No more Grab discounts in S’pore but monthly subscription plan available, Grab says

[beyond]

The days of Grab promos in Singapore are over.

Grab’s top executive, Lim Kell Jay, told Today on Dec. 9, 2018 that promos are not the way forward.

Lim said Grab, which is based in Singapore, has learnt from experience that commuters are “going to be pissed” when promotions are withdrawn and this method is unsustainable.

He made these comments a week after Indonesian ride-hailing firm Gojek launched its trial app here with promotions to attract riders.

Promos disappeared

Grab has withdrawn its promo codes in Singapore since March 2018, after taking over Uber’s regional business.

Grab had been giving out promos in a bid to wrestle with Uber for market share.

In September, Singapore’s competition watchdog ruled the Grab-Uber deal was “anti-competitive”.

To protect riders’ and drivers’ interests, the watchdog will put in place measures, such as dismantling Grab’s exclusive arrangements with taxi operators.

But these measures might not come to pass if a rival firm attains at least 30 percent of the rides matched across ride-hailing services for half a year.

Other solutions

Calling promos “short-term”, Lim said Grab has “moved on” from ad hoc perks and is working to bring longer-term value to commuters.

So, there will be no price war with Gojek.

“We need to take a much longer view. We are not here to fight that short war,” he told Today.

Instead, Grab is looking to its GrabRewards programme and GrabClub to bring more value.

GrabClub is a recently launched monthly subscription scheme offering ride and food delivery discounts for a fee.

Grab is also going to roll out an on-demand, point-to-point service in larger vehicles, such as seven- or 13-seaters.

This is to cater to customers looking for lower fares.

The new affordable on-demand service with larger vehicles will start in 2019 instead.

A new pet service will also start in January.