A study conducted by the University of Asia and the Pacific’s (UA&P) Center for Research and Communications (CRC) shows that Grab Philippines plays a pivotal role in driving economic growth, creating livelihood opportunities and contributing to the gross domestic product (GDP).
The study, titled “The Impact of Ride-Hailing and On-Demand Delivery Services on the Philippine Economy: A Focus on Grab Philippines”, says Grab’s economic influence is evident in its unique ability to amplify economic returns.
It reveals that for every peso spent on the Grab platform, an astounding additional P3.42 is injected into the national economy.
This multiplier effect surpasses industry benchmarks — positioning Grab as a leader in economic contribution within the transportation sector.
The fundamental idea is that with a hypothetical P100-GrabCar ride, an additional P342 is generated for the economy.
“Our study shows that Grab – with its strong foothold in the Philippines, its technology, portfolio of services, and robust ecosystem of partners and merchants, has a remarkable capacity to propel our economy forward. Having the unique position as a superapp has allowed Grab to fully realize a multiplier effect that reverberates throughout the economy and the Filipino household” said UA&P associate professor, senior economist and input-output analysis specialist Dr. Cid Terosa.
Grab ranks third among seven transport sectors with a total output multiplier of 3.42, next to railway and air transport.
Compared with available multiplier studies published in local economics journals, this multiplier significantly outpaces heavy industries like mining, highlighting Grab’s unique and substantial economic contributions.
The study found that consumer patronage of Grab services accounts for 0.07 percent to 0.3 percent of the GDP.
Grab’s estimated total economic contribution from 2019 to 2021 ranged from P37 billion to P165.6 billion, reinforcing its position as a key contributor to the national economy.
The household income multiplier of 0.44 also suggests that every additional peso spent on Grab’s services stimulates an increase of P0.44 in the national household income.
The report says this implies that an extra peso spent on Grab services extends beyond just covering the actual ride or meal – it contributes an additional P0.44 to household incomes for laborers in the ride-hailing and on-demand delivery industry nationwide.
It says that with this multiplier value for household income, Grab Philippines contributed 0.10 percent to 0.17 percent to the total family income from 2019 to 2021 which is equivalent to between P23.8 billion and P40.3 billion.
The study says Grab’s operations also played a vital role in reducing the average number of unemployed persons by 1.1 percent to 1.6 percent from 2019 to 2021.
President Ferdinand Marcos Jr. personally welcomed the considerable contribution of the super app to the country’s employment rate.
These findings strategically align with Grab Philippines’ commitment to the Marcos administration of creating 500,000 livelihood opportunities—laddering up to the administration’s thrust on job creation.
Grab’s mission-driven growth not only addresses major societal challenges but also fosters economic development across different regions in the Philippines.
“This study showcases how expansive the positive impact of online marketplaces like Grab have on national and local economies, promoting a more balanced regional development. 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,” UA&P-CRC senior fellow Dr. Thomas Aquino said.
Grab reaffirmed its dedication to stimulating economic growth through its operations, which spans over 100 cities nationwide.
The leading super app said is set to further drive digital transformation through its everyday services to additional cities and municipalities beyond Metro Manila in 2024, as part of its ongoing commitment to innovation.
“Grab remains firm and focused in its commitment to being an active partner of the government in their growth and development agenda – and we are humbled to see this solidified in concrete economic outcomes,” Grab Philippines country head Grace Vera Cruz said.
“We understand that much work needs to be done in further driving the nation forward, and we are eager and prepared to help usher in a new phase of inclusive growth and prosperity – with the support of our partners in the government and public sector, and our regulators,” she said.
Vera Cruz said Grab would continue leveraging technology and market leadership, and its deep understanding of the needs and aspirations of Filipinos to create transformative impact in their lives and build a stronger, more resilient digital-first economy for generations to come.