CEREZO, JOSE ANGELO G.

May 11, 2021

OPMAN 120-J (Q4)

Grab PH in the Pandemic

Service Quality, Human Resources, and Maintenance Management

Launched in 2012 and introduced to the Philippines in 2013, Grab has been a breakthrough in
the transportation industry as an on-demand ride-hailing service; through the years, Grab has also
expanded its services through food and grocery delivery and e-commerce. However, into the pandemic,
shares of Grab’s ride-hailing services have declined significantly because of the government’s
restrictions on public transportation, along with the stay at and work from home measures and people
practicing social distancing. Despite this, Grab continues to strengthen and expand its services as
the use of GrabFood, GrabExpress, and GrabMart continues to increase. It has also internally
branded itself as a socially responsible company; Grab PH public affairs manager, Nicka Hosaka,
mentioned in an interview that “we offered our GrabCar driver-partners the opportunity to transition to GrabFood,
GrabMart, or GrabExpress delivery-partners… allowing them to keep earning during these unprecedented times.” Grab
is no stranger to those who had to adapt to the current circumstances; but with numerous operations
and high mobile e-commerce traffic, there are still a few gaps that the company can fill.

Table 1: Grab SWOT Analysis (Pandemic setting)

STRENGTHS WEAKNESSES

On quality On quality

Grab is convenient as all of its services (GrabCar,
GrabFood, etc.) are easily accessible in one
application.
- Aside from Grab’s user friendly interface, it
allows flexibility in payment options (cash or
GrabPay).
- Transparent as the estimated charge and a
summary of the driver’s details are made
available to the customer.
- Communication lines between rider and
customer are readily open to allow real-time
relaying of messages.
Ensures safety and sanitation standards for partners,
drivers, and customers
Into the pandemic, Grab Driver Centers around
NCR have set up disinfecting stations for vehicles,
motorcycles, and delivery bags. The company also
takes regular temperature checks on the drivers as
well as encourages contactless delivery (making
delivery arrangements on GrabChat or paying
through GrabPay) to minimize physical contact.
Uses data-driven solutions
Throughout Southeast Asia, data analysts and
regional account managers continue to move
Grab forward by harnessing digital
- Difficult for customers to book or order
during rush/peak hours
- Delivery charges/fare depend on the time
of day and user-to-delivery service demand
and supply
- For GrabFood, the application can
sometimes tap into a store that is far from
the customer’s delivery address to increase
delivery charge
- For GrabCar, drivers may charge higher by
tapping into a longer route
If a specific item is meant to be sent for someone
else, the delivery may be inaccurate and
prolonged without an exact pin
- Parties (sender, driver, receiver) may be
inconvenienced with back-and-forth communication
Although Grab trains its partners on its service
standards (i.e., technicalities and behavior), the
reflected attitudes of the drivers are out of the company’s
control
- The most the company can do is rely on the
driver ratings given by customers

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transformation and maximizing its omnichannel
approach to better address service gaps and
connect its users to delivery partners and
businesses. Specifically, the use of Tableau
dashboards provides Grab employees with data
such as GPS location, ratings, lead times,
frequent/common purchase categories, etc. that
drive the launch of more creative service solutions
to meet their users from where they are and
optimize their overall experience.

On human resources On human resources

Puts driver in control because working hours are While Grab makes it convenient for drivers to
flexible and they can choose to pick up riders report job issues or request for said benefits and
and/or orders according to their preference services, there is no guarantee on their reliability.

Grab cares about its driver partners

A. Employment
a. Offering GrabCar partners the
opportunity to work in the company’s
current high-demand services
(GrabFood, GrabExpress, etc.)
B. Assistance programs
a. Provides financial assistance to cover
necessary expenses of those who test
positive for COVID-19.
b. Loans, fuel, insurance (burial, calamity,
immediate assistance), education,
c. Educates their partners about food
hygiene as well as disseminating the
latest industry safety standards.
d. Collaborates with relevant institutions
in providing 24/7 contact tracing
support for its drivers and partners

On maintenance On maintenance

Grab PH’s website conveniently lists job issues that The application is prone to system glitches
drivers/delivery partners may encounter; this page
instructs them on what steps to take when faced
with situations such as cancelled orders,
no-shows, loss of contact (especially the recipient
for GrabFood/Express), damaged items, etc.

OPPORTUNITIES THREATS

Limited mobility due to the pandemic
- Excessive reliance on delivery and courier
services
- The multiplying effect of people’s behavior
towards online services and being habituated
to e-commerce
- The pandemic has slashed Grab’s
high-performing ride-hailing service
- Rising online logistics companies who may
price lower and have better service quality
- Traffic and/or scamming issues that cause
the cancellation of/no-show deliveries
- Rude customers

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 Even after the pandemic, commuters may remain
cautious of lining up in congested areas
(terminals, MRT lines, etc.); GrabCar may be one of
their safest options.

Challenges and strategies

One obvious bottleneck is the delivery/waiting time. While there may be circumstances out of
a driver’s control that lengthen or worsen the delivery process, they unfortunately still get the blame;
even worse, they are put under risk of customers cancelling an order too late or them not even showing
up. In August last year, GrabFood developed a better system to handle these cases; Grab secures its
drivers by having its system pay for the order to the restaurant instead of having the driver doing it first;
the latter will just collect the payment from the customer. This way, in the case of a scam, drivers will
not lose any money. Moreover, while restaurants and fast food establishments have long had designated
queues for GrabFood delivery drivers, Shell in Cebu has managed to create a separate, more
fast-moving lane so Grab delivery partners would not wait longer behind other cars. It would be
beneficial if this system was brought to Metro Manila as well to reduce any idle time given high
demand.

In reducing the communication gap in service delivery, below are some strategies Grab can
take to address delivery inconveniences regarding delay, protecting the driver from poor reviews
because of unintentional delays, as well as wasted efforts from cancelled/no-show orders:

Problem: When a user orders for someone else, the user is only given the receiver’s address and not
the exact pin. For some, this may result in complicated, lengthened, or even failed delivery (which is
risky especially for perishable items). Grab’s GPS is not the most accurate and the user would tend to
blame the delivery man even though it wasn’t their fault.
- Solution: Similar to Lalamove, it would be more convenient if the receiver has the option to be
connected in the process through a link to track the delivery in real-time as well. While it may
not be the best solution if the transaction was meant to be a gift/surprise, it would ultimately
reduce confusion and tension in the communication line (i.e., delivery man → sender; sender
→ receiver; sender → delivery man; delivery man → receiver).

Problem: Customers still get impatient even when the Philippines is no stranger to heavy traffic. With
delivery travel time as a bottleneck in the process, one reason why orders get cancelled is the time this
step takes.
- Solution: It would be helpful for both parties if Grab partners with Waze or strengthens its
mapping/in-app navigation function by providing also its users with alerts for traffic jams and
sudden road accidents. This becomes a more credible source of information (beyond the text
of a driver), and would better inform the user of why a delivery can take too long or if they
should still push through with an order (if they’re in a hurry).

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 References
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