SERVICE COMPANY: GRAB

Commuting on a daily basis is not easy not only because of the traffic, but also

because of the wasted time commuters spend on getting a ride. In the Philippines, as

well as other Southeast Asian countries, getting a taxi has always been a struggle and

unfortunately sometimes, it is also not safe. This is how Grab saw the opportunity to

create a company that could fix the problem of commuters. Grab is a service company

that provides privates vehicles for commuters through booking a ride via a mobile

application. Innovative, essential, convenient, safe – these are just a number of reasons

why Grab made an impact despite starting their company only in the year 2012. But as

years go by, Grab has extended the list of services they offer.

Here are the services Grab offers:

1. Grab Taxi

Grab Taxi lets users find the nearest taxi available in the area. Similar to how

taxis work, the fare will be based using a meter, depending on how far the

destination is.

2. Grab Car

Grab Car lets users book a private vehicle available in the area. Unlike the Grab

Taxi that is meter-based, Grab Car’s has a fixed rate regardless of the duration of

the trip due to traffic.

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3. Grab Share

Grab Share lets users share a ride with other passengers. This service is

commonly known as “Carpooling”. This service is said to be 30% cheaper

compare to other commuting services that grab offers. Users need to match with

other passengers who are going in the same destination or direction. Grab Share

take longer time compared to other services grab offers, so this caters more to

those who are not really in a hurry.

4. Grab Express

Grab Express operates only in Metro Manila and Cebu City as of now. Compared

to the first two services mentioned above, this is the first service Grab offered

that does not transport passengers. Similar to how shipping company works,

Grab Express users can book a rider to pick up the items that needs to be

shipped – documents, gifts, parcels, etc. The charge for the service is in fixed

rate, but the user can choose the Cash on Delivery option, where in the recipient

is the one to pay the service.

5. Grab Food

Grab Food is a delivery service that connects local food business to the people.

Grab has made some partnership with different restaurants and food chain to

deliver food to people who do not have the time to go out and brave the street

traffic. This service is relatively new and is still not available nationwide.

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 Before Grab came into the market, there was Uber. These two companies are in

competition with each other but then Grab vanquished Uber out of Southeast Asian

countries because of Grab’s strategies.

Here are the strategies used by Grab:

1. Understanding The Market

Also known as Hyperlocal strategy, which means being aware of what the

locals/customer in the particular area needs. Grab offers different types of

services, depending of the needs of customers within the area. For example, in

Vietnam and Indonesia, Grab operates a service called Grab Bike. Grab knows

that these countries depend on motorbikes as their main mode of transportation.

Grab took the effort to be familiarized on how the locals live their daily lives and

used it as an advantage to provide essential and efficient services for the locals.

2. Providing Quality Customer Service

The core philosophy of Grab is to provide speed, safety, and certainty with their

customers. That’s why they can easily be reached out by customers to ensure

their comfort. Grab is active in different social platforms, such as Twitter and

Facebook messenger, to cater to customers who are inquiring or complaining.

3. Catering To Individual Needs

Upon booking in Grab Car, users are given an option to choose a 4 seater, a 6

seater or a 13 seater. Grab is aware that each customer has its own preference.

Grab is also aware that some customers are budget-conscious, and that’s why

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they offer Grab Share for those who are willing to share a ride with others to

lessen the fare. This is also the reason why Grab expanded their operation from

starting as a service company that transfer passengers, they now cater to

individuals who doesn’t need a ride but needs to transfer items such as food or

packages.

4. Giving Value To Their Customers & Employees

One reason that many choose to book a ride on Grab is because they feel that

their safety is being valued. Regular taxi passengers and drivers experience daily

harassment and crimes because their ride details are not monitored. Through the

Grab mobile application, passengers and drivers ride journey is tracked if both

arrive in their destination safely. Also, the passenger and the driver can rate each

other, so that future passengers and drivers can be wary if the individual can be

trusted.