Grab Food lowers delivery fees as competition stiffens

KUALA LUMPUR, 14 Oct 2021:

With online orders already seeing a slump with the end of Covid-19 movement restrictions as of Monday Oct 10, delivery firms are starting to respond to the shrinking economic pie.

After AirAsia dived into this sector, which had been booming during movement restrictions, the shrinking economic pie and stiffer competition is seeing some fee reductions and creative marketing taking place.

Among the first to respond is Grab, which has announced lower fees – stating this effort aims to make “it easier for consumers to discover restaurants within a 3km-radius by grouping them under the ‘Near Me’ tile and lowering the delivery fees for these restaurants to as low as RM1”.

In a statement, Grab said this initiative “makes it even easier for consumers to support their neighbourhood restaurants” and assured that to compensate for the low delivery fees, Grab will be subsidising the delivery fees – ensuring delivery-partners’ income are not affected.

Meanwhile, Grab is also promoting its ‘Premium Delivery’ to ensure order arrival time is guaranteed. “Consumers who opted for ‘Premium Delivery’ will be compensated with GrabFood vouchers accordingly if their orders do not arrive by the stipulated time range as indicated on the Grab app.”

The proviso is that ‘Premium Delivery’ does not include self pick-up orders, cash orders, business orders, and orders fulfilled by the restaurant’s own delivery fleet.