Men in Black against the Greens
Grab is a ride-hailing company that began its journey as MyTeksi from Malaysia and whose headquarter was later shifted to Singapore. Uber is a global behemoth based out of the United States of America, which aggressively expanded to the rest of the world. The rivalry between the two in the South East Asian market is an exciting story to reckon with. Many consider Grab as SEA’s answer to the American juggernaut. In March 2018, Uber sold its South East Asia business to Grab in exchange for a 27.5% stake in Grab. Let's discuss how the modern-day David defeated the mighty Goliath-yet again.
- The Green approach vs the Black approach:
Uber’s approach: One size fits all
Grab’s approach: Going Hyperlocal
Because Uber was a company that was operational across different geographies across the planet, it primarily focused on ease of use for its International customer base. For example, you may book an Uber to New Delhi airport for your upcoming flight using the Uber app, and the same app can be used again for cab booking once you reach the New York airport. This is the operational magic Uber longed to create. But the same magic turned out to be a curse for Uber as with this approach; it could not tweak the app to make it suitable for local tastes.
Grab never had such constraints as its operations were limited to South East Asia. It could tailor its app as per the local requirements.
2. Cash is the king
Uber accepted Credit cards as the only mode of Payment in the Indonesian market for far too long than needed. In the Oriental economies, a credit card is possessed only by those sitting at the top of the pyramid. In this way, Uber limited its growth potential.
Grab realized and adapted as per the market pulse since its inception and allowed its customers to use Cash as a mode of Payment.
3. The two tyred trick:
One common theme across the South East Asian roads is its jam-packed roads. In order to address this concern, Grab came up with its motorcycle fleet. Passengers loved the idea as this new alternative was quicker, cheaper, and way more convenient on narrow Indonesian roads.
4. Sharing is caring
When Uber was grappling with safety concerns raised majorly by its female passengers, Grab was quick to react, and it launched its “Share my ride status” feature where with a simple click of the button, the real-time location of the ride and driver details can be shared with the loved ones. The community overwhelmingly welcomed this feature with open arms, and it helped Grab gain some extra miles against its competitor.
5. When it all falls down
There are two years which Uber would never be able to forget; 2009 and 2017. The former was the year when it was founded, while in the latter, it lost all the good name it had earned over the past decade. As per his poll promise, Donald Trump announced a ban on immigrants from certain countries, which was supported by Taxi Unions in the United States, and they refused a ride to these immigrants. Taxi Unions opposed uber for not joining hands.
Uber’s management was charged with sexual harassment accusations by its female employees. Its CEO Travis Kalanick’s tape was leaked where he could be seen arguing with a cab driver using cuss words. He ultimately had to step down for his behavior.
Uber’s loss was seen as Grab’s gain as it was perceived to be a friendly cab service in Indonesia against Uber.
Strategy Canvas:
Based on the discussion, let us analyze how Uber and Grab fare against each other across select parameters:
It can be seen that Uber has learned its lesson the hard way, when in Asia you simply can't do what the Romans do.
