Grab Holdings creates $275-M fund for vaccination of drivers, delivery partners in SE Asia

Singapore-based ride-hailing and delivery company Grab Holdings Inc. on Thursday announced plans to create a multi-million dollar endowment fund to initially cover the vaccination against COVID-19 of its drivers and delivery-partners across Southeast Asia.

In a statement, Grab said it will seed the fund with $50 million in cash and $200 million in expected value of Grab shares.

In addition, Grab CEO and co-founder Anthony Tan, Grab co-founder Tan Hooi Ling, and Grab president Ming Maa have pledged a combined $25 million in personal contribution of Grab shares.

This brings the total initial fund size to $275 million, based on today’s value expectations, Grab said.

“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 Tan.

“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,” he added.

Grab said that apart from covering COVID-19 vaccines, 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.

The near term initiative of the fund creation, however, is to provide free COVID-19 vaccination for Grab partners, whose livelihoods have been impacted by the pandemic.

As an immediate commitment, Grab said it has allocated up to $20 million in cash from the fund to fully subsidize 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 its February 2021 survey which found that, an average of 92% of Grab users continue to be worried with the COVID-19 situation, it said.

Grab said it has started sourcing for vaccines, and will look into setting up vaccine centers to inoculate eligible partners locally. — BM, GMA News