A recent study conducted by the University of Asia and the Pacific’s Center for Research and Communications (UA&P-CRC) unveils a notable multiplier effect: for every peso spent on the Grab platform, an additional P3.42 is injected into the national economy.
Grab is a ride-hailing and food delivery service that has been dominating the industry since the exit of Uber from the Philippines years ago.
Titled ‘The Impact of Ride-Hailing and On-Demand Delivery Services on the Philippine Economy: A Focus on Grab Philippines’, the study highlights Grab’s role in driving economic growth and creating livelihood opportunities.
READ:
Grab reaffirms commitment to partners’ welfare
Grab introduces new tech solutions to support business sustainability
“Our study shows that Grab — with its strong foothold in the Philippines, its technology, portfolio of services, and a robust ecosystem of partners and merchants, has a remarkable capacity to propel our economy forward,” said Dr. Cid Terosa, associate professor and senior economist at UA&P.
With a total output multiplier of P3.42, Grab ranks among the top three transport sectors in economic contribution, surpassing heavy industries like mining. Consumer spending on Grab services accounts for 0.07 to 0.3% of the national GDP, amounting to an estimated total economic contribution ranging from P37 billion to P165.6 billion between 2019 and 2021.
Key economic drivers
The study reveals a household income multiplier of 0.44, indicating that every additional peso spent on Grab services stimulates a P0.44 increase in national household income. This translates to Grab contributing between 0.10% and 0.17% to total family income during the same period.
In addition to its economic impact, Grab’s operations have played a crucial role in reducing unemployment rates by 1.1% to 1.6% from 2019 to 2021.
“We are very optimistic that with the fast-growing adoption of digital-first ways of life, platforms like Grab will continue to be key economic drivers as they transform the lives of many Filipinos for the better,” Dr. Thomas Aquino, senior fellow at the UA&P-CRC, commented on the study.
Grace Vera Cruz, country head, Grab Philippines, reaffirms the company’s commitment to collaboration with the government in fostering inclusive growth and prosperity. Vera Cruz expresses optimism about Grab’s role in creating transformative impact and building a resilient digital-first economy.