“Fair price” strategy

The ride-hailing market is increasingly vibrant, but also fiercely competitive. According to a report from Mordor Intelligence, this market is currently worth more than 723 million USD and is forecast to reach 1.17 billion USD this year. In the next 5 years, the total value of the industry will increase to 3.19 billion USD with a compound growth rate of 22.1% in the period 2024 - 2029.

Growth leverage comes from the fact that platforms are constantly improving and launching many new services and features to attract new users and retain current users. In addition, in the context of economic fluctuations, users still maintain thrifty spending habits, the technology car companies launching services with affordable fares, along with attractive incentives are important factors to maintain competitive advantage.

Typically, Grab announced the implementation of the "reasonable price" strategy in 2023. Up to now, the company continues to promote this strategy with many improvements in services and features, aiming to attract and retain users in a sustainable way.

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Grab continues to promote its "affordable price" strategy to help users spend more economically.

One of the prominent examples of this strategy is the GrabBike Economy and GrabCar Economy services. Officially launched in 2023, these two transportation services have fares up to 10% lower than the regular GrabBike and GrabCar services, and limited operating hours.

In 2024, the company has made improvements to make fares more attractive, specifically up to 20% lower than the fares of regular transportation services. Users can also use GrabBike Economy and GrabCar Economy services at any time of the day.

“Before, on rainy days, I was always worried that the fares for technology-based cars would increase. However, recently, with the GrabBike Economy and GrabCar Economy services, I feel much more secure because the prices are always stable,” Minh Huyen (26 years old, office worker) emphasized.

“My house is about 8-9km from the company. If I take GrabBike Economy, it can be 5,000 to 10,000 VND cheaper per trip, not including the discount code. It saves quite a bit of money over the whole month. It’s convenient, comfortable, and helps me control my spending better,” Minh Huyen added.

“Throw” incentives wisely

In addition to the service line with economical fares, this technology car company also strategically "launches" incentive programs. Instead of "racing" for promotional programs on special occasions, the application "uses" incentive programs to solve users' difficulties - fares increase during peak hours.

Specifically, during the two peak hours of 6am - 9am and 5pm - 8pm every day, Grab will automatically apply the promotion code to give users an additional discount of up to 20%. Users can easily see this promotion right when booking a car without having to do anything else.

Anh Thu (21 years old) shared: “As a final year student, I have to rush to finish my thesis and do an internship. Just thinking about the rush hour traffic and lining up to fill up with gas makes me tired. Instead of traveling by personal vehicle, I prioritize using GrabBike Economy, which is economical, fast, and convenient.”

In addition, "launching" promotions at the "right time" also encourages users to save time comparing prices between applications, while increasing the frequency of service bookings.

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Technology car companies "launch" incentive programs to solve price concerns when booking cars during peak hours

“All of these efforts are part of the Affordability strategy,” said Alejandro Osorio, CEO of Grab Vietnam, “because for students, every thousand dong is significant and is carefully considered.” Therefore, the affordable pricing strategy is an especially important factor in the context of the economy facing challenges, and users tend to spend more cautiously.

Bean Linh