Feb 8, 2018

Samsung and Grab sign an MOU to improve Digital Life in Southeast Asia

What happens when the biggest smartphone conglomerate in the world partners with the leading ride-hailing service in Southeast Asia? We'll find out with this new collaboration.

Samsung and Grab have just entered into a partnership as they sign a multi-year memorandum of understanding (MOU) where the two will work on the joint development of customized solutions for the ride-hailing industry. Under the agreement, Grab and Samsung will bring to bear several initiatives to improve the customer experience and the income opportunities of ride operators to the millions of people using and providing Grab services in Southeast Asia.

The Singapore-based Grab currently operates the largest transportation network in Southeast Asia, with over 2.3 million drivers giving out 3.5 million rides each day. Grab has a reach of over 77 million installs on mobile devices in the region.

Partnered with Samsung, the MOU will have them improve the current state of the industry, including a micro-financing scheme for Grab's 2.3 million partner drivers and an improved mobile payments solution for customers who don't have easy access to the digital economy.

The first phase of the partnership is a micro-financing program for Grab drivers looking to upgrade their smartphones, a move piloted in Myanmar in Q4 2017 and which will now be rolled out across the region. This will enable more drivers who do not have access to formal financial services to participate in the ride-sharing service. More than 1,400 drivers in Myanmar took up the offer during the pilot.

"Through this collaboration, we hope to explore how we can work together to tap into the massive growth opportunity of Southeast Asia's digital economy," says Sangchul Lee, the President and CEO of Samsung Electronics Southeast Asia and Oceania. Southeast Asia is one of the fastest growing markets in internet services and it is expected to reach a size of USD 25 billion(around PHP 1.3 trillion) by 2022. This MOU will position Grab and Samsung to take advantage of this growing market in the very near future.