Estimating The Cost Of Building An App Like Grab For Entrepreneurs

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Sasi George

Grab is a super app offering a wide range of services that include ride-hailing, food delivery, and payments, to over 670 million people across Southeast Asia.

Understanding Grab

Some key features and functionalities of Grab:

Ride-hailingGrab’s ride-hailing is to book a car, motorbike, or taxi in minutes.
GrabFoodFood delivery service.
GrabPay is a mobile wallet to pay for Grab services, as well as at participating merchants.
GrabRewardsis a loyalty program to earn points for every dollar you spend or redeem points.
GrabInsureis a travel insurance program to cover medical expenses, trip cancellation, and other travel-related risks.
GrabExpressis a same-day delivery service to send packages and documents.

When creating your own super app, you can consider adding additional features that are relevant to your target market.

Pricing & Timeline

The cost of building an app like Grab would largely depend on the location of your development team. We have collated the development cost and timeline estimates on few regions across the globe.

Country / RegionPricingTimeline
Illinois, USA$300,000 – 350,000 6 – 12 Months
Europe, Czech Republic $150,000 – 300,0006 – 12 Months
Europe, London$250,000 – 300,000 6 – 12 Months
South East Asia, Vietnam$62,500 – 73,00011 – 13 Months
India$25,000 – 35,0004 – 8 Months

Cost Factors to Consider

The development cost of building a super app like Grab will vary depending on the following factors:

App complexity and features

The more complex and feature-rich an app is, the more expensive it will be to develop. For example, an app that offers multiple transportation options, food delivery, and payments will be more expensive to develop than an app that only offers transportation.

This factor can account for 50-60% of the total development cost.

Platform compatibility (Android, iOS, web)

If you want your app to be available on multiple platforms, such as Android, iOS, and web, this will increase the development cost. This is because you will need to develop separate versions of the app for each platform.

This factor can account for 10-20% of the total development cost.

Backend infrastructure and cloud services

The backend infrastructure and cloud services you use will affect the development cost. For example, if you use a more expensive cloud service, such as AWS, this will increase the development cost.

This factor can account for 10-20% of the total development cost.

Third-party integrations (payment gateways, maps, etc.)

If you want to integrate third-party services into your app, such as payment gateways or maps, will also increase the development cost. This is because you will need to pay for the integrations and the development time required to integrate them into your app.

This factor can account for 5-10% of the total development cost.

Development team size and location

The size and location of your development team will also affect the development cost. A larger team will cost more than a smaller team, and a team located in a more expensive location will also cost more.

This factor can account for 5-10% of the total development cost.

Based on these factors, the cost of building an app like Grab could range from $50,000 to $500,000 or more in different regions of the world.

Development Process

There are three main development approaches: native, hybrid, and cross-platform.

Native development

Native development is the traditional approach involving building separate apps for each platform. This gives you control over the user experience and performance, but it’s longer develop and costs more.

Hybrid development

In this approach a single codebase is used to build apps for multiple platforms. This can save time and money, but performance and user experience could lack.

Cross-platform development

This newer approach uses a cross-platform framework to build apps for multiple platforms. You can save time and money, but performance and user experience could lack.

PROSCONS
Native DevelopmentBest performance and user experienceLonger development time
Full control over the app’s code and designHigher development costs
Easy to integrate with native platform featuresSeparate development teams for each platform
Hybrid DevelopmentShorter development timeCan have performance and user experience issues
Lower development costsNot as easy to integrate with native platform features
Just one development team needed
Cross-Platform DevelopmentShorter development timePerformance and user experience issues
Lower development costsIntegrating with native platform features difficult
Needs only one development team

Selecting The Appropriate Technology Stack

A suggested technology stack to build an app like Grab would be:

Front-end

React NativeA cross-platform framework that allows developers to build native apps for iOS and Android using JavaScript.
ReactA JavaScript library for building user interfaces.
ReduxA state management library for React.
Material UIA React component library that provides a consistent user interface across different platforms.

Back-end

Node.jsA JavaScript runtime environment that is commonly used to build scalable and reliable web applications.
ExpressA web framework for Node.js that makes it easy to build APIs and web applications.
MongoDBA NoSQL database that is well-suited for storing large amounts of data.
RedisA key-value store that is often used as a cache for database queries.

Hosting

Amazon Web Services (AWS)A cloud computing platform that provides a wide range of services, including hosting, storage, and computing power.
Google Cloud Platform (GCP)A cloud computing platform that provides a similar range of services to AWS.
Microsoft AzureA cloud computing platform that provides a similar range of services to AWS and GCP.

The considerations when choosing a technology stack would be cost, skill level of the team, and community to find support.

The cost of building an app like grab - the growth to super app

Some basic functionalities a super app requires

1. Messaging and Social Networking
2. E-commerce and Online Shopping
3. Ride-Hailing and Transportation
4. Food Delivery and Ordering
5. Financial Services and Payments
6. Entertainment and Media
7. Utilities and Lifestyle Services

Top super apps worldwide

SL. No.Super AppFunctionalities
1WeChatMessaging, social networking, e-commerce, mobile payments, ride-hailing, food delivery
2AliPayMobile payments, money transfers, wealth management, and other financial products
3GojekFood delivery, payments, on-demand services, and more.
4PayTMMobile payments, digital wallets, online shopping, ticket booking, financial services, and more.
5KaKaoTalkMessaging, social networking, e-commerce, payments, gaming, and more
6LINEMessaging, social networking, digital payments, gaming, e-commerce, and other services.

Conclusion

The best development approach for your super app will depend on your specific needs and requirements. If you need performance and user experience, native development is the best option. To save time and money, hybrid or cross-platform development may be a better choice.

Larger and more complex apps are more difficult to develop with hybrid or cross-platform frameworks.

Ultimately, the best way to choose a development approach is to consult with a mobile app development expert. They can help you assess your needs and requirements and recommend the best approach for your project.

Disclaimer: The Blog has been created with consideration and care. We strive to ensure that all information is as complete, correct, comprehensible, accurate and up-to-date as possible. Despite our continuing efforts, we cannot guarantee that the information made available is complete, correct, accurate or up-to-date.

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