GRAB FACES CHALLENGES HEAD-ON

Grab is ramping up efforts to deliver on its Super App service ahead of renewed competition. Grab will invest "tens of millions of dollars" into boosting its safety features. A lot of the safety technology will revolve around areas such as the verification of driver identities, driving down crime and reducing fake bookings and rides. The technology will hide mobile numbers on the app so that the incidence of harassment and unwanted post-ride contact will be reduced.

Grab is planning to roll out an Electronic Road Pricing (ERP) calculator that would automatically add ERP charges to the ride fare, this feature was requested by about 40 per cent of Grab drivers, some who at times would forget to key in the additional fees at the end of the trip. In February 2019, Grab announced the launch of a new transport service, GrabPet, which allows pet owners in Singapore to travel comfortably with their pets that includes additional insurance coverage for pets onboard. The GrabPet service will be provided by drivers trained in pet-handling. Their vehicles will be equipped with a foldable back seat cover with an adjustable leash for suitable pets. Drivers are also equipped with an in-car kit comprising a microfibre towel and air freshener to ensure a well-maintained and clean car for the next ride.

With more Singaporeans working from home, both Grab and Deliveroo said they had each seen a 20 per cent increase in food orders in the past 6 months. Foodpanda meanwhile said it has seen a 10 per cent week-on-week increase in order across its various food and grocery delivery platforms.

"Food's a big part of our growth plans. We will be expanding our GrabFood and delivery business and deepening our relationships with our restaurant merchants and our key partners in some markets," Grab's Singapore Head Lim Kell Jay said. The company has been exploring various food business concepts. It is wooing users with local favourites such as durian and Jenny Bakery cookies all the way from Hong Kong. It has also been rolling out S$1 deals featuring bubble tea and McDonald's chicken nuggets, among others.

Grabcar, its private hire car hailing service also faced increased competition with the entry of fellow competitor Gojek in Singapore. The Indonesia-based company rolled out its beta app in November 2019, ending months of anticipation. Taxi operator ComfortDelGro is also stepping up its game. It announced that it was teaming up with Finnish startup MaaS Global to launch a subscription-based service that combines several modes of transport in one trip.

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The earnings of both taxi and private-hire car drivers have dropped as compared to before Covid-19, following a stop in tourists coming in and other changes such as a push towards telecommuting. Their earnings were hardest hit during the circuit breaker period between April and June, when most of Singapore stayed home. With the slowdown in the economy and many Singaporeans forced to take a pay cut or no pay leave, many have also turned to public transport instead of hiring taxis or private hire cars. Although the situation has gradually improved with the opening up of economy in Phase 2, business for its ride-hiring and taxi services has been slow.

Grab is grateful for the Covid-19 support packages introduced by the Singapore Government to help its private-hire car drivers where more than $216 million were pumped in to help the sector. Through the Special Support Fund, Grab private-hire car drivers are able to get relief of $300 per vehicle per month till end-September 2020. Drivers have also been able to tap the Self-Employed Person Income Relief Scheme, which provides eligible self-employed persons with $1,000 per month for nine months.

Grab is concentrating on enhancing the experience of users, drivers and merchants. Grab have also introduced additional services such as GrabPay into other businesses (cashless payments); GrabExpress for quick and easy deliveries and GrabRewards to thank their loyal customers who can earn rewards such as discounts and monthly subscription services. The $2.50 per month subscription service entitles customers to discounts on Grab services and also at stores such as Fairprice, Zalora and more.

Which type of decision-making process: extensive problem-solving, routine problem-solving or limited problem-solving would be undertaken by a consumer trying out GrabPet service for the first time? Would this customer go through every step of the decision-making process?