Grab announced today that its senior leaders will take salary cuts of up to 20% as part of a series of measures to mitigate the impact of COVID-19 as the pandemic rapidly sweeps across Southeast Asia.
In a media announcement, the company referred to the difficulties that millions of its drivers across Southeast Asian cities have faced after countries implemented measures to restrict movement and ensure social distancing.
The salary reductions will be used to contribute toward the company’s Partner Relief Initiatives, which provide assistance and support for drivers and merchants across the region. Other Grab employees can voluntary donate to the relief fund and the company will match them dollar-for-dollar. In Vietnam, Grab announced that the support fund will amount to VND 70 billion (about USD 3 million).
“The COVID-19 pandemic has caused immense financial anxiety amongst our driver, delivery and merchant-partner community,” said Anthony Tan, Group CEO and co-founder of Grab. “Our top priority is to ensure the safety and well-being of everyone on our platform and we are grateful for our partners who continue to provide essential services during these trying times.”
Increased demand for food deliveries
As consumers adapt to restricted movement and social distancing measures, Grab said the company has seen an increased demand for food, parcels, and daily essentials delivery, as well as a decrease in its ride-hailing business.
Grab said it will, in the coming weeks, expand its GrabMart and GrabAssistant services to more countries in the region as part of efforts to provide alternative sources of income for drivers.
In addition, drivers in some countries have been retrained to provide support due to rising demand for food deliveries. For example, in Malaysia, Grab said it has transitioned 18,000 GrabCar drivers to support increased demand in the food, mart and express delivery services.