or financial services?

Why it matters: Indicates potential for cross-selling and user retention Expected answer: Moderate overlap, with room for growth Impact on approach: High overlap might favor improving core to retain users; low overlap could suggest opportunity in diversification

  • Technical: Thinking about platform scalability, how much of Grab's current tech stack can be leveraged for food delivery and financial services?

Why it matters: Affects the efficiency and cost of diversification Expected answer: Significant portions can be reused, especially for logistics Impact on approach: High reusability would make diversification more attractive

  • Resource: Considering team capacity, how does Grab's current talent pool align with the skills needed for food delivery and fintech expansion?

Why it matters: Influences the feasibility and speed of diversification Expected answer: Strong in logistics, building fintech capabilities Impact on approach: Skill gaps might necessitate focusing on core while building new capabilities

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