Ride-hailing and food delivery app Grab will be ceasing operations for its AutoInvest and Earn+ investment products from 2 October 2023. The company will also be winding down its GrabInvest business, according to a notice on its website.
In its notice, Grab highlighted that the decision is a result of an extensive review which concluded that its AutoInvest and Earn+ products were not commercially viable in the long run.
"We understand that this is disappointing news, and we apologise for any inconvenience caused," it said.
Grab also explained that it understood that the discontinuation of AutoInvest and Earn+ may result in an earlier than desired redemption of the units in the funds of users.
"Where your redemption takes place on and from 25 September 2023 and results in a negative dollar value return on your portfolio, we will credit that equivalent dollar value to your GrabPay Wallet as a gesture of goodwill," it said.
From 25 September 2023, deposits will stop being accepted into AutoInvest and Earn+. Automatic transfers into AutoInvest have also been paused. Users will be able to withdraw their funds until 13 October 2023 and no further transactions will be allowed.
Grab has also told its customers that it will not accept new deposits into its AutoInvest and Earn+ products from September 25, and has asked users to withdraw their money from both products by October 13 this year. No additional transactions on AutoInvest and Earn+ accounts will be permitted from 14 October 2023.
"If you do not withdraw your monies before 13 October 2023, your holdings will automatically be redeemed on your behalf at the prevailing market price on or after 14 October 2023, and the proceeds then returned to your GrabPay Wallet," said Grab.
Users were also advised to cease making deposits into Earn+ and to cancel any recurring deposits from their banks to Earn+.
"This decision is part of our ongoing efforts to streamline our financial services business to focus on products with strong ecosystem synergies such as GrabPay, Insurance and Lending," said a spokesperson from Grab to MARKETING-INTERACTIVE.
Both investment products are part of Grab Financial Group (GrabFin) which covers Grab’s financial services outside digital banks and which is only available in Singapore. The products were also a result of Grab’s acquisition of robo-advisory firm Bento in Feb 2020, along with its capital markets licence. Bento was then rebranded to GrabFin following the acquisition.
As Grab winds down its investment products, reports are suggesting that it might be looking to expand its food and grocery delivery services.
Delivery Hero, the Berlin-based owner of online food and grocery delivery company foodpanda, is discussing a potential sale of its Asia business, according to the company when MARKETING-INTERACTIVE reached out. The deal is still under negotiations but it was reported that tech platform Grab could pay the equivalent of as much as a billion euros for the unit.
"Delivery Hero confirms negotiations with several parties regarding a potential sale of its foodpanda business in selected Southeast Asia markets," it said. "Any discussions or plans are in their preliminary stages."
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