Ride-hailing app Grab will be reducing points earned per transaction as well as revising points needed for redemption from 2 March 2020.
Grab said that its GrabRewards catalogue will undergo a revamp that revises points needed for redemption, "while offering a larger variety of rewards". Apart from switching pricing structure for redemptions, the ride-hailing company will also be introducing GrabRewards Flash Sale events for more discounts for users.
Explaining the move, a Grab spokesperson said as Grab evolves from a ride-hailing app to a lifestyle app, it is constantly "evaluating existing customer programmes" so that it can "deliver better experiences on the platform".
"Our customers today interact with the Grab app more frequently for their transport, food, payments and other needs, and are demanding for better engagement on the platform. With shifts in customer expectations coupled with the overall growth of our ecosystem, the way we reward and create value for our customers must change too," she explained.
She further elaborated that while the points earned on each dollar spent will be lower, "customers have more places to earn and spend their reward points at millions of merchants, online, in-app and offline, with the recent launch of GrabPay Card". In addition, customers can also look forward to more ways of earning points and rewards, such as through challenges, flash sales and moment-based campaigns.
This is however, not the first time Grab has switched around its rewards loyalty system. In July 2018, Grab back flipped on its points distribution after several netizens expressed unhappiness about the initial changes. Several loyalty players Marketing spoke to said then that while Grab has made some good moves such as giving customers choice to earn points on GrabFood and in-store purchases, the reduction in points earned through Grab rides is, however, not a very welcoming move for members.
Meanwhile, Grab has been positioning itself as more of a lifestyle app in recent times. The firm recently rolled out the GrabPay card together with Mastercard, expanding its offline and online merchant ecosystem by allowing users to transact securely and easily. Available in digital and physical formats, the digital card is currently available in Singapore and will be launched in the Philippines in the first quarter of 2020, with other Southeast Asian countries to follow in the first half of 2020.
The GrabPay card is a culmination of Grab’s ongoing partnership with Mastercard that aims to bring financial inclusion to the millions of underbanked and unbanked in Southeast Asia. Users can apply for the physical numberless card after receiving their digital card.