(CTN News) – Siam Commercial Bank (SCB) announced that its Robinhood app, a commission-free application for on-demand food delivery, hotel booking, and other services, will cease operations on July 31, 2024.
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.
However, the loss-making business operated by Purple Ventures Co Ltd faced mounting financial losses, with revenue of 724 million baht in 2023 but a widening loss of 2.1 billion baht, up from 1.9 billion the previous year.
SCB X said the decision to shutter Robinhood aligns with a “sound capital management framework aimed at maximising shareholders’ returns” and will not affect the group’s strategic plans to become a leading financial technology group.
Despite not charging commission fees for core services like food delivery and hotel booking, Robinhood had attracted millions of downloads and a large customer base, particularly in Bangkok. It charged modest transaction fees and platform fees for other services, which were lower than competitors like Grab.
SCB highlighted Robinhood’s pivotal role in supporting merchants, businesses, and riders during the COVID-19 crisis, providing job opportunities and fair treatment for tens of thousands of riders.
The app also served as a “platform of kindness” for customers by offering a variety of choices at equitable prices.
Robinhood App Shutdown Timeline
From July 31 at 8 pm, customers will no longer be able to use the Robinhood app, while merchants, riders, and drivers can access the Robinhood Shop, Robinhood Rider, and Robinhood Driver applications until the same deadline.
