How China’s playbook could guide Grab’s drone gamble

IN JUNE, Grab announced that it was piloting drone deliveries in the Philippines. The move could streamline the delivery process in a market grappling with severe traffic congestion.

Under the pilot, which was launched in June in the capital Metro Manila, Grab delivery drivers will handle pick-ups and drop-offs from dedicated drone landing stations. This means humans continue to handle the first- and last-mile leg of deliveries.

The costly move would increase order volumes for the platform on the whole, since drivers can complete more jobs in less time. Drones can also expand the reach of merchants beyond their immediate radius and bypass congested roads so consumers obtain their goods faster.