Robinhood app to cease operations on July 31, SCB announces
Thailand’s beloved Robinhood application will cease operations on July 31, as announced by Siam Commercial Bank (SCB) yesterday. Offering commission-free food delivery, hotel booking and various other services, Robinhood announced that they have fulfilled their mission of supporting riders and small businesses during difficult times.
SCB X Plc, the holding company for SCB and its affiliates, stated that Robinhood had fulfilled its mission of supporting merchants, riders, and small businesses during the Covid-19 pandemic. The loss-making business operated by Purple Ventures Co Ltd faced the closure decision by SCB X’s board.
Despite a reported revenue of 724 million baht in 2023, a 34% increase year-on-year, its losses grew to 2.1 billion baht from 1.9 billion baht the previous year due to continued service expansion and subsidised pricing.
“The cessation of services aligns with a sound capital management framework aimed at maximising shareholders’ returns,
“This decision will not affect the SCBX Group’s strategic plans or its commitment to developing the business in accordance with its mission to become a leading financial technology group,” said SCB X.
The Robinhood app, which garnered millions of downloads and a substantial customer base, particularly in Bangkok, did not charge commission fees for core services like food delivery and hotel booking. Instead, it imposed modest transaction fees and platform fees for other services, such as ride-hailing, though these were lower than competitors like Grab.
Helpful hand
SCB Group spoke on the roles and the effects that Robinhood had in the Thai economy, by not only providing job opportunities but also providing businesses with the opportunity to stay afloat during difficult times.
“In four years, particularly during the peak of the Covid-19 crisis, the Robinhood application has played a pivotal role in mitigating the challenges faced by merchants and businesses in Bangkok, its surrounding metropolitan areas, and key tourist destinations.
“Robinhood has steadfastly supported these establishments until they could resume normal operations. Furthermore, the platform has been instrumental in creating jobs for tens of thousands of riders during difficult times, ensuring fair treatment and significantly enhancing their livelihoods.
“For customers, Robinhood has served as a mediator for providing a variety of choices at equitable prices, becoming a platform of kindness throughout the national emergency with full financial support from the SCBX Group.”
From July 31 at 8pm, customers will no longer be able to use the Robinhood application. Similarly, merchants, riders, and drivers face the same deadline for accessing the Robinhood Shop, Robinhood Rider, and Robinhood Driver applications for transactions, reported Bangkok Post.
