GRAB is launching a fund with an initial capital of US$275 million to support programmes aimed at improving the lives of its drivers, delivery riders and merchants, as well as other communities in South-east Asia.
Grab will seed the fund, called GrabForGood Fund, with US$50 million in cash and US$200 million in expected value of Grab shares.
Chief executive and co-founder Anthony Tan, co-founder Tan Hooi Ling and president Ming Maa have pledged a combined US$25 million in expected value of Grab shares.
Up to US$20 million in cash from the fund has been allocated to fully subsidise the cost of Covid-19 vaccines and vaccine administration for eligible drivers and delivery riders who are not covered by a national vaccination programme.
Apart from this, Grab said the endowment fund will support a mix of programmes aimed at delivering long-term impact in areas such as education, financial support for underserved communities, and environmental issues.
An advisory board for the fund will be formed to give Grab partners and the broader South-east Asia community representation in giving feedback and recommendation on how the funds will be spent.
For Grab partners, this could mean insurance products at discounted rates, education scholarships, and financial aid for persons with disabilities.
For the broader community in South-east Asia, potential areas of funding include financial and digital literacy programmes, grants or incentives related to tackling climate change, and financial support for vulnerable groups affected by natural disasters.