research proposal business communication case study grab company ltd

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATIONAL PROGRAMS

RESEARCH PROPOSAL

BUSINESS COMMUNICATION CASE STUDY: GRAB COMPANY LTD Class: Advanced International Business 64B

Lecturer: Mrs Le Thuy Linh Group 10: Nguyen Viet Anh 11220508

Nguyen Viet Ha 11221958 Nguyen Ha Vy 11226980 Vu Viet Tung 11226782

HANOI, 2024

Abstract

This report presents an analysis of two business communication issues related to Grab, a transportation and digital payments company operating in Vietnam The first issue concerns a protest by Grab drivers in January 2018, who demanded clear guidelines on how taxes are calculated and a reduction in the commission rate to 15% as it was before August 2017 The report examines the communication breakdown between Grab and its drivers, emphasizing the importance of clear communication, transparency, and fair treatment of drivers to maintain a positive relationship and avoid conflicts The second issue focuses on the implementation of GrabPay by Moca, a new digital wallet service by Grab, which caused inconvenience and frustration for some users during the transition from the old GrabPay Credits system The report analyzes the implementation process and user experience of the new digital service, highlighting the mmportance of smooth implementation and user-friendly features to ensure customer satisfaction and trust

To address these issues, the report recommends that Grab prioritize clear communication and transparency in its relationships with drivers and customers Specifically, the company should provide clear guidelines on tax calculations and commission rates, and engage in open and transparent dialogue with drivers to address their concerns Additionally, Grab should ensure smooth implementation and user-friendly features in its digital services to enhance customer satisfaction and trust

In conclusion, this report emphasizes the importance of effective communication, transparency, and user-centered design in business operations and customer relations By addressing these issues, Grab can improve its relationships with drivers and customers, enhance its reputation, and ensure long-term success in the Vietnamese market

Company Background

Grab Holdings Inc which began as MyTeksi in Malaysia in 2012 by Anthony Tan and Tan Hooi Ling - former Havard’s students Grab has evolved significantly since entering the Vietnamese market in 2014 Renamed to Grab in 2016 to better reflect its widening scope, the company now represents one of the leading technology entities in Southeast Asia, particularly prominent in Vietnam This expansion includes a broad array of services: online transportation by Grab Bike and Grab Car; ride-hailing, food delivery through GrabFood; package delivery via GrabExpress; financial solutions with GrabPay; and grocery delivery through GrabMarket This diversification aligns with Grab's strategic mission to push Southeast Asia forward by empowering all participants within its ecosystem—drivers, merchants, and consumers alike.

In Vietnam, Grab's goals are multifaceted, focusing on improving the efficiency of urban transportation, broadening access to essential services, and enhancing the daily lives of its users The company is also committed to becoming a major contributor to financial inclusion and promoting digital literacy Grab's core values—delivering exceptional service, fostering innovation, and promoting inclusivity—steer its operations and strategic decisions, ensuring they not only align with customer needs but also support broader socio-economic advancements

Through these endeavors, Grab not only sustains its market leadership but also actively contributes to Vietnam's dynamic digital landscape, ensuring that its growth aligns with the country's rapid economic and technological development

I Case 1: Miscommunication between the company and employees 1 Overview

Grab, a dominant ride-hailing company in Vietnam, finds itself entangled in a complex situation with drivers and the government Recent fare increases implemented by Grab have sparked driver protests and government scrutiny While Grab justifies the rise citing a government regulation, the Vietnamese General Department of Taxation disputes their claim

On December 5th, Grab increased the deduction rate per trip to 27.272%, which includes the 20% app usage fee (unchanged) along with VAT Grab took this action following the 1mplementation of Decree 126, which changed the calculation method for value-added tax (VAT) on technology-based ride-hailing services

On December 7th, hundreds of GrabBike drivers gathered to encircle the company's office on Duy Tan Street (Cau Giay District, Hanoi), protesting against the recent increase in deductions after Grab raised prices for customers and increased the deduction rate per trip for drivers, starting from December Sth Most drivers tumed off the app, went on strike, and refused to pick up passengers this morning

Later, more drivers flocked to Grab's headquarters on Duy Tan Street, all turning off the app and hoping to negotiate with company representatives Not stopping there, this group continued to organize a march around Hoan Kiem Lake, Hoan Kiem District, Hanoi While marching, they honked horns and displayed banners with slogans "Oppose Grab's increase in VAT deduction to partners and drivers”.

The police had to mobilize forces to the scene to ensure security and order Around 2 p.m., this group temporarily dispersed, then split into small groups heading towards Cau Giay District The same situations also occurred in other cities for example: Da Nang, H€M

2 Reasons for studying this situation

In today's dynamic and fast-paced business environment, effective communication is paramount to navigating change and innovation Miscommunication between a company and its employees can have a profound impact on the company's overall performance and reputation These losses can include financial losses due to poor performance, decreased employee morale, and growing customer dissatisfaction

By analyzing the case of Grab and its employees, we aim to understand the consequences of miscommunication between the company and its employees and how to overcome the consequences

Analyzing miscommunication between Grab and employees is not only armed at resolving conflicts but also proactively improving communication methods between the company and employees By doing so, Grab can build a more cohesive, resilient, and customer-focused organizational culture, ultimately strengthening its position in the market and driving long-term success

3 Reasons why it happened?

e Lack of trust between Grab's management and drivers:

1 Perception among drivers that Grab prioritizes profits and investor interests over driver well-being and fair treatment Without an official

announcement, Grab adjusting an increase in deductions and an increase in base fares was proved to decrease the driver’s earnings Consequently, drivers are left uninformed about the genuine motivations behind the heightened commission rates, fostering frustration and distrust 2 Lack of transparency from Grab's management regarding the true

motivations behind the fare increases and commission hikes, leading drivers to question the stated reasons Grab implemented the fare increase and commission hike without effectively communicating the rationale to drivers From interviews conducted during the protest, many drivers expressed that if Grab wants to impose fees, they must be clear and transparent about them.

e Differing frames of reference between Grab's management and drivers: 1 Grab's management likely focused on factors like regulatory compliance,

maintaining competitiveness, and financial considerations that informed their decision And is this case is ensuring compliance with new tax regulations (based on their interpretation of Decree 126) to avoid potential fines or legal issues

2 The use of technical or legal jargon by Grab in referencing regulatory changes may have been less relatable or understandable to drivers unfamiliar with those details In this case, the lack of clarity around whether Decree 126 applies to Grab drivers as business partners or employees further compounds the differing frames of reference and communication barriers in this situation

3 Drivers, being on the front lines interacting with customers, may also have unique insights into service quality and customer experiences that Grab's management did not fully appreciate The escalation of prices for customers

may prompt them to explore alternative service providers, potentially

resulting in a shift in their preferences The gradual transition has led

drivers to express concerns regarding its impact on their take-home eamings, working conditions, and the fairness of commission rates e Regulation Misinterpretation:

Grab's justification for the rise hinges on a specific government regulation However, the Vietnamese General Department of Taxation disputes their interpretation In other words, Grab's reasoning on this matter is unclear This public disagreement raises questions about Grab's commitment to accurate communication with regulators

4 Consequences

The lack of transparency about how discounts are calculated has created dissatisfaction and opposition from Grab drivers On the morning of December 7, hundreds of GrabBike drivers turned off the application and gathered at this business's office on Duy Tan Street (Cau Giay, Hanoi), protesting the newly increased deduction level (Lao Dong, 2021) These technology drivers want Grab to be transparent and clear in increasing discounts from 20% to 30% According to VOVTV (2020), Mr Dang Tien V., a technology driver, said "We want Grab to clarify whether this tax increase of 10% is legally paid by the driver or by the transportation business Besides, we suggest that Grab consider adjusting the discount to the original price" They continued to organize parades around Sword

Lake, Hoan Kiem District, Hanoi This group walked, honked, and held up banners with the slogan "Protest Grab increasing VAT discounts for partners and drivers."(VTC News, 2020) This greatly affects the security and order of the region

Eroding Driver Loyalty: The lack of clear communication has significantly eroded trust between Grab and its driver network Drivers feel left out of the loop and suspect Grab is prioritizing profit over their well-being This can lead to a decline in driver morale and potentially impact service quality for passengers

5 Lessons

1 Communicate Policy Changes Transparently and Preemptively:

e Grab's lack of clear and proactive communication around the fare increases and commission hikes left drivers feeling uninformed and undervalued e Companies should transparently explain the rationale, implications, and timelines for significant policy changes that impact stakeholders like contractors or employees

e Providing comprehensive information upfront can help mitigate misunderstandings and potential backlash

2 Align Interpretations of Regulations with Relevant Authorities:

e The disagreement between Grab and the General Department of Taxation over the interpretation of Decree 126 highlighted the importance of regulatory alignment

e Firms should actively engage with regulatory bodies to ensure consistent understanding and application of relevant laws and policies and avoid divergent stances that could undermine credibility with stakeholders and authorities

3 Understand and Address the Core Concerns of Stakeholders:

Grab's communication focused on regulatory compliance and business considerations, failing to resonate with drivers’ primary concerns around income and fair treatment Addressing stakeholders’ fundamental needs and concerns is crucial for effective communication and maintaining positive relationships The increasing frequency of driver protests indicates a deficiency in accessible channels for Grab drivers to express concerns or offer feedback prior to reaching a critical juncture

Implementing mechanisms such as hotlines, representative councils, or periodic surveys can facilitate the proactive identification and resolution of issues Establishing transparent grievance redressal procedures is also essential for mitigating tensions and addressing conflicts before they intensify

6 Recommendations ® Prewrite:

Develop a robust framework for objectively assessing the fairness and long-term sustainability implications of policy changes, backed by data and industry benchmarking Grab should warrant a direct vs indirect communication approach based on the level of 1mpact ơn stakeholders like drivers

To ensure the efficacy and sensitivity of communications, Grab should convene a cross- functional team comprising legal, operations, driver relations, and communications professionals This team would be tasked with meticulously reviewing and validating messaging before its dissemination

@ Opening:

Utilize positive data and feedback showcasing the invaluable role and contributions of drivers to Grab's success to craft sincere and appreciative opening statements Refrain from raising false hopes or making misleading statements that may exacerbate existing trust issues with drivers

Consider involving driver representatives or unions in the messaging process to ensure a respectful and relatable tone that resonates with the driver community

e@ Provide Reasons:

Develop explicit guidelines for employing objective and neutral language when communicating policy changes, avoiding judgmental or discriminatory wording Prior to presenting regulatory changes as justifications, conduct a thorough legal review to validate interpretations for accuracy

Offer drivers comprehensive context and background information to facilitate their understanding of the broader industry dynamics or market conditions driving the necessity for the changes

Grab will have to issue documents for drivers, so by the end of the year, drivers will have the right to settle personal income tax and claim personal income tax refunds (Nguyén, 2020)

e Soften the Bad News:

Provide traiming crisis managing techniques such as utilizing subordinate clauses, passive voice, and breaking up information into smaller segments to mitigate the directness of conveying negative news.

Establish a system for message testing and feedback loops involving driver focus groups to refine the messaging strategy before widespread dissemination This ensures that the communication approach resonates with drivers and minimizes potential backlash, as evidenced by recent protests

In instances where policy changes may lead to driver dissatisfaction, Grab should be committed to exploring alternative solutions or compromises to ensure that drivers feel supported and empowered to adapt to these changes effectively

e Close Pleasantly:

Ensure the availability of up-to-date resources, such as online portals, support hotlines, and FAQs, containing information about available alternatives, support services, and grievance redressal mechanisms for drivers This empowers drivers to access necessary assistance and information easily

This demonstrates Grab's commitment to valuing and supporting its driver partners, fostering a positive and collaborative relationship

II Case 2: Customers 'angry' because of the GrabPay electronic wallet by

Moca I Overview a) The case

Grab first introduced the cashless payment method GrabPay by Moca on Oct 2020, asserting that the new feature will “bring customers swift, seamless and secure cashless payment experience” on its app

Earlier September 11, Grab announced via a press release that it had established a major relationship with MOCA Technology and Service Joint Stock Company (Moca), a Vietnam-based digital payment service, which will handle cashless payment across the ride-hailing app’s services in Vietnam, from GrabBike and GrabCar to GrabFood

According to the ride-hailing app, the launch of GrabPay by Moca is being rolled out to all users and the process will be completed by the end of the month However, it appears that Grab has yet to provide any further assistance to all these problems rather than the activation instructions and reassurance Common complaints of Grab and Moca users in Vietnam include:

e@ Forced use of the Moca wallet: Vietnamese Grab users have accused the ride- hailing app of forcing them to switch to a new payment option called Moca The top-up prepaid account of the app was gone, and users were allegedly compelled to use the new payment method

Anh reported to Tuoi Tre News that the Grab app prompted her to activate her GrabPay by Moca account to access her existing GrabPay Credits She was aware of the upcoming change but didn't anticipate being required to switch to the new system Anh expressed concern because she still had funds in her account from before the transition and believed she should be able to use them (Anh, 2018)

“T still have money in my [GrabPay Credits] account, so basically, I have the right to use it up as that amount was added before Grab changes to the new payment method,” Anh told Tuoi Tre News

Customer opinions suggest that as a technology company, Grab should have proactively notified and assisted customers with the app transition and payment method changes, enabling them to adapt quickly (AHONG, 2018) @ Inconvenience and lack of choice: Grab users in Vietnam have expressed

dissatisfaction with the lack of choice in payment methods and the inconvenience caused by the abrupt change to the new payment method since the mobile wallet only supports eight banks - BIDV, Vietcombank, Vietinbank, Sacombank, ACB, SCB, VPBank and Timo

“Grab and Moca shall facilitate such linking by way of using ATM card details” and “customers cannot link VISA/ MasterCard/ Amex/ JCB debits cards unless Vietcombank issues them,” the notification in the second step to activate GrabPay by Moca reads This is also the reason why L Phuong, a Binh Thanh District, hesitated to complete the activation and kept using cash in the meantime

“Now that I am using a service of another big and prestigious bank which is still not on the list of banks that can be linked [with GrabPay by Moca], I do not know how to continue to activate,” L Hoa, an officer worker in District 1, told Zing (Anh, 2018)

@ Technical problems: Technical problems have arisen during the refunding process, affecting users' card or bank account linked with their Moca e-wallet

Mình đã yêu cầu #Grab phải trả lại tiền sau khi hãng này nâng cấp lên cái thanh toán Grabpay với Moca khi gió gì đó, yêu cầu bắt buộc là phải có thẻ ATM của các Ngân hàng trong danh sách liên kết ít òi, kể cả có rồi cũng chưa chắc Activate đc

Và nếu ko có thực hiện theo kiểu bắt buộc trên thì khách hàng bị treo tiền đã

nạp credit trong tài khoản chả biết tới khi nào và ko đc sử dụng các đặc

quyền của Grab Credit nữa

Cách đòi tiền về như sau vào Help center, sau đó search Xem thêm

GrabPay Credits còn lại - How do | get a refund of my existing

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Tôi muốn gửi lời khen đến tài xế

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Figure 2.1 Customers are frustrated because they cannot use the money in their accounts

Ms Hoang Thuy reported that she still has money in her Grab account, but now has to pay in cash, which is more expensive and inconvenient According to Ms Thuy, many of her friends and colleagues who use Grab are also experiencing these issues (Duy Anh, 2018)

b) Grab’s response to the case

In response to issues with the GrabPay by Moca transition, Grab Vietnam issued an apology, recognizing problems such as unexpected switch difficulties and invisible balances in GrabPay Credits They reassured users that their funds were secure and would be accessible after activating the new system Additionally, Grab provided payment alternatives for those without compatible ATM cards and committed to resolving