New Grab service allows customers to get samples, buy products on their rides

SINGAPORE — Fancy indulging in some retail therapy or grabbing some free snacks or beauty product samples while taking a ride? Commuters can now do that on their Grab rides, following the introduction of a new Grab&Go service on “hundreds” of its vehicles on Monday (June 4).

The Singapore-based ride-hailing giant said its partnership with American tech company Cargo is aimed at giving its drivers a chance to earn more passive income, while creating a better in-car experience for passengers.

For now, passengers can select from a range of paid or complimentary products. Free products include items such as cereal bars, sunscreen or hair serum, while other products like Pocky biscuit sticks are chargeable.

There is a limit of four free samples per passenger, and no limit on paid products that one can request for. Drivers’ boxes will be kept in stock via a “smart” inventory system.

To use the service, passengers can browse Grab&Go’s digital menu — www.grabgo.sg — on their smartphones during their ride, make their order, and receive the items from the driver at the end of their trip.

To request for their choice of free samples or make a purchase, passengers have to enter a unique five-digit code displayed on the product box, located above the car’s centre console, on the digital menu on their smartphones. This ensures that the price of the paid items is charged to the passenger’s final fare, and payment goes to the right driver.

Grab’s head of regional advertising Nash Islam called the service a “win-win” for both drivers and passengers, though the company declined to say exactly how many Grab Car vehicles have been equipped with the new service, merely saying that “hundreds” have been installed.

Cargo, which has debuted successfully in key US ride-sharing markets such as New York, Boston and Washington, estimates that the new service will allow Grab drivers here to earn an additional S$75 to S$250 each month.

Drivers are paid to carry both the free samples and chargeable products, though Grab declined to reveal details of how they are paid.

In the US, Cargo partnered ride-hailing apps Uber and Lyft to install similar display boxes carrying products which include protein bars, sweets and even hangover cure tablets in their cars.

To date, Cargo has raised US$8.5 million (S$11.37 million) in venture funding to scale up its operations more rapidly across the US and international markets. The start-up said it will reach more than 25 million passengers across 20,000 vehicles this year.

“As we grew, validated Cargo's model in the US, and raised additional capital, we worked hard with Grab to create a viable international expansion model,” says Cargo founder Jeff Cripe.

Following its launch in Singapore, the two companies plan to expand the Grab&Go offering to other South-east Asian markets.

Responding to queries from TODAY, Mr Cripe said the product boxes are designed such that the latch is only accessible from the driver’s seat to prevent theft.

While drivers do not decide on the products to carry, he added that every driver’s inventory differs “depending on what passengers are ordering”. Every driver will carry “two to four weeks’ worth of products” at any time, with their boxes’ contents changing based on passenger ordering patterns and available inventory.

Drivers will be automatically notified when it is time to pick up their tailored replenishments at the Grab driver hub located in Bishan, as their boxes’ inventory is managed — in real time — by Cargo’s proprietary inventory management system.

TODAY has reached out to the Land Transport Authority on whether there are any regulations against private hire vehicles offering such a service. A Grab spokesperson told TODAY the firm has “informed and clarified the regulatory requirements with relevant authorities” in Singapore.

Drivers and passengers interviewed by TODAY in the meantime do not seem too excited at the new service offering.

Part-time Grab driver Wong Chin Woon said he is not keen to take on the service, even if it offers extra income as it is a “hassle for the driver”. The 46-year-old said: “The transaction will take up extra time, and it can be difficult especially if I have to drop off the passenger at places where I cannot stop for too long, for example places with high traffic.”

Agreeing that it's "troublesome", another Grab driver, who wanted to be known only as Mr Sofian said: “Even though Grab will pay us for our efforts by carrying the products, the amount is not worth the effort as we still need to go to the warehouse to stock up them weekly.”

Potential customers like a 23-year-old National University of Singapore student who wanted to be known as only Ms Kintan felt the service is "unnecessary" as there are other sources for food and product samples.