Technology company Grab has announced that it will be putting an end to its popular “commute” and “all-access” subscription plans that provides ride and other discounts for a price, much to the disappointment of its users.
The company stated that these plans will cease in December, adding that it is now testing a set of different subscription plans with “select group” of users.
An article by TODAY reported that these new schemes look at providing different combinations of transport and food vouchers, and Grab is hoping that the plans will be out for all users by December 2019.
This is because it is part of the company’s initiatives to provide users with “more tailored” choices and to offer savings on a range of products and services, a spokesperson told TODAY. The new schemes will be designed after studying users’ consumption patterns on its platform and feedback.
Last Wednesday, Grab had sent out notices to subscribers informing them that their “commute” and “all-access” subscriptions will not be renewed after 16 December.
For those who are not aware, the “commute” plans provide user who pay a fee with ride-discount vouchers, whereas the “all-access” plans offer ride and food-delivery vouchers.
However, the firm noted that its “food” schemes which offer food-delivery vouchers will continue.
In an attempt to “create long-term value” for its subscribers, Grab introduced these subscriptions at the end of last year. The firm revealed that these plans have brought in hundreds of thousands of subscribers after it was launched.
Why are the plans being discontinued?
As to why these popular schemes are being discontinued, Grab said that it found out that more people are looking for “better engagement” on its app, adding that customers are frequently using it daily for transport, payments and food delivery.
“It is apparent from the feedback we have been receiving from our consumers that they are not only looking for a brand that provides good service, but also one that offers personalisation and innovation. With the shift in demand, we are looking to offer plans that are more tailored and that offer savings on a wider selection of products and services to our users,” the spokesperson revealed.
One example of this is the newly launched bubble-tea subscription service on 18 October.
The company noted that it would look at users’ feedback to evaluate if the new subscription plans meet their needs before deciding their next moves. However, the Singapore-based firm did not state the number of users involved in this feedback exercise.
Previously, Grab pointed out that it was focusing on benefitting its users over a longer period of time through subscriptions and GrabReward programme. It said this it is now looking to stray away from ad-hoc ride promotion, which was introduced in its initial years while it was looking to secure market share.
As to whether the company thinks that subscriptions were effective and if it would bring back ride promotions in addition to these latest plans, Grab noted that it is concentrating on creating long-term value for users “which mass promotion are unable to provide”.
“However, there will always be a role for targeted promotion, and this can include but (is) not limited to encouraging usage of different services or rewarding users for their keen support. We have received encouraging feedback from our users on our subscription plans and…are looking to enhance the plans to meet users’ changing expectations better,” Grab’s spokesperson said.