- 20/09/2016
- Category: Commentaries
Recent announcement of Digi.com to hold their investment in the novel launched web and smart phone based app on household gas delivery service, GrabGas, makes us ponder on why the decision is altered. The fact that controversy came to surface as the former CTO (Chief Technology Officer), Julian, disclosed and complained over the working agreement and working loads during the time he helped cultivating the startup has spurred many analysts to review the GrabGas.[1] Alas, in the end, Julian’s name is not being mentioned on the website after being involved and supported by Digi Accelerate Programme and the share profit that was being given after Julian did the work was paid undervalue, RM30k for tech alone (the market rate is 40k-60k).[2] Today, as mobility startups are starting to grow massive in Southeast Asia, many specific sectors in society are being included into the smart phone application, including the case of GrabGas. However, once again we must put the fact into consideration that all the new startups need to comprise unique ideas and to adapt with ambivalent conditions on the field. In other words, the announcement of Digi.com not to invest in GrabGas is not something beyond special and yet must be scrutinized, so that the rationale behind decision is a lesson-learned for other startups.
With one crucial part of team started to unveil the process of creating the startup from the scratch in the country of origin, GrabGas Malaysia has to face crumble over the investment to support them. Apparently, many investors are behind the establishment and one is now redefining different prospects of GrabGas since the incident. The recent controversy has undermined investors’ decision to keep investing on GrabGas as a whole. Until this article is being written, the writer who is based in Indonesia, frankly assume that the idea behind the GrabGas is indeed significant to fulfill the mobility service that almost every individual needs at home, a household gas. A household gas industry in many countries of Southeast Asia is a gigantic market that can be connected from them as the vendor to the consumers with the innovation of GrabGas.[3] Malaysia as the origin country of GrabGas shows the major increase on the residential consumption of gas by demonstrating double number (37,616 mmBtu) of consumption in 2014, compared to the year of 2009 (18,565 mmBtu).[4] Though, in the case of GrabGas the roadmap to clarify the progress of establishing the startup was vague and not even being mentioned in specific agreement that conclude same – page – understanding between any partner under the startup umbrella.
At this point, the writer opts to believe that starting a startup from the focus integration of startup to the ultimate part of the startup, the initiators’ integrity, is undeniably principal. The prudence of the startup is started with the clear definition of task, equipped with well-identified management task and target in it. This is where incubating process of startup is important and thus there is no need to be in a hurry in simply making the startup viral without even considering the challenges that might unravel after. Taking account the fact that GrabGas only needed one year (started in October 2015) to establish such massive cover of new startup where the trust of future consumers and the investors are neither certain; making the readiness of GrabGas once again is being hesitated.[5]
Finally, the case of GrabGas is the case of one startup that has decided to start a huge startup by engaging the external actors (in this case, the investors and consumers) without verifying the internal check-ups. The startup supposedly has to ensure the roadmap to congeal the progress of building the startup. So that, every partner related in nurturing the new-established-startup is clarified from the point of interest, to the point of cost – sharing or benefits – sharing. And, it seems like since day one to days later, the agreement between CTO and GrabGas initiators can be interpreted as miscommunication that leads to the bleak leak of the former CTO statement and distrust from one investor and active accelerator, Digi.com. The case of GrabGas is a story that other startup players in the region must learn and evaluate to certify that starting up a startup is not only a matter of concluding agreement without meticulously monitoring the sharing tasks nor thoroughly envisaging the prospects and challenges. This applies not only to the side of startup itself, but also to every part of the startup, founder, co- founder, and every shareholder in it.[6] Many startups fail to neither compete with other competitors nor complete with the main firstly targeted aims as they continue to put less considerations on auditing the internal scheme before grabbing the momentum to succeed.
[1] Michael Tegos, “CTO quits startup, takes tech with him after team ‘screwed him over’”, 26 August 2016, (TechinAsia.com, online), , accessed 10 September 2016
[2] Julian Ee, “A tale of lies and deceit. My experience on how GrabGas screwed me over,” 25 August 2016, (online),
, accessed 11 September 2016
[3] Department of Statistics, Malaysia, “Report on Household Expenditure Survey 2014”, 17 November 2015, (online), <https://www.statistics.gov.my/index.php?r=column/ctheme&menu_id=amVoWU54UTl0a21NWmdhMjFMMWcyZz09&bul_id=cGpPdWw3REhucFZPdXRpek1Jd3FZUT09>, accessed 09 September 2016
[4] The Malaysia Energy Information Hub (MEIH), “Gas Distribution Statistics – Natural Gas Consumption 2009 – 2014”,(online), http://meih.st.gov.my/statistics;jsessionid=C012CF6040605FA616556F1E6E8D2D85?p_auth=sqbUggX6&p_p_id=Eng_Statistic_WAR_STOASPublicPortlet&p_p_lifecycle=1&p_p_state=maximized&p_p_mode=view&p_p_col_id=column-1&p_p_col_pos=1&p_p_col_count=2&_Eng_Statistic_WAR_STOASPublicPortlet_execution=e1s1&_Eng_Statistic_WAR_STOASPublicPortlet__eventId=ViewStatisticEG1&categoryId=9&flowId=22>, accessed 10 September 2016
[5] Julian Ee, 25 August 2016, (online), accessed 11 September 2016
[6] Also being recommended by several Malaysian startup industry players, found in, Dayana Sobri, “Malaysian industry players weigh in on the GrabGas controversy”, 30 August 2016, e27.com (online), <https://e27.co/malaysian-industry-players-weigh-in-on-the-grabgas-controversy-20160830/>, accessed 15 September 2016
