Grab is testing subscription-based model

Pilot programme to launch within the next two weeks

Recently, I noticed a new feature in the Grab mobile app – GrabClub. Intrigued, I contacted Grab for more information. So, here’s what I found out: it’s a monthly subscription plan that Grab is testing out. A pilot programme is set to roll out within the next two weeks.

[UPDATE] Added pricing plan sample from GrabClub Singapore pilot programme.

Grab said GrabClub is part of its “Better Everyday” commitment to improve customer experience and to bring more value to its users.

It’s the first time the company is introducing a subscription-based model. It’s designed to give users more savings on rides as well as food orders.

Grab’s move is similar to what US-based ride-hailing service Lyft recently introduced in October. Lyft’s new subscription service costs USD299 a month, with the All Access Plan offerings 30 private and shared rides of up to USD15. If a ride exceeds USD15, customers will pay the difference.

Lyft All-Access Plan
Lyft

A flat-fee, subscription plan is great for frequent riders. The USD15 credit for 30 Lyft rides is worth USD450, a substantial amount of savings under the USD299 All-Access Plan. Subscribers can cancel at anytime.

Grab could do something similar, offering a MYR300 monthly plan that covers a set amount of rides of a certain capped value. Additionally, it could offer preset credit for GrabFood as well as GrabReward points.

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GrabClubIn my opinion, it’s a win-win for Grab, driver partners and riders. For one, it helps Grab lock-in customers over long term and gain loyal customers – a move that complements its GrabRewards programme and its goals of making the Grab app an “Everyday Superapp.” It also adds more predictability to its current business model.

For frequent riders, it means more assured savings as opposed to waiting for ad hoc promo codes and utilising GrabReward points for discounted rides.

There are no details regarding pricing in Malaysia yet but Grab said the GrabClub subscription model will start with a single package first. The pilot programme that will kick off in two weeks will help the company gather data, feedback and learnings to improve and enhance its packages.

[UPDATE] Added pricing plan sample from GrabClub Singapore pilot programme

GrabClubGrab Singapore has started piloting GrabClub, offering three different passes:

  • GrabClub Food Pass – SGD7.99 (MYR24) per month with 30 free delivery vouchers, including SGD5 and SGD10 GrabFood discount vouchers every month*
  • GrabClub All-Access Pass Basic – SGD11.99 (MYR36) per month
  • GrabClub All-Access Premium Pass – SGD19.99 (MYR61) per month

The All-Access Pass options offer a combination of ride and food discounts, with potential savings of up to 40 percent on Grab services.

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*Must sign up between 1 December 2018 and 31 January 2019

If you don’t see the GrabClub option in your Grab app, it’s because it’s rolling out to select riders (I presume frequent riders and Platinum level members).

Stay tuned for more updates.

Source: Grab

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