Should Grab prioritize expanding its food delivery service or focus on improving its ride-hailing experience?

Introduction

The trade-off between expanding Grab's food delivery service and improving its ride-hailing experience presents a critical strategic decision. Both options have significant implications for Grab's market position, user satisfaction, and long-term growth. I'll analyze this trade-off by examining key business factors, user impact, and potential outcomes to provide a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Grab is facing increased competition in both sectors. Could you provide more insight into the current market dynamics and our position relative to competitors in food delivery and ride-hailing?

Why it matters: Helps prioritize which area needs more immediate attention Expected answer: Strong in ride-hailing, growing but not dominant in food delivery Impact on approach: Would influence resource allocation between the two services

• Business Context: Based on our current revenue split, I'm thinking food delivery might be a faster-growing segment. Can you share how each service contributes to our overall revenue and growth targets?

Why it matters: Aligns decision with financial priorities Expected answer: Food delivery growing faster but ride-hailing still larger revenue source Impact on approach: Would help balance short-term gains vs. long-term sustainability

• User Impact: Considering user behavior, I'm curious about the overlap between our ride-hailing and food delivery users. What percentage of our users actively use both services?

Why it matters: Indicates potential for cross-service synergies Expected answer: Moderate overlap, with room for increased cross-service usage Impact on approach: Could influence strategy to leverage one service to grow the other

• Technical: Given our current infrastructure, I'm wondering about the scalability of each option. Are there any significant technical barriers or advantages to expanding food delivery versus improving ride-hailing?

Why it matters: Assesses feasibility and resource requirements Expected answer: Food delivery more scalable, ride-hailing improvements more complex Impact on approach: Would affect timeline and resource allocation for each option

• Resource: Considering our team structure, I'm thinking about our capacity to execute on either option. How are our product and engineering teams currently allocated between these two services?

Why it matters: Determines ability to execute on chosen strategy Expected answer: More resources currently dedicated to ride-hailing Impact on approach: Might require team restructuring or hiring for chosen focus