Siam Commercial Bank announced on Tuesday that Robinhood, the commission-free app offering on-demand services like food delivery and hotel booking, will cease operations on July 31. The decision comes as SCB X Plc, the bank’s holding company, determined that Robinhood had fulfilled its mission of supporting merchants, riders, and small businesses during the Covid-19 pandemic.
Despite reporting a revenue increase to 724 million baht in 2023, up 34% year-on-year, Robinhood’s operating losses widened to 2.1 billion baht, prompting the board of SCB X to approve the closure of the subsidiary Purple Ventures Co Ltd.
SCB X emphasized that discontinuing the service is part of a strategic capital management approach aimed to optimize shareholder returns. They assured that this move will not impact the SCBX Group’s strategic goals or its commitment to advancing the business as a leading financial technology group.
Robinhood, known for its popularity and large customer base in Bangkok, will halt operations at 8 pm on July 31. While the app did not charge commissions in key services like food delivery and hotel booking, it did impose modest transaction fees, as well as platform fees for other offerings such as ride-hailing, which were lower than those of competitors like Grab.
Over the past four years, especially during the height of the Covid-19 crisis, Robinhood has been instrumental in aiding merchants and businesses in Bangkok and surrounding areas, along with key tourist spots. The app also created employment opportunities for thousands of riders during challenging times, significantly improving their livelihoods.
Customers will no longer be able to use the Robinhood app after July 31, 8 pm, although merchants, riders, and drivers can continue using the Robinhood Shop, Robinhood Rider, and Robinhood Driver applications for transactions until the same time. For more details, individuals can contact the Robinhood call center at 02-777-7564.
