Grab wants a share of the carpooling biz

It took a while after a similar transportation network company (namely Uber) did it, but Southeast Asia-based ride-hailing platform Grab finally unveiled its own carpooling service in the Philippines – coinciding with its release in Malaysia.

Dubbed GrabShare, the “on-demand carpooling service” offers 30 percent cheaper fares compared to the standard GrabCar or sedan product. Previously solely offered in Singapore (beginning in December of 2016), GrabShare distinguishes itself by guaranteeing a maximum of one additional stop – promising speed and convenience along with affordability.

In a release, Grab Philippines maintains that with GrabShare, “passenger demand for rides can be met more efficiently with the existing car supply, helping to reduce the number of cars on the road. In exchange for sharing their ride, passengers enjoy cheaper fares, (while) drivers earn more by completing two bookings in one trip.” For drivers, this means increased revenue per kilometer and reduced fuel consumption.

Grab Philippines head Brian Cu, speaking with STAR Motoring, says that the company observed the rollout of GrabShare in Singapore and “let the product settle in first and learn from that release.” Prior to the commencement of GrabShare locally, they “made sure that drivers were well trained on the interface and app (both refreshed) for a pleasant experience for them and their passengers.”

Cu avers that Grab focuses more keenly on its “partners” or drivers via incentives and commissions. “I myself meet with drivers,” he says. “Our app and policies are more driver-centric.” In the case of the local rollout of GrabShare, the local office had to meet with partners over the course of six to eight weeks to arrive at mutually acceptable rates.

“We have two end users: the driver and the passenger. It’s not just always about the passenger. We need to take care of our partners, or else they will leave the system,” declares Cu. Meanwhile, GrabShare is distinctly envisioned as a more convenient way to carpool. “The benefit to the passenger is the sharing policy that you can only share with one other person. Imagine, if you can share with three other people, you have to wait before you can be on your way.”

The reasoning is simple: “If this was a country (without) traffic, and the roads are very well organized, it would be okay to share a ride. But it’s not the case. We have to localize the product and limit passengers – even if it means a loss of opportunity and income,” explains Cu.

Since its debut in Singapore, two million GrabShare rides have been completed over a total distance of some 20 million kilometers. “Along with the rapid passenger adoption of GrabShare, Grab has seen a 15-percent improvement in its passenger matching rate. With more passenger bookings completed, drivers’ monthly incomes have also increased 10 percent on average. The dramatic success of GrabShare in Singapore has inspired Grab’s confidence in offering its commercial carpooling service to more countries,” reports Grab Philippines.

For more information, visit www.grab.com/ph/share.