Design Thinking Process:
Case Study Analysis - GrabFood
Figure 1 Functionalities of Grab (Duong, 2024)
What is GrabFood?
Nareen - Grab Food is one of the sub features of the application
called Grab which was founded by Anthony Tan in 2012 which was initially launched
in Malaysia but later had its headquarters moved to Singapore. Throughout the
years Grab has expanded to other Southeast Asia countries and became the top
used E-hailing app (Buckley, 2023). After the success, in order to emerge as a
super app, Grab decided to roll out food delivery services within the app and
will be later known as Grab Food in 2018 (Duong, 2024). Grab Food is a really useful
app where customers can enjoy their desired food without having to walk out of
their home.
Grab Food offers a variety of services from food delivery to
grocery shopping to customers’ doorstep. They also let customer choose whether
they want to pick up from the restaurant after ordering or have it delivered to
them which is really convenient. Not only that, but Grab Food is also wallet
friendly as it offers saver delivery, Malaysians collectively have saved around
RM27 million by using the saver delivery option. Even though the saver delivery
might take more time to deliver the food, it is still one of the budgets
friendly options for customers to enjoy (Wee, 2023). {209 words}
What makes GrabFood wow?
Luven - The wow factor of GrabFood lies on a key factor they provide to customers that set it apart from their competitors, making GrabFood the go-to online food delivery service for many. This factor is the convenience that GrabFood is able to provide from various aspects.
The aspects include the well-made user interface of the application, that allow customer to easily navigate and place orders from the variety of food choices. As customers proceed to the checkout, they are greeted with countless payment methods such as cash, cards, e-wallets and also Grab's proudly owned GrabPay, adding to the flexibility for customers (Balakrishnan, 2021). Based on a research conducted by Felicia (2022), many respondents shared the presence of e-wallets they regularly use tend to convince their decision to place the food delivery order. The main aspect lays in the checkout page as well which is the vouchers that GrabFood offers, that respondents have shared their major source of motivation to place an order in GrabFood are the promotions through vouchers, offering a cheaper price. The convenience of redeeming these limited time vouchers would induce enjoyment in people (Wei et al., 2023). This feeling of satisfaction would create repurchase interest, which will effectively drive customers to repeatedly place orders for food deliveries until it becomes their routine (Irwan & Albari, 2023). {210 words}
What works for GrabFood?
Naviin - GrabFood's success is underscored by its remarkable expansion, swiftly scaling operations to cover 204 cities across six countries within a mere two-year span. The rapid growth shows the company's aggressive strategy and ability to capitalize on emerging market opportunities (Goh, 2019).
With a keen eye on the under-penetrated Southeast Asian market, GrabFood recognizes food delivery as a priority sector for exponential growth. By tailoring its services to meet the specific needs and preferences of each local market, GrabFood adopts a hyper-localized approach, evident in initiatives like the durian offering in Malaysia and Singapore. Leveraging the robust infrastructure and extensive user base of the broader Grab ecosystem, GrabFood solidifies its position as a market leader, driving efficiency in operations and delivery services. Through strategic partnerships, exclusive deals, and innovative initiatives such as virtual kitchens, GrabFood fosters strong relationships with merchants while expanding its offerings and ensuring long-term sustainability (Goh, 2019).
So what works for GrabFood is its nimble expansion strategy, keen market insights, and collaborative ecosystem approach, which collectively propel its success in the competitive food delivery landscape. {202 words}
What if GrabFood lost their food delivery riders?
Sze Jay - On 19 January 2024, GrabFood riders has organized a campaign named "Grab Blackout" (Atarmizi, 2024). This is mainly due to Grab Malaysia implemented a revised delivery fee and bonus framework and claiming it to be fair for the riders. However, it resulted in a decrease fares for a certain longer rides and a significant drop of rate for shorter ride.
During this campaign, customer could not order food smoothly from the platform. Instead customer will choose other platform and alternatives to order their food. This causes a big lost for GrabFood and their customer base as their customer will choose their competitors such as Foodpanda or Lalamove to order their lunch or dinner (Atarmizi, 2024).
To solve this issue, Grab justified these changes by citing recent feedback from its delivery partners, who expressed concerns about longer wait times at merchants' outlet or pick-ups located farther away. The riders in the other hand uses slogan such as "stop bullying riders", "return to original fares" to issue their unsatisfied feelings towards the company itself (Atarmizi, 2024). {180 words}
What if GrabFood discontinued?
Chong - There would be serious consequences in many areas if GrabFood were to stop offering its services. First, customers who were used to the ease of GrabFood meal delivery would be inconvenienced and would have to look for other meal delivery services (Grab Singapore, 2021). Second, the discontinuance would affect delivery partners' means of subsistence, which would result in job losses and volatility in the gig economy (Lum, 2021). Thirdly, if customers switch to other platforms, rival food delivery services may see an increase in demand, which would change the overall structure of the business. Finally, it is possible that consumer behavior might change, leading to a return to conventional dining-in practices or an embrace of alternative food delivery choices, which may have an impact on consumers' purchase decisions (Zhang, 2020).
This hypothetical situation highlights GrabFood's prominent position in the meal delivery industry and its effects on stakeholders and customers alike. In the event that GrabFood were to shut down, the effects would go beyond simple convenience and would impact jobs, consumer behavior, and market dynamics. It is important for businesses to consider the potential ripple effects of their decisions on various stakeholders and to have contingency plans in place. Additionally, adapting to changing consumer preferences and market trends is crucial for long-term success in the food delivery industry (Grab Malaysia, 2019). {219 words}
References
Wei, C., Xuan, D., Ziru, C., Jingru, C., & Kushwah, V. S. (2023). GrabFood - The Impact of Electronic Coupons on Consumer’s Purchasing Power. Asian Pacific Journal of Management and Education, 6(3), 58–74. doi: 10.32535/apjme.v6i3.2666
Irawan, S., & Albari, A. (2023). The Effect of Promotions, Discounts and Service Quality In Repurchasing Interest In Grabfood Application. Devotion Journal of Community Service, 4(2), 515–524. doi: 10.36418/devotion.v4i2.404
Felicia, C. (2022, March 6). GRAB FOOD: A UX Research Case Study 2022. Medium. https://medium.com/@clarafelicia0911/grab-food-a-ux-research-case-study-2022-7d44ac8e7ff
Balakrishnan, R. (2021, April 21). How GrabFood is harnessing technology to overcome the challenge of food delivery in Southeast Asia. DealStreetAsia. https://www.dealstreetasia.com/partner-content/how-grabfood-is-overcoming-the-challenge-of-food-delivery-in-southeast-asia
Goh, J. (2019, July 26). Tech: GrabFood eyes a bigger bite of food delivery pie. The Edge Malaysia. https://theedgemalaysia.com/article/tech-grabfood-eyes-bigger-bite-food-delivery-pie
Buckley, J. (2023, February 27). A Brief History of Grab in Southeast Asia: transnationality, dominance and resistance. Asian Labour Review. https://labourreview.org/grab-in-southeast-asia/
Duong, V. (2024, May 11). Grab Case Study: How Grab Becomes A Super App? Grab Case Study. https://savvycomsoftware.com/case-study-grab/
Wee, J. (2023, September 29). Malaysian GrabFood users save over RM27m with its latest delivery option. Malay Mail. https://www.malaymail.com/news/life/2023/09/29/malaysian-grabfood-users-save-over-rm27m-with-its-latest-delivery-option/93526
Grab Singapore. (2021, August 15). Grab Brings its Fastest-Growing Service, GrabFood, into its Everyday Super App | Grab SG. Grab. https://www.grab.com/sg/press/tech-product/grab-brings-its-fastest-growing-service-grabfood-into-its-everyday-super-app/
Lum, K. K. (2021, May 27). Bags ready, but no one to deliver: rider exodus at GrabFood, foodpanda. The Ken. https://the-ken.com/story/bags-ready-but-no-one-to-deliver-rider-exodus-at-grabfood-foodpanda/
Zhang, J. (2020, April 27). Grab S’pore ending zero delivery fee plan but not all users know about it. Mothership.SG - News From Singapore, Asia and Around the World. https://mothership.sg/2020/04/grab-no-delivery-fee-cancelled/
Grab Malaysia. (2019, April 19). Food delivery & restaurant takeout - GrabFood Malaysia. Grab. https://www.grab.com/my/food/
Atarmizi, W. A. (2024, January 19). Grab Blackout campaign, what is happening? Sinar Daily.https://www.sinardaily.my/article/214934/focus/grab-blackout-campaign-what-is-happening
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