The Total Economic Impact™ Of Grab For Business
Cost Savings And Business Benefits Enabled By Grab For Business
A Forrester Total Economic Impact™ Study Commissioned By Grab For Business, February 2024
Fostering direct connections with clients, partners, and employees is crucial for business success. It usually involves traveling for meetings and incorporating meals into employee experience (EX) programs and return-to-office initiatives. However, these essential in-person interactions often come with hidden costs, particularly around manual claims, travel and expenses (T&E) compliance checks, and reimbursement processes. Grab For Business affords organizations an option for their employees to order daily services via a corporate solution — exempting employees from lengthy reimbursement claim procedures while allowing managers to maintain control and compliance.
Grab For Business offers organizations improved operational efficiencies, risk-based control, and transparency into their Grab transactions. Decision-makers can easily set digital rules and automate payments for compliant bookings while employees use the Grab app for business transport, food orders, and deliveries. Grab For Business also provides detailed insights into all bookings and transactions through flexible, real-time reports.
Grab For Business commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Grab For Business.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Grab For Business on their organizations.
Return on investment (ROI)
159%159%
Net present value (NPV)
$498K$498K
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed five representatives from four organizations with experience using Grab For Business. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a professional services company with 500 employees across Asia Pacific (APAC) with a revenue of $150 million per year.
has 0 employees, has 0 corporate services employees, has 0 finance employees who manage reimbursements, and the average employee expense claim is $0 for each claim. Custom results are based on these inputs and the TEI case study.
Interviewees said that prior to using Grab For Business, their employees either ordered taxis or ride-share services on their own or drove to work, and taxi/ride fares were reimbursed upon claims along with certain meal expenses. This meant employees had to bear heavy cashflow burdens. In spite of an established expense claim system, organizations still spent hours processing reimbursement workflows month after month. On top of this, they had trouble tracking and understanding employee spending and daily activities, as they could not gain an overview of actual employee transactions. Organizations lacked the evidence to fully verify business expenses and struggled to maintain compliance control. Some organizations attempted to create reports by recording information into spreadsheets, but this led to even more manual labor.
After the investment in Grab For Business, the organizations consolidated business-related employee transactions on Grab for Transport, Food, Mart, and Express Delivery services into one corporate solution; and employees leveraged Grab’s services within their organizations’ spending policies. Key results from the investment include elevated employee productivity and experience, as well as improved governance and compliance.
Key Findings
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
- Improved productivity due to automated expense claims, saving more than 34,700 hours, worth $780,000 over three years. As transactions are processed via Grab For Business and charged directly to the composite organization, employees no longer need to manage receipts from different service providers and submit reimbursement claims via expense management platforms. With Grab For Business, 350 employees save more than 11,500 hours a year, leading to an increase of around $780,000 in end-user productivity.
For with 0 end users, this benefit might be worth over three years.
- Improved efficiency for corporate service staff in managing employee spending, worth $25,000. Corporate service staff usually include HR teams, admins, project managers, etc., that check employee spending and track project expenses frequently. Grab For Business allows them to download organized data from the portal and export a report in under 30 minutes, rather than having to manually compile expense data into tables or spreadsheets.
For with 0 corporate service staff, this benefit might be worth over three years.
- Saved time and effort in processing payments accurately, worth $7,000. Eliminating the need for employees to submit expense claims, finance teams do not have to process reimbursements to employees. They also save time in having to correct errors during the reimbursement procedure.
For , with 0 finance staff processing reimbursement payments, this benefit might be worth over three years.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
- Improved employee experience (EX). Employees experience less individual cashflow burden as all transactions are charged directly to the composite organization via Grab For Business. They are also freed from the repetitive labor of reimbursement claims and can focus on more productive tasks.
- Strengthened governance. The composite organization is able to gain visibility into their employees’ daily spending and monitor these transactions accordingly. Manager levels can track expenditures anytime and ensure they are aligned with the right projects.
- Promoted compliance. With rules embedded in the Grab For Business portal, all valid transactions are kept in line with organizational policies. The data retrieved from Grab For Business may also help with taxation in some local regions.
- Increased budget predictability. The composite organization is able to predict project expenses based on records within Grab For Business and thus give clients realistic expectations of onsite project charges during the statement of work (SOW) stage.
- Scaled business across Southeast Asia. Grab For Business provides services across eight countries in Southeast Asia, and the composite organization leverages this coverage so that employees can easily travel outside their headquarters country for business purposes.
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
- Annual transaction costs of $290,000. The composite organization pays a transaction fee for all orders processed via Grab For Business due to corporate billing. This cost may vary, or even be eliminated, depending on the payment method and specific use cases.
For , the annual transaction costs could represent over three years.
- Implementation and ongoing management costs of $23,000. During initial setup, the composite organization’s in-house IT team worked to integrate Grab For Business with their internal HR system for data automation. The portal users also worked with Grab For Business to set up the portal and onboard end users, and they continued to monitor the platform in the long term.
For , the implementation and ongoing management costs might be over three years.
The representative interviews and financial analysis found that a composite organization experiences benefits of $811,000 over three years versus costs of $313,000, adding up to a net present value (NPV) of $498,000 and an ROI of 159%.
might experience benefits of over three years versus costs of , adding up to an NPV of and an ROI of 0%.
Key Statistics
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Return on investment (ROI)
159%159%
-
Benefits PV
$811K$811K
-
Net present value (NPV)
$498K$498K
-
Payback
Less than 6 monthsLess than 6 months
Benefits (Three-Year)
Increased productivity due to automated expense claims Increased efficiency in managing employee spending Saved time and effort in processing payments accuratelyTEI Framework And Methodology
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment Grab For Business.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Grab For Business can have on an organization.
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Due Diligence
Interviewed Grab For Business stakeholders and Forrester analysts to gather data relative to Grab For Business.
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Interviews
Interviewed five representatives from four organizations using Grab For Business to obtain data about costs, benefits, and risks.
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Composite Organization
Designed a composite organization based on characteristics of the interviewees’ organizations.
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Financial Model Framework
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
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Case Study
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Disclosures
Readers should be aware of the following:
This study is commissioned by Grab For Business and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Grab For Business.
Grab For Business reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
Grab For Business provided the customer names for the interviews but did not participate in the interviews.
Consulting Team:
Xin Tao, Zhi Tao Ng
Drivers leading to the Grab For Business investment
Interviews
| Role | Industry | Region | Total Number Of Users |
|---|---|---|---|
| Executive vice president of general affairs and property asset management | Energy | Indonesia | 70,000 |
| Corporate card and expense operations analyst | Entertainment | Regional headquarters in Singapore, with global headquarters in the US | 500 (in Southeast Asia) |
| Business development head | Professional services | The Philippines | 100 |
| People operations assistant manager Finance and operations manager |
Professional services | Malaysia | 30 |
Key Challenges
From the interviews, most employees had to travel frequently to different offices and workplaces either for daily work, client meetups, or business events. Employees would order taxis or ride-sharing services by themselves, and their organizations reimbursed daily travel expenses. The process is similar for claims on food, mart, and express delivery services.
The interviewees noted how their organizations struggled with common challenges, including:
- Tedious expense claim and reimbursement procedures. Although organizations were already using mature expense management solutions, employees found the reimbursement procedure monotonous and frustrating. An average employee spent hours each month finding scattered paper receipts, taking photos of each of them, and uploading these photos, as well as figuring out how to fill in detailed line items. Physical receipts could easily get lost or scratched, which would cause trouble for finance teams in the later stage.
- Lack of visibility into employee activities and related spending. Taxi receipts provided limited information on employee activities. Some organizations tried to set a limit to reimbursements for transport services, but they could not track or validate actual daily spending, nor adjust policies accordingly. Other interviewees mentioned that they manually recorded employee spendings into spreadsheets to create monthly reports for executives or clients, which could take days during busy periods.
- Employees burdened by daily cash flow. Most organizations reimbursed employees during their monthly payroll cycle, and delays were common if claims were not submitted on time. Employees had to bear large amounts of costs upfront and were constantly distracted by the reimbursement process, as they anxiously waited for the compensation. In the event when employees drove or took public transportation, it was difficult to validate the commuting costs, and they end up paying for business expenses out of their own pockets.
Investment Objectives
The interviewees’ organizations searched for a solution that could:
- Free employees from time-consuming reimbursement tasks.
- Consolidate expense claims and streamline reimbursement processes.
- Increase transparency of employee activities and manage spending.
- Provide employee benefits and boost EX.
Composite Organization
Based on the interviews, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the five interviewees from four organizations, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
The composite organization is a mid- to large-sized professional services firm headquartered in Singapore. It operates across APAC and has an annual revenue of $150 million. Most of its 500 employees are in client-facing roles, and they travel to offices and client sites daily.
Deployment characteristics. Seventy percent of the composite organization’s employees (350 individuals) are enrolled in Grab For Business as end users, and book Transport services for daily rides. They are also eligible for a funded meal ordered via GrabFood on work days. The composite organization also uses Express Delivery and Mart services on an ad hoc basis. In the meantime, a number of corporate service staff (e.g., HR, EX officers, administrators, and project managers) act as portal users.
has 0 employees, has 0 corporate services employees, has 0 finance employees who manage reimbursements, and the average employee expense claim is $0 for each claim.
Quantified benefit data as applied to the composite
Total Benefits
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Increased productivity due to automated expense claims | $307,499 $307,499 | $313,906 $313,906 | $320,312 $320,312 | $941,718 $941,718 | $779,627 $779,627 |
| Btr | Increased efficiency in managing employee spending | $9,617 $9,617 | $9,938 $9,938 | $10,258 $10,258 | $29,813 $29,813 | $24,663 $24,663 |
| Ctr | Saved time and effort in processing payments accurately | $2,555 $2,555 | $2,647 $2,647 | $2,738 $2,738 | $7,940 $7,940 | $6,567 $6,567 |
| Total benefits (risk-adjusted) | $319,672 $319,672 | $326,491 $326,491 | $333,308 $333,308 | $979,471 $979,471 | $810,857 $810,857 | |
Increased Productivity Due To Automated Expense Claims
Evidence and data. Grab For Business eliminated the need for end users to submit an expense claim and reimbursement. All expenses regarding Transport, Food, Mart, and Express Delivery services that abided by the organization’s reimbursement policies could be directly processed via corporate payment.
- Most interviewees mentioned that previously, employees had to submit expense claims every few weeks or months. Employees spent at least 30 minutes a month simply organizing receipts, taking photos of the receipts, and uploading them to the organization’s expense management platform for approval.
- Grab For Business consolidated Transport, Food, Mart, and Express Delivery services into one platform, and all related expenses could be directly billed to the organization instead. Employees no longer needed to collect paper or digital receipts from different service providers after rides or meals, and repetitive tasks such as filling in reimbursement reports and uploading receipt copies were eliminated.
Modeling and assumptions. For the composite organization, Forrester assumes:
- The composite organization has 350 end users who frequently work onsite, which requires transportation.
- An average end user takes two rides and consumes one meal on a work day, all at the composite organization’s expense. This is replaced by Grab For Business’ Transport and Food services.
- The composite organization occasionally orders express delivery services and groceries, which are replaced by Grab For Business’ Express and Mart services. The total number of such orders amount to 18 per year.
- Before using Grab For Business, 350 end users made an average of 44 errors a year as they filled out expense claims. For every mistake made, one hour is needed to communicate with finance teams to correct the error.
- The hourly wage of an end user employee is $48, and increases by 3% annually.
Risks. Organizations may realize results differ from those presented in the financial model due to:
- Difference in end user scale.
- Usage of Grab For Business’ Transport, Food, Mart, and Express Delivery services.
- Difference in frequency of transactions made via Grab For Business.
- Actual effort spent to correct errors during expense claims before using Grab For Business.
- Variance in employee salary.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $780,000.
For , this benefit may have a three-year, risk-adjusted total PV of .
Increased Productivity Due To Automated Expense Claims
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| A1 | Number of end users | CompositeComposite | 350350 | 350350 | 350350 |
| A2 | Average number of monthly transactions per person (Transport services) | Composite | 4444 | 4444 | 4444 |
| A3 | Average number of monthly transactions per person (Food services) | Composite | 2222 | 2222 | 2222 |
| A4 | Average number of monthly transactions in total (Mart and Express Delivery services) | Composite | 1.51.5 | 1.51.5 | 1.51.5 |
| A5 | Total number of transactions per month | A1*(A2+A3)+A4 | 23,10223,102 | 23,10223,102 | 23,10223,102 |
| A6 | Average time saved on expense claims per transaction (minutes) | Composite | 2.52.5 | 2.52.5 | 2.52.5 |
| A7 | Subtotal: Annual hours saved on expense claims | A5*12*A6/60 | 11,55111,551 | 11,55111,551 | 11,55111,551 |
| A8 | Hours saved on correcting errors during expense claims annually | Composite | 4444 | 4444 | 4444 |
| A9 | Hourly wage of end user employees | TEI standard | $48 $48 | $49 $49 | $50 $50 |
| A10 | Productivity conversion rate | Forrester research | 65%65% | 65%65% | 65%65% |
| At | Increased productivity due to automated expense claims | (A7+A8)*A9*A10 | $361,764 $361,764 | $369,301 $369,301 | $376,838 $376,838 |
| Risk adjustment | ↓15% | ||||
| Atr | Increased productivity due to automated expense claims (risk-adjusted) | $307,499 $307,499 | $313,906 $313,906 | $320,312 $320,312 | |
| Three-year total: $941,718 $941,718 | Three-year present value: $779,627 $779,627 | ||||
Increased Efficiency In Managing Employee Spending
Evidence and data. After reimbursement claims were submitted, organizations usually reviewed employee spending for quality assurance. Managers or HR teams tried to ensure the transactions were compliant and within budget. Some organizations had to report employee spending to executives or external clients as part of their project management routine.
- The business development lead at a professional services firm in the Philippines noted that he used to spend one to three days a month to organize spending information and compile data into spreadsheets, so that they could charge their clients for onsite visits. Grab For Business expedited this data reporting process to between 20 and 30 minutes.
- Another interviewee from a professional services firm in Malaysia noted that Grab For Business streamlined their organization’s internal project management process. Their HR team saved hours on tracking employee activities and monitoring overspending on projects.
Modeling and assumptions. For the composite organization, Forrester assumes:
- There are four portal users monitoring the Grab For Business portal from the back end. These portal users are corporate service staff who also track employee spending.
- Before using Grab For Business, a corporate service employee would spend 140 hours a year to check employees’ daily transactions, validate spending, and compile information to create reports.
- After using Grab For Business, the corporate service employee no longer needs to crosscheck transactions with spending policies. It takes a portal user 15 minutes to download data and export reports directly from the Grab For Business portal.
- The hourly wage of a portal user employee is $30, and increases by 3% annually.
Risks. Organizations may realize results differ from those presented in the financial model due to:
- Difference in number of portal users.
- Actual effort spent on checking and managing employee spending before using Grab For Business.
- Variance in portal user salary.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $25,000.
For , this benefit may have a three-year, risk-adjusted total PV of .
Increased Efficiency In Managing Employee Spending
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| B1 | Number of corporate service staff managing employee spending | CompositeComposite | 44 | 44 | 44 |
| B2 | Hours spent on checking and reporting spending per corporate service employee annually (before Grab For Business) | Composite | 140140 | 140140 | 140140 |
| B3 | Hours spent on checking and reporting spending per corporate service employee annually (after Grab For Business) | Composite | 33 | 33 | 33 |
| B4 | Hourly wage per corporate service employee | TEI standard | $30 $30 | $31 $31 | $32 $32 |
| B5 | Productivity conversion rate | Forrester research | 65%65% | 65%65% | 65%65% |
| Bt | Increased efficiency in managing employee spending | B1*(B2-B3)*B4*B5 | $10,686 $10,686 | $11,042 $11,042 | $11,398 $11,398 |
| Risk adjustment | ↓10% | ||||
| Btr | Increased efficiency in managing employee spending (risk-adjusted) | $9,617 $9,617 | $9,938 $9,938 | $10,258 $10,258 | |
| Three-year total: $29,813 $29,813 | Three-year present value: $24,663 $24,663 | ||||
Saved Time And Effort In Processing Payments Accurately
Evidence and data. Previously, finance departments had to ensure that the correct amount of money was returned to employees at the end of reimbursement processes. With Grab For Business, organizations saved time and effort since expenses relating to commuting, meals, groceries, and express deliveries were all paid directly via the platform.
- The corporate card and expense operations analyst from an entertainment firm with regional headquarters in Singapore said that two people from their payment team processed reimbursements on a weekly basis.
- The head of business development from a professional services firm in the Philippines said that four employees from their finance team worked to reimburse employees, and they spotted a few mistakes within the expense claims every month.
- The people operations assistant manager from a professional services firm in Malaysia noted that end users occasionally made mistakes when using expense claim systems. Some employees might have filled in the wrong project code or selected the incorrect transaction category, and finance teams had to go back to employees for more information. This resulted in extra hours spent waiting for turnarounds or correcting errors. These hassles were eliminated by Grab For Business as there was no reimbursement claim to begin with.
Modeling and assumptions. For the composite organization, Forrester assumes:
- Two finance staff work to process reimbursement payments.
- Before using Grab For Business, a finance employee spends 56 hours a year to process employees’ reimbursement claims.
- Before using Grab For Business, end users made 44 errors a year as they filled out expense claims, and for each error, a finance employee would need one hour to check the details with the end user and amend the errors accordingly.
- The hourly wage of a finance employee is $28, which increases by 3% annually.
Risks. Organizations may realize results differ from those presented in the financial model due to:
- Difference in number of finance staff managing reimbursement payments.
- Actual effort spent to correct errors in expense claims before using Grab For Business.
- Variance in employee salary.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $7,000.
For , this benefit may have a three-year, risk-adjusted total PV of .
Saved Time And Effort In Processing Payments Accurately
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| C1 | Number of finance staff processing reimbursement payments | CompositeComposite | 22 | 22 | 22 |
| C2 | Hours saved on processing reimbursement payments annually per finance employee | Composite | 5656 | 5656 | 5656 |
| C3 | Hours saved on processing reimbursement payments annually | C1*C2 | 112112 | 112112 | 112112 |
| C4 | Hours saved on correcting errors in expense claims annually | Composite | 4444 | 4444 | 4444 |
| C5 | Hourly wage per finance employee | TEI standard | $28 $28 | $29 $29 | $30 $30 |
| C6 | Productivity conversion rate | Forrester research | 65%65% | 65%65% | 65%65% |
| Ct | Saved time and effort in processing payments accurately | (C3+C4)*C5*C6 | $2,839 $2,839 | $2,941 $2,941 | $3,042 $3,042 |
| Risk adjustment | ↓10% | ||||
| Ctr | Saved time and effort in processing payments accurately (risk-adjusted) | $2,555 $2,555 | $2,647 $2,647 | $2,738 $2,738 | |
| Three-year total: $7,940 $7,940 | Three-year present value: $6,567 $6,567 | ||||
Unquantified Benefits
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
- Boost EX. All interviewees discussed how their employees grew significantly happier and more focused after their organization adopted Grab For Business. Employees felt a stronger sense of support and security as they no longer had to pay out of their own pockets and could redirect their time and effort to more meaningful work. The head of business development in the Philippines mentioned that their organization was one of the few companies in the region that provided such employee benefits, which helped them retain talent in a highly competitive industry.
- Strengthen governance. Grab For Business enabled transparency and visibility into employee activities and daily spending. The executive vice president of general affairs and property asset management from an energy company in Indonesia said that their employees used to hire carpooling services and they had to rely on rough monthly reports from the carpooling company, where the executives could only get an aggregated bill. Grab For Business provided real-time and detailed data, which allowed managers to estimate the actual number of rides needed throughout the entire organization and monitor employee usage of transport services.
- Promote compliance. Organizations could set spending rules from the Grab For Business portal to ensure that transactions by end users were aligned with the reimbursement policies. The corporate card and expense operations analyst from the entertainment industry said that their organization was a global company that had been fostering a culture of high trust. Grab For Business acted as an additional layer of risk management so that they could continue to empower employees. The business development head from the professional services firm in the Philippines also mentioned that transactions via Grab For Business were recorded and could be tracked and validated, whereas some local service providers had difficulty with providing receipts or invoices. This helped their organization stick to local tax policies.
Flexibility
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Grab For Business and later realize additional uses and business opportunities, including:
- Ability to improve budget predictability. The executive vice president of general affairs and property asset management from a large energy organization in Indonesia said their general affairs team frequently checked the Grab For Business portal to ensure that transportation expenses were within budget. The finance operations manager from a professional services firm in Malaysia noted that Grab For Business encouraged more informed decision-making in the long term. The data had become a reliable source of reference in drafting proposals and calculating project expenses. They were also thus able to predict daily expenses more accurately and justify those charges to clients.
- Help scale the business across Southeast Asia. Employees used Grab For Business during business trips across a wide range of countries in Southeast Asia — namely Singapore, the Philippines, Malaysia, Thailand, Vietnam, Indonesia, Myanmar, and Cambodia. Administrators could configure international traveler groups in the Grab For Business Portal, enabling employees to easily use Grab For Business for public events, business development, and client visits outside the cities or countries their headquarters are located in. An interviewee whose organization’s global headquarter is the US said that their global employees could opt in Grab For Business anytime, helping them expand business coverage from North America to the APAC region.
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
Quantified cost data as applied to the composite
Total Costs
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Dtr | Annual costs | $0 $0 | $116,642 $116,642 | $116,642 $116,642 | $116,642 $116,642 | $349,925 $349,925 | $290,071 $290,071 |
| Etr | Implementation and ongoing management costs | $18,303 $18,303 | $1,656 $1,656 | $1,711 $1,711 | $1,766 $1,766 | $23,437 $23,437 | $22,550 $22,550 |
| Total costs (risk-adjusted) | $18,303 $18,303 | $118,298 $118,298 | $118,353 $118,353 | $118,408 $118,408 | $373,362 $373,362 | $312,621 $312,621 | |
Annual Costs
Evidence and data. Organizations that processed Grab For Business payments via corporate billing paid an administrative fee for every transaction made, and their rates may vary.
- For most organizations, this transaction cost could be eliminated if they chose other payment methods, such as credit card.
- Actual rates and pricing may vary. Contact Grab For Business for additional details.
Modeling and assumptions. For the composite organization, Forrester assumes:
- With corporate billing, they pay an annual transaction fee at an average rate of 2.55%.
- The average dollar value of each transaction is $15 per end user.
Risks. Organizations may realize results differ from those presented in the financial model due to:
- Different payment methods.
- Difference in total transaction value via Grab For Business.
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $290,000.
For , these incremental fees may have a three-year, risk-adjusted total PV of .
Annual Costs
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| D1 | Total number of transactions per month (via Grab For Business) | A5 | 0 | 23,10223,102 | 23,10223,102 | 23,10223,102 | |
| D2 | Average transaction value | Composite | 0 | $15 $15 | $15 $15 | $15 $15 | |
| D3 | Transaction fee rate | Composite | 0% | 2.55%2.55% | 2.55%2.55% | 2.55%2.55% | |
| Dt | Annual costs | D1*12*D2*D3 | $0 $0 | $106,038 $106,038 | $106,038 $106,038 | $106,038 $106,038 | |
| Risk adjustment | ↑10% | ||||||
| Dtr | Annual costs (risk-adjusted) | $0 $0 | $116,642 $116,642 | $116,642 $116,642 | $116,642 $116,642 | ||
| Three-year total: $349,925 $349,925 | Three-year present value: $290,071 $290,071 | ||||||
Implementation And Ongoing Management Costs
Evidence and data. The implementation process of Grab For Business usually included planning, setup and onboarding, testing, and the final launch. Some use cases involved the integration with internal employee management systems.
- Most of the interviewees mentioned that the initial setup process was quick and straightforward, which usually took just a few hours. After implementation, portal users continued to monitor the platform settings.
- The corporate card and expense operations analyst from an entertainment firm with regional headquarters in Singapore recalled that their organization assigned one solution architect and one engineer to integrate Grab For Business with their employee management platform. This enabled the automatic on- and offboarding of end users on a large scale.
- The executive vice president of general affairs and property asset management from the energy firm in Indonesia said they had to integrate Grab For Business with their in-house transportation management platform, which required five IT employees to work on a part-time basis for more than two months. This was mainly due to complicated security configurations under local policy constraints in Indonesia.
- Employee rollout was simple, with no specific end-user training required. The people operations assistant manager from a professional services firm in Malaysia said that they only needed to send out notification emails within the organization, as employees were already familiar with Grab and its services.
Modeling and assumptions. For the composite organization, Forrester assumes:
- During initial setup, the composite organization integrates Grab For Business with its internal HR platform in order to automate end-user management. Two in-house IT employees dedicated 70 hours each as they worked with Grab For Business on data integration, including testing and trialing.
- The hourly wage of an IT employee is $45.
- The composite organization pays a one-time setup fee of $9,000.
- As portal users, four corporate service staff spends five hours each in the beginning to build accounts, implement policies, set up payment methods, and rollout the solution to employees.
- After implementing Grab For Business, each corporate service staff involved spends one hour a month to check employee spending, adjust expense policies, answer employee FAQs, and discover new features.
- The hourly wage of a corporate service staff is $29, and increases by 3% annually.
Risks. Organizations may realize results differ from those presented in the financial model due to:
- The need and complexity of integration, and number of in-house IT involved.
- Actual effort needed to set up and manage the Grab For Business portal.
- Difference in employee salary.
Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $23,000.
For , these costs may have a three-year, risk-adjusted total PV of .
Implementation And Ongoing Management Costs
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| E1 | Number of IT employees involved | Composite | 22 | 00 | 00 | 00 |
| E2 | Hours spent on integrating Grab For Business with internal platform per IT employee | Composite | 7070 | 00 | 00 | 00 |
| E3 | Hourly wage of an IT employee | TEI standard | $45 $45 | $0 $0 | $0 $0 | $0 $0 |
| E4 | Subtotal: Integration costs | E1*E2*E3 | $6,336 $6,336 | $0 $0 | $0 $0 | $0 $0 |
| E5 | Implementation costs | Composite | $9,000 $9,000 | $0 $0 | $0 $0 | $0 $0 |
| E6 | Number of corporate service staff involved | B1 | 44 | 44 | 44 | 44 |
| E7 | Hours of onboarding and ongoing management of Grab For Business | Composite | 55 | 1212 | 1212 | 1212 |
| E8 | Hourly wage of a corporate service employee | TEI standard | $29 $29 | $30 $30 | $31 $31 | $32 $32 |
| E9 | Subtotal: Onboarding and management costs | E6*E7*E8 | $580 $580 | $1,440 $1,440 | $1,488 $1,488 | $1,536 $1,536 |
| Et | Implementation and ongoing management costs | E4+E5+E9 | $15,916 $15,916 | $1,440 $1,440 | $1,488 $1,488 | $1,536 $1,536 |
| Risk adjustment | ↑15% | |||||
| Etr | Implementation and ongoing management costs (risk-adjusted) | $18,303 $18,303 | $1,656 $1,656 | $1,711 $1,711 | $1,766 $1,766 | |
| Three-year total: $23,437 $23,437 | Three-year present value: $22,550 $22,550 | |||||
Consolidated Three-Year Risk-Adjusted Metrics
Cash Flow Chart (Risk-Adjusted)
Total costs Total benefits Cumulative net benefits-
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
Cash Flow Analysis (Risk-Adjusted Estimates)
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($18,303)($18,303) | ($118,298)($118,298) | ($118,353)($118,353) | ($118,408)($118,408) | ($373,362)($373,362) | ($312,621)($312,621) |
| Total benefits | $0 $0 | $319,672 $319,672 | $326,491 $326,491 | $333,308 $333,308 | $979,471 $979,471 | $810,857 $810,857 |
| Net benefits | ($18,303)($18,303) | $201,374 $201,374 | $208,138 $208,138 | $214,900 $214,900 | $606,108 $606,108 | $498,236 $498,236 |
| ROI | 159%159% | |||||
| Payback period | <6<6 | |||||
Appendix A: Total Economic Impact
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
Total Economic Impact Approach
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Benefits represent the value delivered to the business by the product. The TEI methodology places equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization.
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Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over the existing environment for ongoing costs associated with the solution.
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Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated.
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Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
Appendix B: Supplemental Material
Related Forrester Research
“The Forrester Tech Tide™: B2B Payment Augmentation, Q1 2022,” Forrester Research, Inc., March 23, 2022.
“The ROI Of Supply Chain Management,” Forrester Research, Inc., April 6, 2022.
Appendix C: Endnotes
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
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