Robinhood, an application for an on-demand delivery service platform under SCB X, plans to apply for two financial business licences that are expected to generate core income over the long term.
The delivery platform is preparing to apply for a nanofinance licence and an insurance brokerage licence from the relevant regulatory bodies, expecting to start the operation of these services next year, said Srihanath Lamsam, managing director of Robinhood, which was developed by SCB X subsidiary Purple Ventures Co.
In the absence of these licences, Robinhood has been recommending the financial products of other SCB X subsidiaries to its customers. As a result, the company sees greater opportunities in these businesses, said Mr Srihanath.
He said financial services would eventually generate the largest portion of the firm's total income over the long term.
These services are expected to account for more than 50% of the company's total revenue.
Robinhood plans to offer several new services in addition to food delivery and hotel bookings, which are its core offerings, said Mr Srihanath.
Robinhood's food delivery and hotel booking services do not charge a gross profit (GP) fee from merchants and hotels. The GP is a commission fee applied to food vendors or hotels by online platforms.
The platform launched these services during the pandemic with the objective of supporting struggling small restaurants and hotels, while offering greater convenience to consumers.
The lack of a GP fee means it takes longer for Robinhood to generate income from these two services, he said.
Mr Srihanath said Robinhood initiated a shopping service over the past two months, where customers direct the platform to buy products for them at grocery stores and certain other shops.
The service charges a GP of up to 15% to grocery stores, compared with a maximum rate of 25% on other platforms, he said.
The service has generated roughly 2,000 orders per day, which is expected to increase to 10,000 orders in 2023, said Mr Srihanath.
Robinhood plans to launch two new services later this year: express item delivery and ride-hailing.
The company obtained a ride-hailing licence from the Department of Land Transport, covering both private and public vehicles.
In addition, Robinhood plans to expand by offering an electric vehicle rental service next year after a soft launch took place late last year, he said.
The company expects to generate a net profit in 2025 or 2026, then plans to raise funds for business expansion in the longer term, Mr Srihanath said.
There have been 3.2 million total downloads of the Robinhood app, with 270,000 participating merchants and 32,000 delivery drivers.
Food orders via the platform stand at around 100,000 per day.
