Robinhood, the application offering commission-free services including on-demand food delivery and hotel reservations, will shut down on July 31, as announced by Siam Commercial Bank on Tuesday.
SCB X Plc, the parent entity of the bank and its affiliates, stated that Robinhood had fulfilled its role in supporting merchants, delivery personnel, and small enterprises during the Covid-19 outbreak.
On Tuesday, the board of SCB X approved the decision to close down the unprofitable business operated by its subsidiary, Purple Ventures Co Ltd.
In 2023, Purple Ventures recorded a revenue increase of 34% year-on-year, reaching 724 million baht. However, its losses expanded to 2.1 billion baht from 1.9 billion, despite broadening its services and maintaining subsidized pricing.
SCB X declared that ending the services is part of a strategic approach to sound capital management aimed at optimizing shareholder returns, according to a statement released to the Stock Exchange of Thailand.
The group emphasized that this closure will not interfere with the strategic objectives of SCBX Group or its ongoing mission to evolve into a top financial technology entity.
The Robinhood app, particularly popular in Bangkok, garnered millions of downloads and built a substantial user base.
It offered no commission fees for primary services like food delivery and hotel bookings but did apply modest transaction and platform fees for additional services like ride-hailing, which were still below those of competitors like Grab.
During its four-year operation, especially at the height of the Covid-19 crisis, Robinhood significantly alleviated the hardships faced by merchants and businesses in Bangkok and its neighboring regions, as well as major tourist spots, as stated by SCB.
Robinhood consistently supported these businesses until they were able to resume normal functions and played a key role in generating employment for tens of thousands of delivery riders, improving their conditions and significantly bettering their economic situation.
For consumers, Robinhood acted as a facilitator, offering a wide range of options at fair prices and serving as a beacon of support throughout the national crisis, fully backed financially by the SCBX Group.
The company announced that starting from July 31 at 8 PM, the Robinhood application will be permanently unavailable for customer use.
Until then, merchants, riders, and drivers may continue to conduct transactions using the Robinhood Shop, Robinhood Rider, and Robinhood Driver applications.
