Ride-hailing giant Grab has partnered US start-up Cargo to bring Grab&Go to Singapore, which marks the latter’s first international expansion.
This new service opens up a whole new experience for Grab commuters as passengers are now able to choose from a mix of free samples and premium retail products when riding in Grab&Go-equipped vehicles.
So far, Grab&Go has partnered with brands such as Kellogg’s, Biore UV, Novu and Unilever’s Lux Luminique to distribute complimentary products to Grab passengers.
These free items include Nutty Chocolate cereal bars, Biore UV Anti-Pollution Body Care Serum APF 50+ PA+++, Novu Bloomin’ Good mask for skin regeneration, and the new Lux Luminique Botanical haircare range.
Passengers are limited to take home up to four complimentary products, and there may be individual item limits on some of the complimentary items as well.
Win-Win For All
For the brands, Grab&Go is an opportunity for them to reach more users by making their products more readily available to Grab passengers, who can easily order the products through Grab&Go’s digital menu on their smartphone.
Once they have selected their desired items, they simply have to key in a unique five-digit code to ensure that payment goes to the right driver. The additional cost is then added to the passenger’s final Grab fare.
While this in-car retail experience is definitely convenient for consumers, it also stands to benefit the Grab drivers as well.
This new service serves as an additional source of revenue for them – Grab drivers earn money each time a passenger uses Grab&Go, regardless of whether they made a purchase or took something for free.
For each paid sale, drivers get to earn a 20% commission fee. They also earn a S$1 check-out bonus for every order from their Grab&Go box.
For instance, if a passenger orders a S$10 item and it includes two free samples, the driver earns S$3 (20% commission on S$10 item + S$1 transaction bonus).
Ultimately, this service allows Grab drivers to earn an additional S$75 to S$250 each month, and also helps to improve their driver ratings.
Other SEA Markets Can Expect Grab&Go Too
Cargo has successfully been introduced to key US rideshare markets, such as New York, Boston, Chicago, Minneapolis, Washington DC, Baltimore, Atlanta, and Dallas.
According to Cargo founder Jeff Cripe, Cargo’s business model is already validated in the US, and he’s now working hard with Grab to create a viable international expansion model.
When asked why he chooses to launch Grab&Go in Singapore, he said, “It was less about choosing Singapore and more about choosing Grab – who is headquartered in Singapore – to be our partner.”
“In Grab, we found a partner that both shared our vision for the role of in-car commerce in the future of the rideshare economy and we embraced working with a startup that deploys its resources efficiently, which is how we developed Cargo’s co-branded licensing model, a major (and leaner) departure from how Cargo operates in the US.”
“Through co-branded licensing deals with global rideshare leaders like Grab, we will help drivers earn more, create a new distribution channel for brands, and develop the next-generation of passenger experience worldwide,” he added.
To date, Cargo has raised S$8.5 million in venture funding to fund its business expansion, and the startup aims to reach over 25 million passengers across 20,000 vehicles this year.
Following Grab&Go’s launch in Singapore, the two companies plan to expand this offering in other Southeast Asian markets.
“At Grab, we are always thinking about ways to better serve our customers. We’re excited to partner with Cargo to deliver more value to our passengers, while increasing the number of income streams available to our driver-partners,” said Nash Islam, Head of Regional Advertising of Grab.
“It’s a win-win for both drivers and passengers, and we are looking forward to bringing this experience to all our customers in Southeast Asia.”
Featured Image Credit: Grab