business communication case study grab and now companies

Description of situationsAccording to the drivers, despite the difficulty caused by the COVID-19 epidemic, Now.vn still introduced many unreasonable and unclear policies, such as requiri

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATIONAL

PROGRAMS

***

BUSINESS COMMUNICATION CASE STUDY:

GRAB AND NOW COMPANIES.

Nghiem Trong Manh Nguyen Chi Bao Tran Dang Hien

Ha Noi 2023

Table of Contents

I Company background 2

1 Now Company 2

2 Grab Company 2

II Case 1: The ambiguity in policies and unresponsiveness from the company to employees 3

1 Description of situations

2 Reason for studying this situation

3 Reason for this situation

3.1 Upward/Downward Communication issue (chapter1)

3.2Lack of strategy for Dealing with conflict (chapter2)………

4 Consequences of this situation

5 Company’s resolution

6 Suggestion

III Case 2: Unpleasant noisy rides and Grab’s action

1 Description of situations

2 Reason for studying this situation

3 Reason for this situation: High and Low Context issue(chapter3)

4 Consequences of this situation

5 Company’s resolution

6 Suggestion

I Company background

1 Now

Now.vn is an online delivery service developed by Foody Starting as a service only for food and beverage delivery, Now.vn has now expanded to other categories such as fresh flowers, department stores, fresh food, cosmetics, etc., and packaging They also play the role of a connection platform between Foody users and the above service/product providers

Now, previously known as DeliveryNow, was developed by Foody in 2021 and is one of the early players in Vietnam's online food delivery market Foody developed a website that helps customers find and rate entertainment venues and restaurants in Vietnam It was later transformed into a food delivery app to keep up with market trends

As of present, Now is in fierce competition with heavyweight competitors like GrabFood, GoFood, and Beamin A survey by Q&Me shows that GrabFood and Now are the most popular delivery apps, with Baemin and GoFood following behind GrabFood and Now are still dominant in the market but Baemin has the best growth for now

2 Grab

Grab is the top super app in Southeast Asia, providing a wide range of services including transportation, enterprise, financial services, mobility, and deliveries They provide a vast array of services for customers, retailers, and businesses Grab delivers food, groceries, and other items, and serves as an express connecting everything to users' doorsteps Grab also offers financial services, such

as an online payment system for safe and convenient cashless transactions, Insurance, and Investment Services, etc Grab is one of the world's most innovative and rapidly expanding businesses

Vietnam is a tricky market for ride-hailing services, thanks to differing market rules between provinces and the fickle habits of urban users Since its arrival in Vietnam in 2014, Grab has outperformed rival platforms, owning three-quarters of the ride-hailing market, according to the most recent figures from advisory firm ABI Research in 2020 By 2019, Grab claimed that one in every four Vietnamese used the app daily It now runs a fleet of 200,000 “partner” drivers across its services, according to the Vietnam General Confederation of Labor

II Case 1: The ambiguity in policies and unresponsiveness from the company

to employees

1 Description of situations

According to the drivers, despite the difficulty caused by the COVID-19 epidemic, Now.vn still introduced many unreasonable and unclear policies, such as requiring drivers to achieve a minimum of 28 orders in 1 day to gain accumulated points

Many drivers said this is an impossible milestone to complete Therefore, they want to reconsider the current policy When it received backlash and criticism from the drivers, the company refused to listen and respond As a result, hundreds of NOW drivers go on strike, protesting against the policy of poor commissions around the headquarters

1 Reason for studying this situation

Now.vn is a popular platform, especially among young people In business, Now is rising as a potential service in the Vietnam market After the above special event, understanding the internal communication challenges and conflicts is crucial for the following reasons:

 Understanding Crisis Communication: To learn more about Now.vn crisis communication strategies with its many stakeholders

 Understanding Communication Conflicts: To understand possible

communication problems between various company stakeholders,

emphasizing drivers - who are essential to the firm operation

 Recognizing Origins and Consequences: To identify the causes and severe repercussions of communication problems and how they affect general corporate operations

1 Reason for this situation

This is caused by irresponsible and vague policies that Now.vn impose on their driver The policy states that the accumulated point feature is applied when 2 or more orders have the same delivery route or are nearby But they did not specify the term “nearby”, which confused the drivers After this misunderstanding, they decided to complain about this to the company However, not until the drivers went

on a strike did Nowfood resolve this problem

3.1 Upward/Downward Communication issue (chapter1)

The first reason for this problem is the lack of understanding between the stakeholders This reason is related to communication methods The term "nearby"

in this policy is controversial and causes conflicts The Now app measures distances with the term "as the crow flies." It does not reflect the actual routes taken by drivers or the actual distance This has led to a significant disparity between the distance displayed on the app and the actual travel distance for drivers The application of policies, such as the "nearby" distance criterion for the accumulated policy, is misleading as it does not align with the actual distances covered by drivers The difference can be substantial, potentially impacting drivers' ability to meet policy requirements

3.2 Lack of Strategy for Dealing with Conflict (chapter2)

The second reason for this situation is how Now handles conflicts or tactics is unreasonable They did not care about the problems or the feedback of policies when employees complained but only resolved it after the situation had escalated

to a climax: drivers went on strike in front of the company headquarters At that time Now should immediately consider some solution and reach a fair agreement

to end this one or at least pay attention to this situation so that this situation does not become worse than ever

Six Steps for Dealing With Conflict Theories should applied at that time In theory, the first step they should take is to listen to ensure they understand the problem But instead of doing that, they kept silent The model should have been applied immediately to resolve the issue and finally reach a fair agreement

1 Consequences of this situation

The consequences of Now's situation are numerous and severe The employee strike, leading to chaos outside the main headquarters, reveals the profound dissatisfaction among drivers This disruption not only interrupts regular

operations but also redirects resources towards resolving the strike, causing delays

in activities Moreover, the shift of drivers to competitors such as Grabfood, Gofood, and Baemin threatens the quality of service and Now's market share The erosion of market share to rival corporations emphasizes the urgency, for Now, to promptly address the drivers' concerns Additionally, amid the ongoing COVID-19 pandemic, large gatherings associated with protests pose health risks, potentially resulting in legal consequences for the company To rectify these issues, Now must engage in transparent communication with its drivers, revisiting and amending policies to align with their practical challenges This approach is crucial not only for immediate issue resolution but also for safeguarding the company's long-term stability and market position

1 Company resolution

Amidst the recent driver protests at Now.vn headquarters in Hanoi, the company has issued a comprehensive response to address the concerns of the driver community The online food delivery platform acknowledges the disruptions caused by new policies and conveys its stance to the driver community and the media Now.vn asserts that the new policies aim to enhance competitiveness in the market and improve service quality for users

According to Now.vn's statement, the adjustment in the reward structure is part of

an ongoing process to align business operations and maintain overall financial stability Now.vn asserts that modifying rewards is not only a strategy to stay competitive but also a means to motivate drivers, recognizing their efforts more fairly

Now.vn acknowledges the discontent among a portion of its driver community and underscores its commitment to finding a solution The company also has

dispatched representatives to engage with dissatisfied drivers, aiming to facilitate a dialogue to better understand the core issues behind the policy change

Furthermore, Now.vn underscores that the new reward policies aim to provide a more stable income for drivers who have demonstrated long-term commitment and high operational productivity However, the company acknowledges the inevitable impact on drivers who operate infrequently or selectively choose orders based on proximity

Now.vn expresses its dedication to addressing the concerns raised by drivers, engaging in open communication, and working towards a balanced policy framework The company emphasizes the dual goal of maintaining market competitiveness while ensuring fair and motivating conditions for its diverse driver community

1 Suggestion

Now made a mistake by not addressing the issue promptly when it was still minor When the problem was just complaints from workers, they showed indifference and remained silent It was only when the situation escalated to a peak that they spoke up When entangled in a conflict, Now.vn should apply the Six Steps for Dealing With Conflict theories:

 Step 1: Listen to ensure they understand the problem

 Step 2: Understand the driver’s position

 Step 3: Show a concern for the relationship

 Step 4:

II Case 2: Noisy Rides

1 Descriptions

Many GrabTaxi users and other taxi commuters have been annoyed by talkative and too-open taxi drivers They reported having to listen to the loud music, the driver gossiping unwillingly, and the vulgar questions They answered those questions so they were not considered impolite, but those drivers kept talking Some commuters had to fake having a phone call to stop the

"investigative" conversation Those ride-hailing users felt unhappy and annoyed Some even considered it a mild haunting experience, according to psychologists

2 Reason to choose this situation

In this case study, taxi drivers are considered responsible communicators who care about the customer's feelings The possibility that they are merely vulgar

is not concerned

There was a communication barrier between the drivers and the customers The drivers did not receive the actual message from the customers by verbal communication Usually, this situation, in particular, and others, in general, can only happen between high and low-context cultures However, in this situation, the involvers are all Vietnamese, living in a high-context culture By way of explanation, they are in the same context Therefore, this study aims to understand the reason behind this strange situation through theoretical analysis The result might be used as a reference for other similar situations

3 High & Low Context Cultures (Chapter 3)

According to cultural anthropologist Edward T Hall, context refers to the stimuli, environment, or ambiance surrounding an event Low-context culture refers to a culture that communicates explicitly It relies on the straightforward use

of language, without depending much on nonverbal cues Examples of low-context

cultures include the United States, Australia, and many Western countries High-context cultures are those that communicate in ways that are implicit and rely heavily on context High-context cultures are collectivist, value interpersonal relationships, and have members that form stable, close relationships The following are differences comparing Low and High-Context Cultures:

Tend to prefer direct verbal interaction Tend to prefer indirect verbal interaction Tend to understand meaning at one level

only

Tend to understand meanings embedded

at many sociocultural levels Are generally less proficient in reading

nonverbal cues

Are generally more proficient in reading nonverbal cues

Value individualism Value group membership

Rely more on logic Rely more on context and feeling Say no directly Talk around the point, avoid saying no Communicate in highly structured, detailed

messages with literal meanings

Communicate in sometimes simple, sometimes ambiguous messages Give authority to written information Understand visual messages readily

In this situation, all the involvers are Vietnamese, living in a high-context culture Therefore, the communication cues are transmitted by posture, voice inflection, gestures, and facial expression They are proficient in reading nonverbal cues and avoid saying no By way of explanation, they depend heavily on nonverbal communication

However, in a ride, the involvers do not communicate face to face The taxi drivers can not see the customer's posture, gestures, facial expressions, and body language Their proficiency in reading nonverbal cues is now useless The only way the customers can show their unwillingness to have a conversation is through spoken language However, as the customers avoid saying no and answer the question from the curious taxi driver to maintain politeness, their words do not show that they feel annoyed and unpleasant Moreover, answering questions can be a nonverbal cue to the taxi drivers that the customers are willing to share information and listen to the drivers That is why this situation happened

4 Grab Technological Solution & Its Controversy

As a result, GrabTaxi released a feature called "Silent Ride" on June 27,

2023, in which the driver will keep an acceptable volume of music or radio They

will also remain silent during the ride and only speak to confirm the users about related information, including the destination and the cost of the ride

This is considered an efficient technical solution for quality improvement to please privacy-prioritized customers It’s not a new feature and has been applied in Japan, America, Australia, and England Most of Grab's users appreciate and agree with this feature On the other hand, although introverted drivers support this feature and consider it a burden being relieved, others are saddened that the long drives will be full of boredom

Communication is indeed a reasonable need as it helps people connect with each other However, all communication and information exchange must be based

on mutual want and respect

5 An In-Progress Solution

This is a communication problem, so either there is no more communication,

or there must be a way to improve the communication skills of drivers

On 20/7/2021, the Directorate of Vocational Education Training, accompanied by Grab, officially signed the MoU regarding collaborative deployment on initiatives for skills improvement of Grab drivers Both parties aim

to develop paid training courses, including driving skills, CPR, personal finance management, self-learning, problem-solving, and communication skills