GrabBike offers promotion price as delivery service kicks off

The idea for GrabBike comes from the rapid growth of e-commerce in Thailand and the main purpose is to offer instant delivery service in the city utilising the company’s existing platform. The GrabTaxi application will match users with motorbike drivers, said Juthasree Kuvinichkul, director of GrabTaxi (Thailand). 

GrabBike offers the same service concept as GrabTaxi, pooling motorbike drivers who have a public driving licence with customers who want to deliver goods, parcel post, and even passengers. 

GrabTaxi users can use the GrabBike service in the same way as calling a taxi: Open the GrabTaxi app, go to a GrabBike session and make a request with the place of origin and the destination. Motorbike drivers have to bid to grab the request. Only one motorbike driver will get the job and the system then will send details of the driver to the users, including name, photo, vehicle licence number, and phone number. 

Users can do real-time tracking and share the route with the receiver at the destination. 

In case of damage or loss of goods or even in case of passenger injury caused by a GrabBike driver, the company will compensate in cash up to Bt2,000 per case.

GrabBike fees start at Bt35 for the first kilometre, Bt12 per kilometre from the second to the ninth, and Bt10 per kilometre from the 10th onwards. 

From now until the end of August, it is making a promotion offer with a flat price of Bt35 per delivery irrespective of the distance. Users have to put in the promo code “BIKEBETA” to avail of the promotion price. 

“We gain 15 per cent of the total cost of each GrabBike delivery,” Juthasree said. The company gains Bt5 per booking from the GrabTaxi service.

There are about 200,000 motorbike taxis in Bangkok. GrabBike did not disclose how many had signed up with the company.

Thailand is the fourth city where GrabBike is available, the other three being Hanoi, Ho Chi Minh City, and Jakarta. 

GrabBike is a sub-service within the GrabTaxi application. Currently, GrabTaxi service is available in six countries in Southeast Asia –Singapore, Malaysia, Indonesia, the Philippines, Vietnam and Thailand. GrabTaxi has seen 6.1 million downloads in the six countries, with 11 bookings every second and 111,000 drivers.

A similar service is offered by Hong Kong-based start-up Lalamove, which launched its service in Thailand late last year. Lalamove’s fleet in Bangkok comprises motorcycles, vans, multipurpose vehicles (MPVs, or minivans) and pickup trucks and will soon also include other types of delivery vehicles. 

GrabBike is the latest service of GrabTaxi (Thailand). The other services available in Thailand under the umbrella include GrabTaxi, GrabExpress, GrabCar, and GrabXL. 

GrabTaxi is a mobile app service available in Bangkok, Chiang Rai, Pattaya and Phuket. GrabExpress is a parcel-delivery service with bookings available on its website only. GrabExpress’ service areas include Bangkok, Nonthaburi, Pathum Thani and Samut Prakan. 

GrabCar is a licensed private-hire vehicle-booking service provided via the GrabTaxi app, while GrabXL is a van-booking service. 

“Currently, thousands of taxi drivers are members of GrabTaxi,” Juthasree said. 

“She added that there were around 100,000 registered taxis, of which about 80,000 were active. These all together have around 2 million times per day.

In the past 14 months, investment in the holding group of GrabTaxi amounted to about US$340 million (Bt12 billion), including series A, B, C, and D. 

The investors include SoftBank Corp, Tiger Global Management, Hillhouse Capital Management, Silicon Valley-based GGV Capital, Qunar, Vertex Venture Holding and other angel investors. 

Juthasree said the company would spend roughly Bt40 million per month for promotions, incentives, advertising, and marketing campaigns.