The Grab app assigns taxis and private hire cars to nearby commuters through a location-sharing system. Each time the company enters a new market, they buy smartphones for drivers in countries that they expand to, allowing those drivers to pay daily installments for the phone. The company makes money by taking a cut of the booking fees. Although some taxi companies have tried to stop their own drivers from using the app, Grab reached out directly to taxi drivers by signing them up at airports, hawker centres, taxi queues, and depots. The company also educates taxi drivers on using the smartphone and their mobile app. In addition to large cities, Grab has also tried to penetrate the markets of smaller cities.

The idea of creating a taxi-booking mobile app for Southeast Asia, similar to those being pioneered in the US, first came from Anthony Tan (陈炳耀 Chen Bingyao) while he was at Harvard Business School. Motivated to make taxi rides safer in Malaysia, Tan launched the “My Teksi” app in Malaysia in 2012 together with Tan Hooi Ling, another Harvard graduate. MyTeksi was started with an initial grant of US$25,000 from Harvard Business School and Anthony Tan’s personal capital. In 2014, Grab moved its company headquarters from Malaysia to Singapore.

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