Grab announces GrabForGood Fund to benefit partners and Southeast Asian communities
- Grab plans to create endowment fund with initial funding of US$275 million in cash and Grab shares, including US$25 million personal pledge in Grab shares from Co-founders and President of Grab
- Reflects and furthers Grab’s long-term commitment to uplift people in Southeast Asia
- First fund initiative will provide Covid-19 vaccine support for Grab partners, followed by grants and financial support for long-term social and environmental impact benefiting communities across Southeast Asia
SINGAPORE, 8 April 2021 - Grab Holdings today unveiled plans for the GrabForGood Fund that seeks to support programs that will have lasting impact on the quality of life for its driver-, delivery- and merchant-partners, and the broader community of Southeast Asia.
Grab will seed the fund with US$50 million in cash and US$200 million in expected value of Grab shares. In addition, Grab Group CEO and co-founder Anthony Tan, co-founder Tan Hooi Ling and President Ming Maa have pledged a combined US$25 million in personal contribution of Grab shares (expected value). This brings the total initial fund size to US$275 million, based on today’s value expectations.
“Since our founding, Grab has been dedicated to our mission of creating economic empowerment for everyone in Southeast Asia. The GrabForGood Fund will be a key pillar of our efforts to uplift Grab partners and our broader community, and represents a meaningful next step in our long-term commitment to Southeast Asia,” said Grab Group CEO and co-founder Anthony Tan.
Tan added, “The GrabForGood Fund will commence immediate work on meeting the urgent need for Covid-19 vaccines, where it’s not easily available. Over time, we’re planning to introduce other programs that will provide the foundation for social and economic mobility, and give more people access to opportunities to upgrade and improve their lives. Our aspiration is to create lasting positive impact in every country we operate in.”
The Fund will support a mix of programs aimed at delivering long-term social and environmental impact, including in areas such as education, financial support for underserved communities, and environmental issues. A ‘Fund Advisory Board’ will be formed to give Grab partners and the broader Southeast Asia community strong representation in providing feedback and recommendations over how the funds will be spent.
Near Term Initiative: Up to US$20 million to provide free Covid-19 vaccination for Grab partners
COVID-19 has impacted livelihoods across Southeast Asia. As an immediate commitment, Grab has allocated up to US$20 million in cash from the fund to fully subsidise the cost of Covid-19 vaccines and vaccine administration of eligible driver- and delivery-partners who are not covered by a national vaccination program. This is in response to the findings from February 2021 survey which found that, an average of 92% of Grab users continue to be worried with the Covid 19 situation.
Grab has started sourcing for vaccines and will look into setting up vaccine centres to inoculate eligible partners locally.
Grants and financial support for longer-term social and environmental impact
Structured as an endowment to ensure the Fund’s long-term sustainability, the GrabForGood Fund will start to support other initiatives after it exceeds a certain targeted value. While more details will be determined and disclosed over time in partnership with the Fund Advisory Board, anticipated areas of support include:
For Grab partners:
- GrabInsure Subsidy: Based on a May 2020 survey, the insurance ownership rate amongst Grab partners is low at an average of 13%, with affordability of premiums being the main barrier to purchasing insurance. Grab plans to tailor a GrabInsure program to enable Grab partners to purchase insurance products at discounted rates. The range of insurance products could include life, critical illness, family-member insurance coverage and investment insurance products, and will be customized to the needs of our partners in each country. This is on top of existing region-wide complimentary insurance coverage (Grab Personal Accident Program) that covers all driver- and delivery-partners in event of accidents or death while in service on the Grab platform, subject to the terms and conditions of such coverage.
- Education Scholarships: Merit-based financial aid for the most underserved of the Grab-affiliated community.
- Financial Aid to Persons with Disabilities (PWD): Financial aid for PWDs to gain mobility and access to income by funding car/bike modifications, driving school fees and necessary hardware such as wheelchairs and hearing aids to enable their use of Grab’s platform for income creation opportunities.
For broader community in Southeast Asia:
- Financial and Digital Literacy Programs: Partnerships with financial/educational institutions to provide educational content and co-develop tools to improve digital access, productivity and financial standing.
- Climate Change Resiliency: Grants or incentives towards low- or zero-emission technology and waste reduction solutions, addressing climate change and waste pollution respectively.
- Catastrophic Relief: Financial aid support for vulnerable groups to rebuild lives in the event of natural disasters.
Creation of the GrabForGood Fund is a significant milestone building on the success of many existing Grab’s initiatives to empower Southeast Asia, such as the Small Business Booster Program which helps small businesses to digitalize, and upskilling programs for Grab partners through free access to Microsoft’s e-learning digital literacy modules via the Grab driver app.
Grab plans to ensure the GrabForGood Fund will maintain structures and policies that comply with local laws, regulations and compliance requirements.
Re-disseminated by The Wealth and Society