Ride-hailing Company Grab’s Impact on Singapore’s Economy
$5.2 billion Contribution
According to a recent Oxford Economics report, ride-hailing company Grab added S$5.2 billion to Singapore’s economy in 2023 through its on-demand services, including ride-hailing and delivery.
Breakdown of the Contribution
Oxford Economics breaks down the contribution as follows:
- S$1.2 billion from Grab’s own operations, including employee salaries, equipment, and services purchased from external vendors.
- S$900 million via merchant-partners on the Grab platform and their supply chains, generating profits and wages for workers, which drives expenditure in the wider economy.
- S$3.1 billion via driver and delivery-partners and their supply chains, whose income drives spending in the wider economy.
Indirect Effects on the Economy
The Oxford Economics report indicates that the finance, insurance, professional services, real estate, and wholesale and retail sectors were among the ones that benefited most from the wider supply chain impact of Grab’s on-demand services. This translates to an estimated 117,000 earning opportunities across various supply chains and S$2.5 billion in household income in 2023.
Impact on Employment
According to the report, Grab’s on-demand service delivery in Singapore accounted for 1.1% of total employment in the information and communications, food services, retail, transport, and business and professional services sectors. The multiplier effect of Grab’s transactions generated an additional S$6 of economic activity across the broader economy for every S$10 of GDP generated by Grab transactions.
Conclusion
In conclusion, the Oxford Economics report highlights the significant impact that Grab’s on-demand services have had on Singapore’s economy in 2023, contributing a staggering S$5.2 billion to the GDP. The company’s services not only drive expenditure in the economy but also generate employment opportunities, household income, and multiplier effects that benefit various sectors and the broader economy.
FAQs
Q: How did Oxford Economics calculate the contribution to the economy from Grab’s own operations?
A: The research firm used the sum of Grab’s earnings before interest, taxes, depreciation, and amortisation, as well as wages paid to employees and taxes incurred.
Q: How much did merchant-partners contribute to the economy via their supply chains?
A: Merchant-partners contributed S$900 million via their profits, wages, supply chains, and workers’ income, driving more spending in the wider economy.
Q: What were the sectors that benefited most from Grab’s wider supply chain impact?
A: The sectors that benefited the most were the finance and insurance, professional services, real estate, and wholesale and retail sectors.
