A recent study conducted by the University of Asia and the Pacific’s (UA&P) Center for Research and Communications (CRC) has shed light on the significant role that Grab Philippines plays in driving economic growth, creating job opportunities, and making a substantial contribution to the national GDP.
Titled ‘The Impact of Ride-Hailing and On-Demand Delivery Services on the Philippine Economy: A Focus on Grab Philippines’, the study highlighted Grab’s unique ability to amplify economic returns. For every peso spent on the Grab platform, an impressive additional P3.42 is injected into the national economy, surpassing industry benchmarks and solidifying Grab’s position as a leader in economic contribution within the transportation sector.
Dr. Cid L. Terosa, UA&P Associate Professor, Senior Economist, and Input-Output Analysis Specialist, emphasized the significant impact of Grab on the economy, stating that Grab’s technology, services, and ecosystem of partners have propelled the economy forward. The superapp’s multiplier effect of 3.42 demonstrates its capacity to benefit the economy and Filipino households alike.
The study revealed that Grab ranks third among transportation sectors in terms of total output multiplier, trailing only behind railway and air transport. Its economic contribution from 2019 to 2021 ranged from P37 billion to P165.6 billion, underscoring its pivotal role in the national economy. Grab’s household income multiplier of 0.44 also signifies that every additional peso spent on Grab services leads to a P0.44 increase in national household income, benefiting laborers in the industry.
Grab’s operations have contributed to a reduction in the average number of unemployed persons by 1.1% to 1.6% from 2019 to 2021, aligning with the company’s commitment to creating 500,000 livelihood opportunities as part of the government’s job creation agenda.
Dr. Thomas Aquino, Senior Fellow at UA&P-CRC, highlighted the positive impact of online marketplaces like Grab on national and local economies, emphasizing their role in promoting balanced regional development. He expressed optimism about the continued growth of platforms like Grab in driving economic development and transforming the lives of Filipinos.
As Grab continues to expand its operations across the country, the company remains dedicated to stimulating economic growth and fostering innovation. With plans to extend its services to additional cities and municipalities beyond Metro Manila in 2024, Grab reaffirms its commitment to being a key economic driver and a partner in the nation’s growth and development agenda.
Grace Vera Cruz, Country Head of Grab Philippines, emphasized the company’s commitment to creating inclusive growth and prosperity in collaboration with the government and public sector partners. She expressed eagerness to leverage technology and market leadership to drive transformative impact and build a resilient digital-first economy for future generations.
Grab Philippines’ significant economic contributions, job creation initiatives, and commitment to innovation position the company as a key player in driving economic growth and fostering prosperity in the Philippines.
