Grab customer experience savaged as report identifies ‘stunning pace’ of fall from ‘local hero’ status
Research firm Forrester has delivered a withering critique of Grab’s controversial Singapore deal with Uber and warned other digital monopolies to learn from the failings of the ride hailing firm.
Grab has already fallen foul of the competition regulator after it, and Uber, were each fined S$6.5m following an investigation into the transaction.
The probe by the Competition and Consumer Commission Singapore concluded that the sale of Uber’s South East Asia business to Grab in exchange for a 27.5% stake in its rival adversely effected consumers and drivers.
While the CCCS hit Grab in the pocket, the Forrester analysis on the importance of the customer experience was a more savage assessment.
The report said that as promotions were reduced, and fares increased in the aftermath of the Uber deal – which has been denied by Grab – the perception of Grab “started to shift from that of a scrappy local startup focused on customers to a dominant market leader focused on the bottom line”.
Critically, Grab failed to understand the “powerlessness” felt by customers and drivers, who felt “suppressed and forgotten”, Forrester said.
“Grab triggered an explosive emotional reaction that undermined its market position and spread like a virus,” the report said. “Human beings are analogue and still driven by emotions. Understanding customers emotional triggers allows digital businesses to boost success and sidestep dangerous pitfalls.”
Brands should also take heed of Grab’s timing when it allowed a price change to “go through” soon after the merger, while alterations to its rewards programme were introduced “almost overnight”.
While “unpleasant messages” are sometimes unavoidable, brands can control how and when they are delivered to customers, Forrester said.
Grab, it found, “unnecessarily stoked customer complaints”, alienated loyal customers and “caused considerable damage”.
“Backing off of or temporarily reversing those changes would have earned customers’ goodwill,” it said.
The authors of the report, Tom Mouhsian and Dane Anderson, stressed that “good intentions and reassuring words” must be backed up by actions. They described Grab CEO Anthony Tan as a “young, inspirational Malaysian leader” who has demonstrated a “genuine desire that customers come first”.
“However, Grab’s CX performance since the Uber merger showed that even the best intentions are not enough,” the report said. “Sustainable success requires a comprehensive operational reboot and strong CX management.”
Forrester, which interviewed drivers and customers for the report, said firms must build a “customer-obsessed” operating model and earn the trust of the public.
It added that diversifying into other business areas, such as Grab with GrabPay and GrabFood, was “not a right, but a privilege requiring customer permission built with strong CX, delivered consistently over time.”
“Customer trust is precarious and earned daily,” it said. “Organisations earn it or burn out.”
In its conclusion, Mouhsian and Anderson, said Grab’s experience “showcases the importance of customer experiences to all companies, including high-flying digital disruptors”.
“The stunning pace with which Grab fell from its unquestioned position as a local digital hero should remind all eBusiness leaders that their customers are in charge,” it said.
“Organizations must learn to reliably and consistently deliver the right CX at the right time.”
Strategic foundations that ignore the importance of a customer-obsessed model that delivers strong CX “will eventually collapse,” the report said.
“If Grab doesn’t adjust course and execute, it will learn the power of customer obsession and CX the hard way.”
Responding to the criticism, the head of Grab Singapore Lim Kell told Mumbrella: “We acknowledge there’s a lot more we can do and we are making every effort to improve our services and customer experience. We will work harder to rebuild our relationship with users in South East Asia.”.
We wish Grab an instance [Edited under Mumbrella’s community guidelines] Causey it’s attitude hv been lost in its authority n money they might hv the people to activate n diactivate the apps but they would be a burden if they cannot find the right people I can putting their plans on their field operations with who the management as graceful declared war against their own field operators so Grab we wish early Exit to [Edited under Mumbrella’s community guidelines]
ReplyRarely a week goes past without being in a conversation about how poor Grab’s customer service is these days.
I’ve gone from loyal user for years to using it at last resort.
The arrogance around the food delivery also blew my mind.
I tried the food delivery as a trial. Order was extremely late but more importantly, it was impossible to talk to someone about it. I jumped on Facebook chat and they recommended I send an email.
At 10pm when I’ve been waiting almost 2 hours for food they recommend I send an email. It’s insulting how they treat customers.
ReplyThis is what happens when a) your marketing/PR people have little experience in those fields; and b) you don’t like to work with agencies because they are “too slow.” Taking a little more time to figure out how to communicate to customers, drivers, and employees might have blunted some of the negative reaction and coverage.
ReplyAnd yet their head of marketing was recently named as one of Asia’s top 25 innovators by a PR trade website.
Maybe its definition of PR is different from the general public.
ReplyPrice strategy at Grab is crazy: $39+ERP from CBD to Serangoon Garden. For the same price a taxi takes you both ways to Changi.
ReplySecond, drivers cancel on you, usually 1mn before pick up sometimes up to 3 times within the same booking. Riders get fined $5 after 2nd cancellation in a WEEK, drivers get nothing for cancelling repeatedly while they jeopardize your meetings scheduling. Grab has lost it completely, prefer TADA (top notch) or SIX (not enough drivers but very good service)
I’ve literally earned 10s of thousands of points hiring Grab trips, WHILE Uber existed. I’d rarely used the latter, for some reason I preferred to support a local startup. But the sheer hurry and ruthlessness with which the company re-positioned itself after turning a monopoly is one of the most disgusting customer experiences I’ve ever had. Aggressive rules on everything from hiring to cancellation, irresponsible support for payment issues, rate hikes – everything. This company will face the heat the day GoJek or a new competitor hits the SG market. Like overnight.
ReplyCan’t wait for GO-JEK to launch and I know I’m not the only one.
ReplyGrab needs to start listening to its customers. Greed will only damage its reputation further without doubt. Everyone is just waiting the next white knight to come in and steal the limelight from Grab. CX is relevant to your brand and your growth. Spare some thought or consumers will ‘grab’ your shine from you.
ReplyChickens came home to roost for Grab, and about time. Terrible treatment of their customers and partners has been their undoing.
ReplyPick a date and day.. give enough notice, push it on FB, push it on social channels, company emails.. and for one day don’t use Grab, #grabblackout
ReplyLots of bad press in Vietnam, mainly as the need for growth (mainly motorbike taxi drivers) seems to have outweighed the need for background checks, customer safety and customer service training. Becoming a monopoly after UBER left didnt help, but we now have Soviet (Go Viet) to battle their potential price gouging.
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