Week 9: Case Study Group: FEP-KLTSA Business Challenge

Week 9

Intro(Design Thinking)

What is GrabFood (Focuses on the current state or status of GrabFood)

    GrabFood is currently the leading online food delivery service in Southeast Asia, holding 54% of the region's gross merchandise value (GMV) in 2022. This leadership position has been maintained despite the overall slowdown in the online food delivery market following the COVID-19 pandemic. The pandemic initially drove record profits for food delivery companies, but as restrictions eased and people returned to workplaces, the demand for such services declined.

    GrabFood, along with other major players like Foodpanda and Gojek, has experienced modest growth since the pandemic. In 2022, the online food delivery industry in Southeast Asia saw a modest 5% growth, reaching US$16.3 billion. Grab has responded to changing market conditions by reducing its workforce, laying off about 11% of its staff, which affected its food delivery service and other app services.

    The competitive landscape includes strategic changes and partnerships. For instance, AirAsia, which initially entered the food delivery market with significant ambitions, has since shifted its focus back to its core travel and ride-hailing services. AirAsia partnered with Foodpanda to handle its food delivery services, directing its app users to Foodpanda's platform and vice versa.

    Additionally, the market has seen several companies struggling or exiting the food delivery business due to rising costs and decreased profitability. Smaller companies like Gobble in Singapore and HappyFresh in Malaysia ceased operations. Deliveroo and Foodpanda have also laid off portions of their staff.

    There is speculation about Grab potentially acquiring Foodpanda's operations in multiple Southeast Asian countries, which could solidify Grab's dominance in the region. Such an acquisition would likely lead to further consolidation in the market, potentially creating a near-monopoly situation for Grab in the food delivery sector. However, this would also raise concerns about employment security for current Foodpanda employees and the impact on existing business partnerships, such as the one between AirAsia and Foodpanda.

    Overall, GrabFood is positioned strongly in the market, leveraging its status as a leading superapp in Southeast Asia, with ambitions to further solidify its dominance through strategic acquisitions and expansions.

What if GrabFood (Explores potential changes, improvements, or future possibilities for GrabFood)

Based on GrabFood's current status, it is undeniable that it still has the potential to expand the business. There several approaches for GrabFood to scale its business:

Improving Customer Service

Another area for potential improvement is enhancing GrabFood's customer service. The search results indicate that 40% of customers feel the customer service needs improvement, while only 48% found it excellent (Kee et al., 2021). Monitoring customer service performance and addressing any issues could help GrabFood better meet customer expectations and satisfaction.

Expanding Merchant Partnerships

The search results highlight that GrabFood sees "huge potential in helping vendors...reap incremental benefits and enjoy an increase of orders". Continuing to expand its merchant partnerships, especially with local restaurants and hawkers not yet served by food delivery apps, could allow GrabFood to offer an even wider selection of cuisines and local delights to consumers.

Leveraging Technology for Efficiency

The search results suggest that GrabFood is already leveraging technology to streamline operations, such as using its Order Platform to combine internal systems and provide merchants with a 360-degree view of orders. Continuing to innovate and deploy technology to optimize the delivery process, such as the pre-ordering feature mentioned, could lead to further efficiency gains and cost savings that can be passed on to consumers.

Customizing the User Experience

The search results indicate that GrabFood tailors the in-app experience to local markets, using factors like user profiles, merchant popularity, and real-time order data to personalize recommendations. Expanding these localization efforts and continuously refining the recommendation engine could further enhance the user experience and drive customer satisfaction and loyalty.

    In summary, the search results point to several potential areas for GrabFood to explore, including expanding payment options, enhancing customer service, growing merchant partnerships, leveraging technology for efficiency, and customizing the user experience. By addressing these areas, GrabFood can continue to improve its offerings and solidify its position as a leading food delivery service in Southeast Asia.

What wow GrabFood (Unique features of GrabFood that makes it successful)        

    GrabFood — now available in eight countries, including Singapore, Malaysia, Indonesia, and many more. This amazing service has taken Southeast Asia by storm, making it easier than ever to get your favourite meals delivered right to your doorstep. Grab stated in 2018 that it had bought Uber's Southeast Asia operations and would be integrating Uber's food delivery service into its platform (Grab Singapore, 2021). There are many unique features that makes GrabFood successful:

Fast Delivery

One of GrabFood's main selling points is its speed. When you're hungry, waiting isn't an option. GrabFood's wide network of delivery drivers ensures that your food arrives promptly and in excellent condition. Cold dinners are no longer an issue because of their effective logistics.

User-Friendly Interface

Navigating the GrabFood app is quite simple. Its user-friendly interface makes it simple to explore menus, place orders, and track deliveries. With straightforward filters and search features, you can easily find your favourite recipes or discover new ones.

Real-Time Order Tracking

Are you curious about where your order is? GrabFood's real-time tracking function lets you track your delivery from the restaurant to your door. This transparency lowers uncertainty and keeps you aware of your meal's progress.

Many types of food selection

Whether sushi, pizza, or regional specialties are what you're craving, GrabFood has you covered. There are a wide variety of restaurants on the platform to suit every taste and inclination. With so many options available, you can always find what you're desiring.

Attractive Deals and Discounts

GrabFood routinely provides promotions and discounts, making it even more enticing. Whether it's a special deal at your favourite restaurant or a promo code for new users, there are always ways to save. Keeping an eye on these discounts might dramatically reduce your food bills.

GrabFood's combination of fast delivery, various meal options, and user-friendly features sets it apart in the congested food delivery market. With its outstanding range of services and ongoing innovation, it's easy to see why GrabFood is still popular in Southeast Asia today.

What works GrabFood (Effectiveness and success of current strategies and practices at GrabFood)

Conclusion (Abdulrahman) 

    In conclusion, grab has progressed significantly and made significant contributions to society during the past few years. Its remarkable leadership and planning have transformed society's behaviour. Grab Food is becoming more and more popular in Southeast Asia as a big number of people order food online these days. This article has explained the history of Grab Food, as well as any  potential changes, enhancements, or prospects. It has also highlighted the distinctive qualities of Grab Food that contribute to its success, as well as its present business tactics. With all of this in mind, we are able to relate to the significance of design thinking in helping businesses make wise decisions, overcome obstacles, and identify optimal growth paths.  

References

Kee, D. M. H., Al-anesi, M., Chandran, S., Elanggovan, H., Nagendran, B., & Mariappan, S. (2021). COVID-19 as a Double-edged Sword: The Perfect Opportunity for GrabFood to Optimize Its Performance. Journal of the Community Development in Asia, 4(1), 53–65. https://doi.org/10.32535/jcda.v4i1.998

Grab Singapore. (2021, August 15). Grab Merges with Uber in Southeast Asia | Grab SG. Grab. https://www.grab.com/sg/press/business/grab-merges-with-uber-in-southeast-asia/

Raj, A. (2023, September 26). Recipe for success: Grab to acquire foodpanda? Tech Wire Asia. https://techwireasia.com/2023/09/online-food-delivery-companies-in-asean-running-out-of-recipes-for-success/

Duong, V. (2024, May 11). Grab Case Study: How Grab Becomes A Super App? SavvyCom. https://savvycomsoftware.com/blog/case-study-grab/