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ComfortDelgro Taxi $54 Total Prize For A Challenge Pales To Grab's $100,00 Credit Giveaways

Screenshot from https://www.facebook.com/ComfortDelGroTaxi/
ComfortDelgro Taxi launched a contest on Sunday 23 July 2017 to get its taxi riders to upload ComfortDelgro's Taxi flat fares and 1 other fixed fare and is giving away a total prize of $54 promo codes to the top three highest savings.

In comparison, when Grab ran a contest to introduce its JustGrab service, which connects both taxis and private hire vehicles, Grab gave out 10,000 free rides. If each ride average out to $10, 10,000 free rides would have cost Grab $100,000.

In their tertiary Grab-off challenge, Grab was offering $10,000 worth of ride credits to the students.

Image from https://www.grab.com/sg/ballinwithgrab/

ComfortDelgro Taxi's low total prize value seems ridiculously low given that its taxi business recorded $167.5 million end of 2016 (Source: http://www.straitstimes.com/singapore/transport/comfortdelgro-chalks-record-profit-of-317m).

One would expect that a conglomerate like ComfortDelgro will pull out all the stops to win over or back customers to use its mobile booking app.

One of my favourite marketing book is "Marketing Warfare: How to Use Military Principles to Develop Marketing Strategies" by Al Ries and Jack Trout. In the book, ComfortDelgro Taxi should be taking an extremely defensive position, using its deep pockets, to fight off attacks from competitors like Grab. For example, it could have given $10,000 worth of promo credits and it wouldn't cause a dent in its previous year's profits.

However, the $54 total prize money that ComfortDelgro has put up is like putting up a paper thin wall to fight off attackers coming in with their heaviest artillery.

The $54 total prize money also creates a perception that the taxi company isn't really interested to beat its competitors.

It isn't surprising comments appearing in on ComfortDelgro Taxi Facebook Page has been negative with most saying it isn't worth their time.

The contest, itself, could and would for or against ComfortDelgro Taxi.

Some users could put in price comparison during low peak periods in which Grab or Uber would win hands down.

However, during periods when there is Grab or Uber surge pricing, ComfortDelgro Taxi flat price may win the game. Unfortunately, surge pricing often occurs during peak periods when ComfortDelgro Taxis have to include all its surcharges which would bring prices on level terms with its competitors.

If ComfortDelgro Taxi really wants to beat Grab or Uber, it should be looking deep to incentivise both taxi driver and riders.

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