In view of Singapore’s return to Phase Two (Heightened Alert), Grab announced an internal round of support programmes for its merchant- and driver-partners. The planned budget for the current (and previous rounds) of Phase Two (HA) support programmes stands at more than $16 million.
As dining-in is prohibited for the entire Phase 2 (Heightened Alert) period, Grab’s support measures will aim to help F&B outlets (especially small businesses and hawkers) boost their online demand while driving costs down, as well as support their driver-partners.
Grab’s support package also comes on the back of the government’s $1.1 billion support package to help businesses and individuals tide through this uncertain period.
Supporting Grab’s F&B Merchants (Especially Hawkers and Small Businesses)
In response to Phase 2 (Heightened Alert) from 22 July to 18 August 2021, one of the schemes that were extended was the Food Delivery Booster Package by Enterprise Singapore (ESG). This will absorb 5 percentage points of commission costs for F&B players – and be disbursed by Grab. Going beyond this, Grab will support eligible hawkers by absorbing the remaining commission in full.
For eligible F&B businesses that use the GrabExpress services, the Food Delivery Booster package will fund 20% of the delivery cost per trip. Grab’s Phase 2 (Heightened Alert) package will absorb an additional 20% of the delivery costs.
Apart from lowering delivery costs on its platform (and GrabExpress service), Grab will also be encouraging its own users to order from its merchant-partners through upcoming promotional activities, one of which is its popular “Free Delivery” campaign. As part of the campaign benefits, participating merchant-partners are featured more prominently on the GrabFood homepage, increasing sales opportunities. According to Grab, small businesses that have taken part in previous “Free Delivery” campaigns have seen a 70% increase in GrabFood sales on average. To help more partners benefit from this campaign:
- Small businesses will receive credits to take part in this campaign or other relevant marketing campaigns.
- Grab will cover the cost of delivery in full for participating eligible hawkers and in part for all other participating merchant-partners.
- Participating hawkers will receive a dedicated banner on the GrabFood homepage so consumers can easily browse and support them.
- Grab will waive joining fees for all interested merchant-partners and automatically include eligible hawkers in this campaign.
Helping Non-F&B Merchants Scale Their Online Sales
Eligible non-F&B merchant-partners will receive a one-time cash reimbursement to defray 50% of GrabPay online processing fees over six months. Additionally, they will receive $15 GrabExpress delivery vouchers each month for the next six month – to lower their cost of sales.
Grab Drivers Will Also Be Supported
As transport rides are expected to drop during Phase 2 (Heightened Alert), the government enhanced the COVID-19 Driver Relief Fund (CDRF). This will provide eligible taxi drivers and private hire car drivers an additional payout of $10/vehicle/day from 22 July to 31 August 2021 and $5/vehicle/day in September 2021.
Grab’s package provides further support for their driver-partners. Grab will continue to enable their driver-partners to take on delivery jobs (e.g. via GrabFood, GrabExpress) to supplement their earnings.
Upon the completion of a minimum of 30 jobs each week across all services (transport and deliveries), drivers will unlock an incentive for every job completed. Based on demand trends from the last Phase Two (Heightened Alert), Grab projects that their driver-partners will still able to earn up to 80% of their usual earnings.
For eligible driver-partners who are renting their vehicles from GrabRentals, they will receive a rental rebate of up to $50 per week (depending on their current rental fees).
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