business communication case study grab

Many clients said Grab 2 bánh | Áp dụng phụ phí “Thời tiết nắng nóng that charging for hot weather was extremely gay gát” tại một số khu vực từ ngày 06/7/2022 unreasonable, and this “exp

ATIONAL ECONOMICS UNIVERSITY CENTER FOR ADVANCED EDUCATIONAL PROGRAMS

BUSINESS COMMUNICATION

CASE STUDY: GRAB

Nguyễn Phương Anh 11210589

INSTRUCTOR: Le Thi Thu Mai, PhD

Ha Noi, May 2023

LIST OF TABLES Table 1 Comparison of symbolic meanings behind words/pÏirases ¿Sài se 10

LIST OF FIGURE

Figure I Grab's hot weather surcharge ch HH HH HH HH HH Hà tt 2 FIigure 2 The authorities' Interference 1n Grab's surcharge poÌIC ác c1 SH HH ra 7 Figure 3 Cold rice advertIisement & Chef Vo Quoc TespOI§e HH HH HH Hà 9 Figure 4 Negative comments on Facebook - ác cành HH HH Ho HH HH HH tới 12 Figure 5 Customers started boycotting GTrab ce cine eens 12

TABLE OF CONTENTS

2 PROBLEM 1: “Hot weather surcharge” 1 2.1 Situation Summary c2 122101 12112111111211211111 111011111 1111110111911 1H ng 1 2.2 Reasơons to Choose TÌis Case 0002012111211 11211111211 1211111 111101111 v10 11111 kg 2 2.3 Situation AnaÌySIs L1 011 2112112111111 0111111111 11 H1 HH HH 11x rên 3

2.3.1 Bypassineg Due to Vague WOFS Lnnnn HH1 HH HH HH 11kg 3

2.3.2 Different Frames of Reference Between IrIvers & Grab L1 c2 222222 4

2.3.3, Violation of the “Reliability Diligence” Dimension of Professional Behavior 4

2.4 CONSCQUETICES 1.H aaă 5 2.5, Lessons Learitt cccccccccccccccceeee et ee ec ie cee etee cee ecceen eect eteeeeteeneeeeteeeteeenieeteeestieneeeeestieeees 7

3 PROBLEM 2: “Goodbye Cold Rice” 8 3.1 _ Situation SUmmArV - L1 211211121211 12111211111111011111 111101111 H111 111x111 8 3.2 Reasons to Choose TÌis Case - L0 0020121111111 11211111211 01111111111 1111111211 kg 9 3.3 Situation Analy§IS 2 221201011 11211 111111511 11 H111 TH ng 9 3.3.1 Different Frames of Reference - cà 1 vn nh HT HH HH HH non 9 E2, na 10 E0) oốn .4‹ 11 3.3.4 Culture and Identity - 1 2221211121121 121 11211 112111112111 211111 1111121111811 Hy sg 11

=.' -%iiiiadaiiiẳiditảaiaồăẳảdd 11 kbtaiaaiaiaaadiaiiii 13

REFERENCES 14

GRAB

1 INTRODUCTION

Grab, which was established in 2012 by two Malaysian entrepreneurs, is becoming Southeast Asia’s leading “super app” Grab has expanded its operations into various business

verticals, starting as a ride-hailing service They offer a wide range of consumer, merchant, and

enterprise services Grab delivers food, groceries, and acts as an express connecting everything

to the doorstep of users Grab currently operates in Singapore, Malaysia, Cambodia, Indonesia,

Myanmar, the Philippines, Thailand, and Vietnam Up to 2022, the application has more than 200,000 driver partners, operating across 46 major cities and provinces in Vietnam Grab’s leading position in Vietnam is increasingly consolidated, accounting for most of the total market share of ride-hailing and food-delivering services in 2022 Despite its dominant position in the

field, Grab encountered certain communication problems

2 PROBLEM 1: “Hot weather surcharge”

2.1 Situation Summary

On July 6th, 2022, Grab added fees for hot weather in some provinces around Vietnam This fee was added directly to every order and simultaneously applied along with other support programs This action raised a wave of great anger from customers and drivers Many clients said Grab 2 bánh | Áp dụng phụ phí “Thời tiết nắng nóng that charging for hot weather was extremely

gay gát” tại một số khu vực từ ngày 06/7/2022 unreasonable, and this “exploitation” did not

Quỹ Đét tạo thên mắn,

protect customers at all Besides, although

trong qua trinn nogt độcg đưới thời ết nàng sông đạy gái, tử nạây 08/7/2022 Grab chính thức 4o dung

ong gey gắt", cụ thể như seu

Grab said extra fees were implemented to support the drivers, many drivers did not show

interest in this action

T4 00s 2` 06/7/2022

Neola) toi một số k

Áp dụng tọi một số khÙ VỰC từ n

Figure 1 Grab's hot weather surcharge 2.2 Reasons to Choose This Case

Highlight the importance of transparent business communication: clear and concise business communication has a positive impact on customers By providing transparent information, they can minimize skepticism and enhance customer loyalty Since Grab’s

announcement failed to achieve this, we decided to elaborate on this situation

Alert organizations about the connection between ethical communication and professionalism: when delivering bad news such as an increase in price, a company may use

different methods to sway the customers However, this must be authentic, actionable, and suitable to the company’s capability Only in this case may the company can preserve and

heighten its professionalism

2.3 Situation Analysis

2.3.1 Bypassing Due to Vague Words

Grab uses the word “Hot weather” to keep their message short and simple However, without a specific pre-identified threshold for such weather, this announcement appeared too vague and even inappropriate when applied to Vietnam’s climate in July

With the characteristic of Vietnam’s climate, either in the South or North, the weather in

the summer months is always hot, leading to confusion among receivers, causing them to question how this new fee will be applied Mr Quan, a regular user of Grab in Hanoi, once expressed:

"I do not object to the ‘hot weather surcharge’ to support the driver, but it is necessary to have clear conditions such as what the temperature is and what the weather is like to be counted as severely hot, not just relying on the general notification and then "pickpocket" the customer For example, in Ho Chi Minh City, the weather is hot and sunny all year round, so if it is sunny, will this surcharge be calculated? It is so vague"’

Besides causing confusion, this vagueness also led to an erosion of trust in the customer as they

even question the true motive behind the additional fee:

Mr Le My, a Grab user in Thu Duc City, said:

“Grab fees recently increased and tripled at peak hours And if you collect a ‘hot weather surcharge’, what will happen if it rains? Using the excuse to support the driver but gain more profit from the customer's money In general, it is absurd”

Mr Do Van Bang, CEO of Minh Thanh Phat Co Ltd, shared:

1 Thu phí "nắng nóng", Grab nhận phản ứng từ hành khách: "Cðng" phí tắc đường, trời mưa, giờ lại thêm trời nẵng?! (2022, July 9) DACAM VIET NAM Retrieved April 8, 2023, from https://dientudacam.vn/thu-phi-nang-

nong-eørab-nhan-phan-ung-tu-hanh-khach-eong-phi-tac-duong-troi-mua- gio-lai-them-troi-nang-8226.html

2 N Binh, C.Trung, & D.Thién (2022, July 9) Grab Thu Phí nắng nóng': ông Lớn Tận Thu Khách Hàng Bằng Cách ăn ké tải xế TUOI TRE ONLINE Retrieved April 8, 2023, from https://tuoitre.vn/prab-thu-phi-nang-nong- ong-lon-tan-thu-khach-hang-bang-cach-an-ke-tai-xe-20220708234802452.htm

3

"Grab cannot take the hot weather as an excuse to charge customers more money The weather changes every hour so if the weather suddenly becomes cooler during the day, will the surcharge be applied or not? This surcharge application is disrespecting customers”?

Similarly, Mr Bui Danh Lien, Vice Chairman of the Hanoi Transport Association also said that due to the ever-changing feature of the weather, it is difficult to determine what is considered hot weather Moreover, when traveling by Grab bike, the passengers themselves also suffer from the heat, not only Grab drivers, so there is a need for mutual sharing He also suspected that Grab is looking for ways to "pickpocket" customers

As a result, instead of trying to sympathize with Grab, customers find the announcement confusing, and inappropriate Some even start losing trust in Grab

2.3.2 Different Frames of Reference Between Drivers & Grab

While it seems theoretically reasonable for Grab to apply a hot weather fee in July, one of the summer months, some Grab drivers find the application time somewhat inappropriate* As a Northern Grab driver shared: “We didn’t receive any support in the peaking hot period of the

summer Now it is July, turning to August These rainy months had already extremely eased the

hotness” For the Southern drivers, they shared that July is still in the middle of the rainy season This mismatch situation causes these drivers to again suspect the real motivation of Grab Hence, although Grab said extra fees were implemented to support the drivers, many drivers did not show interest in this action, leaving the gap in the relationship between Grab and its driver-partners unchanged

2.3.3 Violation of the “Reliability Diligence” Dimension of Professional Behavior While announcing the purpose of the surcharge is to compensate and help their driver- partners, Grabs still earns a share of this surcharge The extra 5,000 VND was added to the trip

3 MChien (2022, July 13) Grab dang Lach luật đề thu phụ phí nắng nóng, Móc Túi Khách Hàng Người Lao Động Retrieved April 8, 2023, from https://nld.com.vn/kinh-te/grab-dang-lach-luat-de-thu-phu-phi-nang-nong-moc- tui-khach-hang-202207 13 120653938.htm

4 Minh Khanh (2022, July 9) Map md ‘phy phi nang nong’ cua Grab ZingNews Retrieved April 8, 2023, from https://zingnews vn/map-mo-phu-phi-nang-nong-cua-grab-post 1334122 html

fare, meaning that the new total fare was again divided between the driver and Grab with the original 7/3 proportion Hence, Grab was able to earn 1,500 per extra 5,000 that the customers

paid for the drivers Thus, Grab owners, who didn’t have to endure the scorching hot weather,

also enjoyed financial support from this so-called “helping fee” As Mr N.V.T., a GrabBike

driver, shared:

"The previously completed ride fee was 95,000 VND, Grab would receive about 28,500

VND, according to the ratio 7:3 Now the fee of the completed ride will be added 5,000

VND, the fee increases from 95,000 VND to 100,000 VND, Grab earns nearly 30,000 VND Sitting in the air conditioner, they still collect the “hot weather surcharge’, but the

driver can't have all of it"

This inconsistent action caused the customers to feel being lied to, lowering their trust in

Grab “If passengers are burdened with all kinds of fees, but the driver has no preferential policies and support, and the money goes to Grab's pocket, it is not acceptable’’® D.K shared

2.4, Consequences

Along with the disappointment, an erosion in Grab’s customer loyalty started to occur,

which eventually led customers to switch to other ride-hailing brands

Kim Hoa Theo tui tẩy chay grab là vừa Giá nhảy như tôm tươi, đắt gấp rưỡi taxi truyên thống

trong lúc trước đây giá Grab rẻ hơn Tui thấy Grab ăn chặn tiền khách hàng nhiều quá

Trả lời Chia sẻ #32 ®

5 N Binh, C.Trung, & D.Thién (2022, July 9) Grab Thu Phi 'nắng nóng': ông Lớn Tận Thu Khách Hàng Bằng Cách ăn ké tai x6 TUOI TRE ONLINE Retrieved April 8, 2023, from https: //tuoitre.vn/grab-thu-phi-nang-nong- ong-lon-tan-thu-khach-hang-bang-cach-an-ke-tai-xe-20220708234802452 htm

6 Thu phí "nắng nóng", Grab nhận phán ứng từ hành khách: "Cðng"” phí tắc đường, trời mưa, giờ lại thêm trời

nang?! (2022, July 9) DACAM VIET NAM Retrieved April 8, 2023, from https://dientudacam.vn/thu-phi-nang-

nong-grab-nhan-phan-ung-tu-hanh-khach-cong-phi-tac-duong-troi-mua-gio-lai-them-troi-nang-8226 html

Bin Kinh nghiệm của mình khi đặt mà thấy thêm phí nó tăng lên cứ chuyển qua app khác là giá siêu rẻ hơn, tiết kiệm hơn Lúc mua gió, hoặc phí cao điểm chọn taxi thường đi còn rẻ hơn

nha, nên khi nào thấy phí cao thi cứ qua các app khác

Trảlời Chia sẻ #22 '#

Johnny Quay lại taxi truyên thống, luôn rẻ hơn 20.000đ - 30.000đ so với Grab môi chuyến Trảlời Chia sẻ đè 22 ©

This situation even worsened with the authorities’ interference Aware of Grab’s customer dissatisfaction with the new policy, The Department of Competition and Consumer Protection (Ministry of Industry and Trade) stepped in and asked Grab to immediately explain and clarify the hot weather surcharge policy Although being able to explain its process is ethical, Grab still had to stop its new policy due to the incapability of their system to automatically separate the driver’s extra fees from the trip fare as promised (Figure 2)’ As exposing their system limitation, Grab’s image was negatively affected as being an unprofessional company, giving unreliable promises This again deepened the impression of fraud and

conception attached to the brand name

7 Théng tin lién quan đến việc áp dụng phụ phí nắng néng cua Grab Moit.gov.vn (2022, August 15) Retrieved

April 8, 2023, from https://moit.gov.vn/tin-tuc/bao-chi-voi-nguoi-dan/thong-tin-lien-quan-den-viec-ap-dung-phu- hi-nang-nong-cua- grab html#:~:text=Grab%20%C4%9 1%C3%A3%20th%C3%B4ng%20b%C3%A lo

%20%C3%A Lp.06%20th%C3%A Ing%207%20n%C 4%83m9%%202022

6

BO CONG THUONG VIET NAM

MINISTRY OF INDUSTRY AND TRADE OF THE SOCIALIST REPUBLIC OF VIETNAM

ry GIỚI THIỆU ~ TIN TỨC ~ VĂN BẢN PHÁP LUẬT ~ DVC TRỰC TUYẾN THỐNG KÊ ~ MEDIA ~

Trangchủ Tintức Thông báo

Thứ 2, 15/08/2022 | 21:58 ~AA*|E2@®& HOẠT ĐỘNG

Thông tin liên quan đến việc áp dụng phụ phí nắng nóng của Grab

CE os

Liên quan đến sự việc Công ty TNHH Grab (Grab) áp dụng phụ phí “thời tiết nắng

nóng gay gắt" (“phụ phí nắng nóng”), thời gian qua, Cục Cạnh tranh và Bảo vệ

người tiêu dùng - Bộ Công Thương (Cục CT&BVNTD) đã tiến hành làm việc với

các bên liên quan, tìm hiểu, thu thập thông tin nhằm làm rõ sự việc, cụ thể như

sau: Thứ trưởng Bộ Công Thương Đỗ Thắng

Hải làm việc với Chủ tịch Tổ chức Xúc tiến

thương mại Nhật Bản (JETRO)

Grab đã thông báo áp dụng "phụ phí nắng nóng" với các dịch vụ vận chuyển hành

khách, hàng hóa bằng xe mô-tô hai bánh, gồm GrabBike, GrabFood, GrabMart và T.„ qộng lực cho cộng đồng doanh GrabExpress tại Hà Nội, Thành phố Hồ Chí Minh và một số khu vực khác tại Việt Nam _ nghiệp Việt Nam — Luxembourg thic day

kể từ ngày 06 tháng 7 năm 2022 "Phụ phí nắng nóng" được áp dụng với điều kiện nhiệt hợp tác thương mại và đầu tư

độ ngoài trời trong khung giờ nhất định đạt từ 35oC trở lên Các khung giờ này được -

Grab xác định trên cơ sở tham khảo dự báo thời tiết tại các trang tin điện tử: Eliseueoke Fash a Luxembourg

hftps:/Awww.accuweather.com/và https:/Awww.tomorrow io/

Grab khẳng định, 100% nguồn thu (sau thuế) từ "phụ phí nắng nóng” được dành cho đối THỊ TRƯỜNG NƯỚC NGOÀI tác tài xế của Grab

Tuy nhiên, do hạn về thiết lập hệ thống, đặc biệt là trong việc tự động tách bạch và

phân chia doanh thu để có thể hạch toán 100% nguồn thu (sau thuế) từ phụ phí này cho

đối tác tài xế nên Grab đã ngừng áp dụng “phụ phí nắng nóng" kể từ ngày 07 tháng 7

năm 2022

Figure 2 The authorities' interference in Grab's surcharge policy

2.5 Lessons Learnt

Grab must notify consumers of the application, adjustment, and cancellation of the price policy, fees, surcharges, and other general transaction conditions before making a transaction

The content must be complete, clear, understandable, and in accordance with the law on

consumer protection

Consistent performance is one of the key aspects of building trust and professionalism Only services and products within the company’s capability should be offered to customers