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Over the past few years, aggregation business model has witnessed a drastic rise across the globe especially in on-demand transport sectors. A lot of these on-demand aggregators have begun to disrupt the space with their unique products and services be it taxis, hotels, groceries, food and travel.
What is Aggregation business model?
According to the internet definition, it is a network model where the firm collects the information about a particular good/service providers, makes the providers their partners, and sell their services under its own brand.
In fact, this business model was initially originated within the transportation and mobility sector in an attempt to comply with the requirement for services that can promote both on-demand commuting and logistics.
Booking Holdings strategic tie-up!
n this regard, Booking Holdings, the online accommodations and travel e-commerce company and Grab Holdings Inc, the on-demand transportation and mobile services company have announced a strategic partnership to broaden and simplify travel solutions for travellers in Southeast Asia and around the globe.
With the partnership, Booking Holdings’ brands can now offer on-demand transport services through their apps, powered by Grab, and Grab customers will be able to book accommodations across the globe powered by Booking.com and Agoda.
Moreover, Booking Holdings has invested US$200 million in Grab, recognising the potential of the company. Having said that, Grab has raised over US$2 billion for its current round of financing and is on track to raise over US$3 billion by the end of this year.
Todd Henrich, SVP and Head of Corporate Development for Booking Holdings, said, “Grab has scaled impressively across Southeast Asia over the last few years, establishing itself as a recognized leader in an increasingly competitive space, and we’re excited to partner with them to build even better travel experiences through technology.”
Presence in 235 cities in 8 countries
Furthermore, this collaboration allows Grab users to book travel-related services through the app for the first time and pay through GrabPay digital wallet as well. Notably, Grab has its presence in 235 cities in 8 countries and enables 8 million micro-entrepreneurs through its platform.
Ming Maa, President of Grab said “We are delighted to work with Booking Holdings to give our users even more everyday services to choose from when they open the Grab app. The online travel market in Southeast Asia is set to nearly triple by 20251 and we see numerous synergies between travel and transportation that will allow us to capitalize on this huge opportunity. As a global travel leader, Booking’s investment into Grab is a vote of confidence in our continued ability to execute and expand into different O2O verticals, and roll them out across the 235 cities in which we operate.”
It’s just the beginning
Reportedly, we are just starting and about to witness a significant growth due to increasing adoption of the aggregator business model in the upcoming years. In this case, the growth of this market is expected to be led by rapid urbanisation, increasing demand from the corporate sector, and rising per capita income.
Stay tuned to Silicon Canals for more updates in the tech startup world.