How to create VALUE

Bringing down your price will naturally create customer delight.

And increasing compensation, creates job satisfaction.

Your margin is that remaining space between price and compensation.

To compete with large companies who can easily bring down their prices while providing competitive compensation, you'll need to go beyond pricing and compensation tactics.

How GRAB creates value

GRAB is Southeast Asia's leading superapp that provides services like deliveries, mobility and even financial services.

Value to customers

If you put GRAB in our chart, you'll notice that their pricing isn't that low. But they have extended their value by creating a better user experience: improved speed of delivery, diverse options, efficient technical support.

The whole experience adds to the customer delight, increasing the limit of the willingness of customers to avail their services.

Value to service providers

The way they deal with their service providers is also something to aspire to.

Unlike Uber (back when they were still around), GRAB was more inclusive. Instead of competing with the traditional taxi service, they opened their doors to the drivers and encouraged affiliation.

And remember the faces of Uber drivers when they find out that you're headed to Alabang or Antipolo?

Unfortunately for Uber drivers, the Uber app doesn't tell them where you're headed until you're inside the car.

By also considering driver satisfaction, GRAB extends the limit of the willingness of the drivers to sell their services.

The value-added allows GRAB to increase their prices, lower their compensation to their drivers, and increase their margin.