Grab's asset-light model acquiring more of a physical flavour

THE asset-light model is almost a mantra for tech startups in the business of providing a middle layer of software between end customers and providers of goods and services. This makes Grab's recent acquisition of Malaysian grocery chain, Jaya Grocer Holdings, a seeming contradiction.

Grab's role is to offer a platform for customers to transact with drivers and restaurants. And it charges both sides of the supply and demand equation for bringing them together.

The company's business model is touted as valuable and scalable partly because it doesn't own physical assets, which would weigh on the balance sheet as they depreciate. Its software and services can serve 1 million customers almost as easily and cheaply as they can serve 100 customers, which means there is potential for hefty profit margins.