Grab to launch EV pilots with Hyundai to drive South-east Asia adoption

GRAB and Hyundai Motor Group will launch new pilot programmes in Singapore, Indonesia and Vietnam to encourage adoption of electric vehicles (EVs) among Grab drivers and delivery persons, both companies announced in a Tuesday press statement.

The aim is to lower the barrier to entry for EV adoption in South-east Asia, as well as reduce "range anxiety", or the fear that EVs have inadequate range to reach a destination. The pilots will test new EV business models, such as battery and car leasing arrangements. EV financing options will also be tailored to Grab's drivers and delivery persons.

Grab and Hyundai will also conduct a feasibility study on the barriers to wider EV ownership and adoption, and develop a joint roadmap to make EVs more viable for on-demand services.

Russell Cohen, group managing director of operations at Grab, said that the company plans to play a "vital role" in accelerating EV adoption, in collaboration with governments and partners.

"As government EV policies and incentives are implemented and essential infrastructure like charging stations continue to be built, this partnership will provide insights and best practices on the usage of EVs as part of the day-to-day operations of driver and delivery partners," he said.

Mr Cohen also cited how Grab has already piloted ways to reduce delivery persons' downtime by allowing them to swap e-moped batteries at Grab's cloud kitchens while they wait to collect food orders.

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Minsung Kim, vice-president of the innovation division at Hyundai Motor Group, noted that the Korean multinational and Grab have been partners since 2018, allowing them to uncover the potential of EVs in South-east Asia. Hyundai is also invested in Grab.

"With Grab having the largest driver network in the region and Hyundai's comprehensive mobility solutions, we are confident that together we can help to increase the adoption of EVs and ultimately reduce carbon emissions throughout the region," he said.

Grab has doubled down on EVs in recent years. In early 2019, it purchased 200 Hyundai Kona electric cars, then making it one of the largest EV fleet owners in Singapore. Later that year, it launched an EV roadmap in Indonesia.

Grab unveiled its latest EV effort on the back of releasing its ESG (environment, sustainability and governance) report.

The company also announced a new initiative to allow consumers to purchase "carbon offsets" at less than US$0.10 per ride, to go towards reforestation and conservation projects managed by local non-governmental organisations. The feature will be launched in Indonesia, Malaysia and Thailand, before rolling out to the rest of the region.

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