Grab reverses changes to rewards policy after customers express unhappiness
SINGAPORE - Four days after announcing changes to its rewards scheme which sparked an online furore, ride-hailing firm Grab has reversed a decision which made it harder for customers to secure points that gave them discounts on rides.
On Friday (July 20), the firm had revised its GrabRewards membership requirements as well as policy for earning points across Grab's three main services - rides, e-payments and food delivery.
Customers discovered they were earning fewer points per dollar spent. But points awarded per dollar spent shopping using e-payment GrabPay increased on a whole.
On Monday, a spokesman for Grab said the firm acknowledged that customers "would appreciate time to adjust to the changes".
"Effective July 24 at 8am, until Sept 30, GrabRewards members can claim ride reward points at the previous rates. Customers who have purchased Grab ride rewards based on the new rates will have the difference in points refunded," added the spokesman.
Customers say the rewards matter because 2,200 points could translate to a $5 discount on rides.
Grab rewards are tiered for different levels of membership with higher tiered members earning points at a faster rate. They start at Member, then progress to Silver, Gold and Platinum.
Before the change on Friday, Members earned eight points for every dollar spent on rides when they paid in cash, but after the change, it dropped to one point per dollar spent. The change on July 20 also meant Members using GrabPay for rides saw rewards dropping from 16 points per dollar spent to three points per dollar spent.
Mr Khairul Ansar, 33, a supply chain analyst, said when he realised he was getting fewer points, he decided to use the ComfortDelGro app.
"The prices are about the same, but I prefer to support ComfortDelGro now," he said.
Transport economist Walter Theseira said it is not unusual for customer rewards programmes to get devalued, pointing to the credit card and airline industries as examples. This is typically done to improve the bottom line of companies, he added.
The Singapore University of Social Sciences senior lecturer said unhappy commuters may not move to either taxi booking services or one of the newer private-hire car services. Ease of use still matters, he said.
"It may very well be the case that people complain, but they continue to use Grab," said Dr Theseira.
Separately, Grab is expected to submit a written representation on Thursday appealing against the Competition and Consumer Commission of Singapore's provisional decision which had proposed financial penalties, among other measures, after Grab's acquisition of Uber's business here.
The commission had described the deal as anti-competitive.
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