Interview with Anthony Tan

Anthony Tan, CEO of Grab, the Southeast Asian super app juggernaut, recently sat down with Rapid Response to unpack Grab's meteoric rise. From outmaneuvering Uber to pioneering AI integration, Tan offered a compelling glimpse into the strategy and philosophy that fuels Grab's success. The interview reveals a leader deeply committed to solving local problems and creating a sustainable, impactful business.

Solving Southeast Asia's Unique Challenges

Grab's journey from a ride-sharing platform to a super app wasn't a calculated expansion, but a series of solutions to pressing Southeast Asian challenges. Initially focused on safety, particularly for women and children, Grab addressed a critical need in the region. But their problem-solving didn't stop there. Recognizing that many drivers lacked smartphones, Grab launched a financing business to equip them, effectively building fintech into its platform organically. "We realized, wait, but to get drivers, you needed to lend them a phone. How do you lend them a phone? Because many of them didn't even have a smartphone," Tan recalls. This proactive approach to overcoming obstacles fueled Grab's expansion and solidified its position as a vital service provider.

Key Insights:

• Problem-First Approach: Focusing on solving real-world problems specific to the region was key to Grab's initial adoption and subsequent growth.
• Iterative Expansion: The super app model wasn't pre-planned but emerged organically as Grab identified and addressed customer and driver needs.

The Power of Data and AI-First with Heart

While Grab's various services provide value on their own, the true magic lies in the data they generate. Tan highlights that "the key is two things, one, how do you create amazing data, and two, how do you create an amazing collection, right?" This data advantage allows Grab to create comprehensive credit scores and price risk more effectively in their fintech operations. To fully leverage this potential, Tan initiated a company-wide "generative AI sprint," aimed at upskilling all employees, regardless of their role. The program successfully shifted the mindset of employees and led to the creation of AI-powered solutions like the AI merchant assistant which provides business support and encouragement. This comprehensive approach showcases Grab's commitment to not just adopting AI, but truly embedding it in its culture.

Key Changes:

• AI Upskilling Initiative: The "generative AI sprint" was critical for transitioning Grab to an "AI-first" company by upskilling employees and fostering a culture of experimentation.
• Data-Driven Decision Making: By leveraging the vast amount of data generated by their services, Grab gains a competitive advantage in risk pricing and service optimization.

Local Knowledge: Winning Against Global Giants

When asked how Grab managed to beat Uber in Southeast Asia, Tan points to the importance of hyper-local expertise and a willingness to tackle challenges that global players overlooked. "How do local hyper local players like us win? It's tough. But how do you get problems that no one else can solve?" Tan notes. A prime example is Grab Maps, built from the ground up to address the inaccuracies of third-party maps in Southeast Asia, particularly for two-wheeled vehicles. This dedication to understanding and solving local nuances not only gave Grab a competitive edge but also created a valuable B2B service now used by companies like Amazon and Microsoft.

Key Practices:

• Embrace Hyper-Local Solutions: Invest in understanding and addressing unique regional challenges that global players may overlook.
• Strategic Partnerships: Collaborate with governments, research institutions, and other companies to leverage expertise and resources.

"You can come out as a lion and be proud and be fierce and um you know you you're willing to chew anything in in your path but at the same time also sort of have the humility of a lamb." - Anthony Tan