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TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES

Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000


College of Liberal Arts

THE COPING MECHANISM AND UTILIZATION OF MANAGEMENT TOWARDS


THE FAKE BOOKING TO STABILIZE AND PROTECT THE
OPPORTUNITIES FOR THE GRAB RIDERS

A Case Study
Presented to Technological University of the Philippines
College of Liberal Arts
In Partial Fulfillment of the Requirements
On the Subject
ECC3-M Entrepreneurial Leadership in an Organization

Second Semester
Academic Year 2020-2021

Submitted By:

GROUP I
SECTION BSEN-ABM-1A-M

Group Members
Adora, Katrina
Dilag, Katharine Vyoma A.
Sultan, Monaisa
Velasco, Charie
Villarante, John Llyod Penaroc

May 2020
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

INTRODUCTION

The introduction of the case will cover the relevant information necessary for the
study which may include the overview on the background of GrabFood, Definition of
Terms defined and utilized by Grab, the Code of Conduct, and the Terms of Service.

I. Background of the Study

GRAB

Grab Holdings Inc., also known as Grab, is a Singaporean multinational company


that has a headquarter located in Queenstown, Singapore. Aside offering transportation
service business towards the users, the company also offers food delivery (GrabFood)
and digital payments (Grab Pay) services made available via a mobile app. The
founder of “MyTeksi” app in Malaysia first came from Anthony Tan (Chen Bingyao)
together with Tan Hooi Ling. The company started in 2012 as the MyTeksi app based
in Kuala Lumpur and expanded the following year as GrabTaxi. In 2014, their
headquarters are relocated in Singapore. The company operates mostly in Asia,
specifically in the countries of Singapore, Malaysia, Cambodia, Indonesia, Myanmar,
Philippines, Thailand, Vietnam, and Japan.

GrabTaxi began to expand their operations in the Philippines in August 2013,


followed in Singapore and Thailand later the next month, October of the same year. In
2014, GrabTaxi continued to expand and grow their company around South East Asian
countries in Vietnam and Indonesia. The company were able to also extend their
services not limited to as transportation service, they launched GrabCar, GrabBike,
GrabHitch, GrabExpress, and GrabCar+ (a service that provides a fleet of higher-end
cars in the Philippines) as to also provide alternative forms of transportation to the
public. In 2016, Grab added a feature in-app instant messaging called “GrabChat” to
allow a simple communication between the clients and the drivers. They also
introduced in the same year “GrabShare”, which offers a taxi and car-sharing services.
During 2017, Grab launched another service called “GrabCoach” that is made for
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

booking large passenger vehicles. “GrabFamily” is also being launched in the same
year which is made available for young children below 7 years old, which complies to
the policy of children under 1. 35 meters must be sitting on a child booster or child
restraint. This service is made necessary for compliance as to have stated that private
hire cars under Grab or Uber, are not exempted to the child seat requirement. On
March 2017, LTA released a new regulation for private hire cars called “Private Hire
Car Vocational License” (PDVL) and tagged to the route number which aims to ensure
the quality of private hire car services and to prevent route fraud.

During March 2018, Grab incorporated their business with the South East Asian
operations of Uber. The acquisition process involves the takeover of assets and
operation from Uber to Grab, this includes the UberEATS, which led to the known
timely food delivery service GrabFood. Uber holds a 20% stake in Grab. In the same
year they launched a scooter rental service known as GrabWheels and GrabCar Plus
which offers a larger vehicle in exchange for a 20% premium fee.

Expanding Services Beyond Transportation

Month and Year Service Description


November 2016 GrabPay Digital payment service
among third-party
merchants.
December 2016 GrabRewards Rewards programme
service. The acquisition
of Indonesian online
payment startup Kudo
(April 2017) which
integrated with Grab’s
payment system and the
initial step into
expanding fintech
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

services.
May 2018 GrabFood A food delivery service.
October 2018 GrabExpress A courier service
2018 Grab Financial A financial arm of the
company which offers
payment, insurance, and
financing services.
April 2019 GrabKitchen Launched its first cloud
kitchen which is a food
delivery service in
Indonesia.
Super App To consolidate its online
services into one
platform, as well as
launching Hotels and
Tickets.
February 2020 GrabCare Healthcare 24-hour
services, as to give rides
for healthcare workers.
2020 GrabMarket A daily essentials
delivery.
GrabAssistant On-demand concierge
services.
January 2021 Grab Financial Group The financial services
unit that raised more
than $300 million from
South Korea’s Hanwha
Asset Management.
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

GRAB Business Philosophy

Vision

“To become Malaysia’s number one everyday consumer app.”

Our Mission

“Drive Southeast Asia forward by creating economic empowerment for everyone.”

Some years back, when our co-founders Anthony and Hooi Ling met in business
school, they discovered a common passion for their home, Southeast Asia.

While the region is wonderfully diverse and full of potential, its people face very
real everyday challenges. Cities are getting more congested. Public infrastructure is
limited. And income inequality is widening, leaving behind those who are
underprivileged and underserved.

These challenges affect millions of people and businesses, and they inspired our
co-founders to build a technology-oriented company in Southeast Asia that could
deliver both profit as well as positive social impact.

Nine years on, Grab has grown into a household name in Southeast Asia. As the
region’s leading superapp with hyperlocal services, we strive to live up to our mission
every day.

Who we serve?

Every day, we serve millions of consumers, merchants, and drivers on Grab.


Consumers look for quality services to ease their everyday lives, while merchants and
drivers get access to greater earning opportunities because of our large consumer base.
In fact, we are proud that many of our driver-partners got their very first earning
opportunities with Grab.
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

• Consumers

Grab consumers get choice, fast delivery times, safety assurance, and value at
every price point.

• Merchants

Grab merchant-partners count on our wide reach, efficiency, and innovation to


grow their business, no matter the size.

• Drivers

Grab driver- and delivery-partners are empowered with the flexibility to earn, and
the technology that makes their earn-time more efficient.

Our Commitment

Grab was founded on the belief that a technology company in Southeast Asia
could both run profitably and create sustainable social impact. We hold ourselves
responsible to the environment and socio-economic development of this region, not
just for today, but also for the future.

The principles that guide us

At Grab, every Grabber is guided by The Grab Way, which spells out our mission,
how we believe we can achieve it, and our operating principles, which we call the 4Hs.
These principles guide and help us make decisions as we work to create economic
empowerment for the people of Southeast Asia.

• Heart

We work together as OneGrab to serve the communities in Southeast Asia.

• Hunger

We work to understand ground truths and drive improvements, big and small.

• Honour
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College of Liberal Arts

We keep our word and steward our resources wisely to build and sustain trust.

• Humility

We are a constant work-in-progress, and we never stop learning to get better.

Why Southeast Asia?

You mean apart from the fact that this is the fastest growing region in the world?
Despite the many infrastructural hurdles Southeast Asians face, over 73% continue to
believe that they will achieve their biggest dreams in this lifetime. With an attitude like
that, and ambition like ours, sky is the limit.

How We Empower Southeast Asia

• People

To open up opportunities for all, regardless of background or ability. We


provide income opportunities to all groups of people, including the disadvantaged,
as part of our commitment to push for greater inclusivity.

• Cities

To provide technological solutions to improve and build safer, smarter cities.


Many Southeast Asians face everyday limitations like traffic congestion and lack
of public infrastructure. As an everyday everything app, we solve everyday
challenges to make life a little easier.

• Planet

To protect our planet by minimizing our environmental footprint.

We only get one Earth. Let us take care of it. We are introducing measures
across our businesses and ecosystem to build a more sustainable future.
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

GrabFood Philippines

GrabFood is a food delivery service under the Grab Philippines that aims to
connect local food businesses to people. When you place an order with GrabFood, the
company receives it and assigns a GrabFood delivery partner to pick up the order from
the restaurant to bring it towards their client. Currently, GrabFood delivery services
are mostly available in Metro Manila and selected areas such as in Rizal, Cavite,
Laguna, Pampanga, and Cebu. GrabFood is available 24 hours in Metro Manila while
on the selected areas can range from 6:00AM or 9:00AM until 12:00AM, though it is
important to take note by the clients that even the GrabFood delivery hours are
available, each restaurant is independent on its own closing time.

GrabFood Business Philosophy

Vision

• Moving beyond ride-hailing, Grab brings more Southeast Asians online


through on-demand food and package delivery, cashless payments and
financial services
• Commute, eat, deliver, and pay, consumers can now access all their daily
essentials using Grab
• GrabFood is here to bring more food vendors online to satisfy food cravings

A. Code of Conduct
The Code of Conduct stated by the Grab ensures that the delivery partners are
responsible and holds accountable for any violation that may happen as they serve
their clients. According to Grab,
“Grab maintains a zero-tolerance policy towards violations of the Code of Conduct
that we hold our independent driver and delivery-partners accountable to as part of
our Grab community. The Penalty Framework provides details of infringements of the
Code of Conduct that may result in suspension or termination of user access to the
Grab platform.”
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

B. Terms of Service
The Terms of Service offered by the Grab covers the Transport, Delivery, and
Logistics that also presents on both parties, the delivery partner and the client who
ordered. Grab also stated that,
“By using the Service (as defined), you agree that you have read and understood the
terms in these Terms of Use which are applicable to you. These Terms of Use and the
Grab Policies (as defined) constitute a legally binding agreement (“Agreement”)
between you and Grab (as defined). The Agreement applies to your use of the Service
provided by Grab. If you do not agree to these Terms of Use, please do not use or
continue using the Application (as defined) or the Service.”

Definition of Terms
In these Terms of Use, the following words shall have the meanings ascribed below:

1. “Application” means the relevant mobile application(s) made available for


download by Grab (or its licensors) to Users and Third-Party Providers
respectively;

2. “Grab” means:
2.1. MyTaxi.PH, Inc in relation to GrabTaxi, GrabCar, GrabRent and Bus
Marketplace;
2.2. GrabExpress, Inc in relation to GrabExpress, GrabFood;
2.3. GrabBike, Inc in relation to GrabWheels;
2.4. in relation to Grab for Business, the entity stated at the Grab for Business
account sign-up page in relation to; and/or
2.5. the relevant subsidiary, affiliate, associated company of or entity jointly
controlled by Grab Taxi Holdings Pte Ltd.

3. “Grab Policies” means the following:


TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

3.1. the Privacy Policy;


3.2. the Grab Driver / Delivery Partner Code of Conduct or the Grab Customer
Code of Conduct, as may be applicable; and
3.3. all other forms, policies, notices, guidelines, frequently asked questions
(FAQs), or agreements provided to or entered into by you from time to time;

4. “Personal Data” is any information which can be used to identify you or from which
you are identifiable. This includes but is not limited to your name, nationality,
telephone number, bank and credit card details, personal interests, email address, your
image, government-issued identification numbers, biometric data, race, date of birth,
marital status, religion, health information, vehicle and insurance information;

5. “Platform” means the relevant Grab technology platform, portal or website that,
when used in conjunction with the Application, enables Users to request or access
Solutions;

6. “Privacy Policy” means our privacy policy accessible at:


https://www.grab.com/ph/privacy/ as amended from time to time;

7. “Service” means the linking of Users to Third Party Providers, or Other Users
through the Application, Platform and/or Software;

8. “Software” means any software associated with the Application which is supplied
made available for download and installation by Grab;

9. “Solutions” means the following transportation and/or logistics services which are
made available to Users through the Service (each a “Solution”):

9.1. GrabTaxi;
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Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
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9.2. GrabCar;
9.3. GrabRent
9.4. Bus Marketplace
9.5. GrabFood;
9.6. GrabExpress;
9.7. GrabWheels;
9.8. Grab for Business;
9.9. Any such other services which Grab may make available from time to time;

10. “Third Party Provider” means the independent third parties who provide the
Solutions to Users through the Service, including drivers, delivery partners and third
party merchants such as GrabFood Merchants;

11. “User” means any person who uses the Application, Platform and/or Software to
search for and obtain the Solutions; and

12. “User Charges” shall mean charges incurred by Users for the Solutions obtained
through the use of the Service, including any applicable tolls, taxes and any other fees
or charges that may be due for a particular use of the Service or Solutions.

It is also important to take note the relevant information provided on the


“Representations, Warranties, and Undertakings” by using the service are as follows:

i. All the information which you provide shall be true and accurate;

ii. You will only use the Application, Platform and Service for their intended and
lawful purposes;
iii. You will not authorize others to use your identity or user status, and you may
not assign or otherwise transfer your user account to any other person or entity;

iv. When using the Service, you agree to comply with all laws applicable to you
and/or your use of the Service;
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

v. You will provide accurate, current, and complete information as required for
the Service and undertake the responsibility to maintain and update your
information in a timely manner to keep it accurate, current, and complete at all
times during the term of the Agreement. You agree that Grab may rely on your
information as accurate, current, and complete. You acknowledge that if your
information is untrue, inaccurate, not current, or incomplete in any respect,
Grab has the right but not the obligation to terminate this Agreement and your
use of the Service at any time with or without notice
vi. You will only use an access point or data account which you are authorized to
use;
vii. You provide us the phone numbers of Grab users and other contacts in your
mobile phone address book on a regular basis. You confirm that you are
authorized to provide us with such numbers to enhance your use of the Service.

If you are a User, you further represent, warrant / undertake that:

i. You will not use the Application, Platform and/or the Software to cause
nuisance, annoyance, inconvenience or make fake bookings
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

II. Rationale
Fake booking became one of the problems of delivery riders. According to
Inquirer. Net (2019), Grab Philippines has cancelled 351,000 accounts of passengers
and customers who are found using bogus names for the past year. It also banned
125,000 accounts for often cancelling rides, creating multiple accounts, providing
unreasonable low rates to drivers, often cancelling orders in Grab Food and other
fraudulent activities. This data only shows that fake booking in online deliver app
should end.
The researchers conducted this study to discover the steps that the
management is doing in order to upgrade their system to prevent scam and fake
bookings. Another is to discuss the effects of these incidents to the management and
welfare of the riders. Additionally, to gather information on how these fraudulent
activities affect the wage of a Grab Rider. Lastly, this paper will serve as a reference
in proposing a certain solution to the management of Grab Food in order to prevent
fake booking activities/cancellation of orders.
In this time of pandemic, fraudulent activities should be given actions in
order to assure the welfare and healthy transactions between Grab Riders and
customers.
III. Objectives of the Case
The objectives of the case study titled to “The coping mechanism and
utilization of Management towards the Fake Booking to stabilize and protect the
Grab Riders” are the following:
• To identify the implemented rules and regulations of GrabFood
management before dealing with the fake bookings being encountered by
their delivery riders.
• To identify the implemented rules and regulations of GrabFood
management after dealing with the fake bookings being encountered by
their delivery riders.
• To identify how the issue of fake bookings affect the salary of Grab Riders
and the management.
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

• To identify how the management of the GrabFood will control and protect
the welfare of their employees by finding ways to improve their security
application system, specifically on the following:
a. Terms and Policies
b. Grab Application
c. GrabFood Management
• To seek an action on how the involved stakeholders will solve the issue
towards fake books, this includes the steps to prevent these fake bookings
and legal actions towards scammers in order to ensure the welfare, safety,
and the work of their delivery riders. The involved stakeholders are:
a. Grab Philippines
b. Government Authorities

IV. Statement of the Problem


The core problem in this study is to discuss the issues of the company towards the
management in the timely issue upon by users and employees. This study attempts to
disclose and find evidence to “The coping mechanism and utilization of
Management towards the Fake Booking to stabilize and protect the Grab
Riders”. More specifically it seeks to find the answers to the following questions:

1.) What are the deficiencies of the management of GrabFood that they could not
be able to prevent the Fake books from happening?
2.) How do these fake bookings affect the salary of Grab riders and the
management?
4.) What actions can the management do to improve the system of Grab food?
The actions are relevant to the following:
a. Terms and Policies
b. Grab Application
c. GrabFood Management
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

5.) What is being done by the stakeholders to control disinformation by grab


users that led to a fake booking with grab food riders? The stakeholders involved
are:
a. Grab Philippines
b. Government Authorities
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

THE BODY OF THE STUDY


The body of the study outlines the Philosophical Orientation, Theoretical Foundation, as
well as the relevant literatures and events that involves the stakeholders who are being
affected subject to the issue of Fake Booking. These relevant and timely events will serve
as a basis of further examining on the mentioned topic.

I. Philosophical Orientation

Idealism

Grab believes in creating an economic empowerment for everyone by utilizing a


technological based super app that serves as sources for the underprivileged and
underserved communities to earn job opportunities.

Existentialism

Grab believes that the stakeholders they serve- the Consumers, Merchants, and
Drivers- has the will to find themselves the provided choices of services as well as
the access on economic opportunities to earn salaries.

Pragmatism

Grab believes on the principles of heart, hunger, honour, and humility that drives
change for the betterment of the economic and social status of their served
stakeholders. Grab orient themselves through the use of technology and application
to offer choices and opportunities for the market.

Realism

Grab is guided with a realistic concept that aims to provide job opportunities to the
underprivileged and the underserved regardless of their background or ability,
provide technological solutions to improve and build safer cities as well as to
lessen the hassle of traffic, and lastly is to help the environment by minimizing
environmental footprints to build a sustainable future.
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

Naturalism

When it comes to the natural aspect, Grab recognizes the current situation of the
underprivileged and the underserved by the lack of the following:
a. Entitlement to have a source of income through job opportunities.
b. Access on equal and free economic opportunities regardless of their
background or identity
c. To have a flexibility to earn, and access on technology that makes their
earn-time more efficient.
II. Theoretical Foundation
Disruptive Innovation Theory
Grab improved the service of traditional restaurants and fast-food merchants with
their delivery by orienting the service through the use of their known super app, that is
not limited to one merchant, but several of them available in the location of the
consumer. This approach encouraged the large market of consumers to use Grab
because they offer fast and convenient way of services.
Merger and Acquisition Strategy
Grab started to take over the assets of Uber which led for the company to expand
and diversify their services, one known service that is being convenient in the times of
pandemic is the GrabFood, originated from UberEATS.
Diversification Strategy
Grab once only offered a transportation services that ranges from different
vehicles in shape and sizes as well as its options provided for specific purposes taken
in consideration for the convenience of their clients. Currently, Grab also started to
offer services beyond transportation that also serves convenience to both the
merchants, consumers, and riders.
Sustainable Development
a. Purpose over Profit Theory
Grab values their purpose and commitment to strive for a sustainable future
as well as to provide economic opportunities towards the community. They
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
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manifested their purpose to run profits ad at the same time is to create a


sustainable social impact.
b. Hedgehog Concept
Grab started from the passion by the founders of the company when it
comes to business and their home, the Southeast Asia. This passion led for
them to the contribution of improving the economic and social welfare of the
countries they denominated through establishing a company, known today as
Grab. As they recognize the inequal job opportunities present, they established
the company that will be able to dominate the population of the underprivilege
and the underserved so that they will be provided an access on the opportunity
to earn income despite of their background and identity. They are the delivery
partners and riders, which enables them to earn income and run profit because
of the large market of consumers. As the company keeps on growing, they
extended their purpose to also contribute to the environmental betterment
globally.

III. Related Literatures: The Large Topic and Subtopic


A. The statement and action of Grab regarding to the reoccurring issue of Fake
Books
• 'Use GrabFood responsibly': App warns of penalties to those who cancel
orders (Coloma, 2019). Facebook posts of users based in the Philippines
lament intentional cancellations of GrabFood orders. In its statement,
Grab urges users to use the app responsibly, and stern penalties such as
suspension will be charged to their account.
• In a statement, GrabFood said they reimburse unclaimed orders from
customers, and maintained that they are aware about their drivers having
to compensate and sell the unclaimed orders elsewhere when the
customer does not show up when they arrive at the drop-off point.
• According to Grab Philippines, which is “saddened by the issues
surrounding unclaimed GrabFood orders circulating online,” order
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College of Liberal Arts

cancelations (or customer no-shows) constitute just 0.01% of its food-


delivery service’s total transactions. “Grab has a reimbursement policy
in place, which allows delivery-partners to be fully reimbursed for all
unclaimed orders,” the company explains in a statement sent to us. “This
reimbursement policy is made known to all delivery-partners upon
activation on the platform.” Nevertheless, Grab points out that its food-
delivery drivers lose “valuable time and daily capital” whenever they
encounter order cancelations.
• This comes after a netizen took to social media to slam a customer who
canceled their order of worth P975 from a local milk tea shop. In a post,
the netizen recounted how her friend saw how devastated a GrabFood
rider was after a customer canceled the order.
She said the driver had P1,000 capital on that day alone, and asked the
customer to be “considerate” in wake of their small earnings and the
long lines in the milk tea shop.
B. Food Delivery Scams or known as “Fake Booking”, have often been occurring
despite under pandemic crisis in which affects the delivery riders on having to
suffer their earned salaries.
• The way most of these food-delivery services work now is via cash
transaction. The delivery person takes the online request, goes to the
restaurant, orders the food items, and then pays for said items with his or
her own money. Needless to say, when a customer cancels the order, the
delivery driver is left with stuff he or she does not want or need, bought
with cash that could have been taken home to the family. (Sarne, 2019)
• Las Pinas City - According to news report from PhilNews by Jayson Nelz
(October 2020) a netizen named Noel Enriquez has shared the photos of
several Grab Food workers who arrived in front of their house to deliver
foods. However, his family did not order anything from any delivery
services. Enriquez discovered that the orders have been addressed to his
uncle, which is not living in the area. He also explained that his uncle did
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College of Liberal Arts

not order anything. The netizen also revealed that another three riders
attempted to deliver foods on their house and found out that it was a fake
booking after the customer told them “It’s a prank”. The riders lost an
amount ranging from P4,000-P5,000. Noel also advised the public to stop
making fake bookings and order cancellations because riders will have to
pay for it.
• April 2021- According to the news report form PhilNews by Jayson Nelz,
netizens share their feedback and empathy when they saw pictures posted
by, She Mae Ilano showing over 20 Delivery Riders who are being
victimized through Fake Booking. A heartless scammer makes fake
booking and victimizes more than 20 delivery riders during the weekend of
Holy Week. A Grab rider bursts into tears because the Mcdo Shake
ordered by the scammer will melt and he could not sell it anymore. Ilano’s
neighbor bought all the shake and distribute it to the villagers. The
scammer also ordered 5k worth of pizza, 5k worth of lechon and 5k worth
of Popeyes food from other delivery workers. The riders get emotional and
cried after realizing that it was a fake booking.
• PhilStar, 2020- In the face of pandemic crisis, the services being offered
by delivery riders are among those considered as frontliners and also those
hardly hit by the ongoing enhanced community quarantine imposed in
Luzon as part of government's efforts to curb the spread of novel
coronavirus disease 2019. This has been stated after a picture of a
GrabFood Rider gone viral showing him eat the food he was supposed to
deliver after a customer cancelled the order. According to Internet users
who shared the photos, the food was from a canceled order amounting to
about P300. (Afinidad-Bernardo, 2020)
• Delivery riders came to aid a fellow rider who fell victim to a fake
booking. In a video that went viral on Facebook, the food delivery rider
was seen crying after he was victimized by a customer who made a fake
order around early morning. Paulino Baro Corro Jr. a Grab Food delivery
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College of Liberal Arts

rider who took the video, said he and his fellow riders consoled the driver
and offered to buy the food worth Php 599. (The Filipino Times, 2021)
C. Government Entities such as DTI and NBI seeks to take an action and a solution
to this ongoing delivery food scams.
• According to a news report by the Inquirer.net Philippines, the NBI urged
to investigate an occurring delivery scams known as “Fake Bookings”
which victimizes food delivery riders. A lawmaker is convincing the
National Bureau of Investigation (NBI) to conduct an investigation which
regards on recent reports of food delivery riders who became victims of
fake bookings. Deputy Speaker Bernadette Herrera, who authored the
proposed Magna Carta of E-Commerce Delivery Personnel, said “there
may be more to this than meets the eye” in the recent cases of fake
bookings victimizing delivery riders. One of the recent cases involves a
student who was surprised to see several delivery riders at his Quezon City
home after P15,000-worth of food items were supposedly ordered under
his name. But the student said he did not order the food items.
“They should turn over to the investigators all the directly relevant data on
online fraud committed using their online systems or mobile apps,”
Herrera said.
“Please help the probers build solid cases so when the criminal trial
ensues, those found guilty will go to jail. Please do not enter into ‘areglo’
or compromise deals with the suspects or accused,” she added.
Herrera likewise called on the National Privacy Commission and the
Department of Information and Communication Technology to support the
NBI in the investigation.
(Mercardo, 2021)
• According to a news report by the Inquirer.net Philippines, the DTI urges
the need to implement online payment to avoid fake food delivery
bookings or known as fake booking. The Department of Trade and
Industry (DTI) encourages online delivery users as well as the delivery
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College of Liberal Arts

companies such as Grab, the use of online payment to avoid fake food
delivery bookings. “Well, dito ho ay actually amin hong in-eencourage
ang online payment para talagang maiwasan itong mga fake bookings,
ibig sabihin mabayaran na ang itong mga binibili,” DTI Secretary Ramon
Lopez said during the Laging Handa briefing. Lopex also emphasizes the
importance of having the sim cards of users to be registered so that they
can be able to trace the fake buyers.
“Pangalawa isa ring panukala natin ififinofollow up ko nga rin ito eh
‘yung registration nung mga cellphone cards, ‘yung mga anong tinatawag
dito, yung sim card para talaga may traceability kung sino ho ‘yung may
intention o ‘yung mga naglilinlang o nanloloko dito ho sa mga online
transaction na ito,” he said. (Roy, April 2021)
• The Senate trade committee will fast-track a “timely and “relevant” bill
filed by Sen. Lito Lapid that seeks to protect food and grocery delivery
riders from fraudulent orders. The committee tackled Senate Bill No. 1677
which seeks to set up a mandatory reimbursement scheme for unjust
cancellation of orders.
“Let us fast-track this because it’s very timely, very relevant. Even after
the pandemic, this will be relevant because we have grown accustomed to
online services,” Sen. Aquilino “Koko” Pimentel III, chair of the Senate
committee, said.
“We will go beyond food and grocery delivery. All the delivery services
where this is applicable, the riders are victimized,” he added, noting that
his committee would immediately schedule a technical working group
meeting to iron out the details of the bill.
Before this, service providers Grab Philippines and Food panda made
separate manifestations detailing their systems to ensure the protection of
riders from the fraudulent practice.
According to Grab Philippines spokesperson Nicka Hosaka,
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“As of August 2020, there is no longer an advance that is done by the


riders. We slowly rolled it out wherein our merchant partners will get the
payment straight from those who order. There’s no longer any money paid
out by our riders,” she told the committee.
(Ramos, 2021)

RESULTS AND DISCUSSIONS


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College of Liberal Arts

The results and discussion of the study outlines the proposed solutions, analysis of the
approaches and strategies by Grab in resolving the conflict, the alternative courses of
actions, the recommended courses of action by the researchers, and the implementation on
the courses of action. The stated solutions and courses of actions being mentioned are
relevant to the topic of resolving the delivery scams being encountered by Grab
Philippines.

I. Proposed Solutions
The proposed solutions by the company and the authorities may or may not have
been effective towards resolving the issue of fake booking. Otherwise, it is possible
that it may or may not have yet implemented due to following a legal process. The
proposed solutions by involved stakeholders are as follows:
A. Grab Philippines
• According to GrabFood Philippines, the said customers who do not show
up, cancel, or claim their items may face penalties on their account,
including suspension.
• Grab Philippines had gradually reformed its policy so that the payment of
customers would be directly given to the service provider’s merchant
partners.
B. Government Authorities
• The Department of Trade and Industry (DTI) encourages online delivery
users as well as the delivery companies such as Grab, the use of online
payment to avoid fake food delivery bookings.
• DTI also emphasizes the importance of having the sim cards of users to
be registered so that they can be able to trace the fake buyers.
• The Senate trade committee will fast-track a “timely and “relevant” bill
filed by Sen. Lito Lapid that seeks to protect food and grocery delivery
riders from fraudulent orders. The committee tackled Senate Bill No.
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

1677 which seeks to set up a mandatory reimbursement scheme for


unjust cancellation of orders.

Grab Philippines have been working on their Terms and Policies that the users
should also be agreed on, but due to sudden and reoccurring cases of being
victimized by these scammers, the government authorities will also have to take an
action. When it comes to the legal process, the duration might take a long time before
it is officially effective. The company will also have to reconsider the following
proposed solutions by DTI in order to prevent these delivery scams from happening.

II. Analysis of The Approaches and Strategies Used by GrabFood Philippines in


The Context of Improving their Cybersecurity

Grab must be evaluated on the emphasis of their strategies and approaches


towards resolving the conflict of delivery scams or known as Fake Booking, this
includes the following:

• The compromised salaries earned by the delivery partners


• Securing the identity of the consumers or clients
• Strengthen legitimacy of consumer accounts
• Improved Cybersecurity of the Grab App
• Revised Terms and Policies Agreement
Did GRAB were able to resolve the reoccurring issue of Fake Booking?
The strategies and approaches proposed by Grab Philippines were only through
releasing a warning and establishing a reimbursement policy to save the earnings of
their delivery partners. However, the solutions they have proposed and implemented
were limited to proactive measures in resolving the problem that results for delivery
scams on reoccurring.
The Reimbursement Policy they implemented assisted and prevented on
compromising the salaries of the delivery drivers whenever the order is unclaimed, as
this will be shouldered by the company. Though, the capital of the company will be
compromised by this policy.
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
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College of Liberal Arts

Grab did not have enough statement when it comes to the security on the identity
of their clients and consumers, this also follows an inefficient statement when it
comes to their Cybersecurity.
III. Alternative Courses of Action
The part of this study outlines the identified Alternative Courses of Action that
can be done by the stakeholders involved in order to resolve the occurring issue of
Fake Booking. The identified solutions by the researchers are as follows:
1. Apply “Verified Account Policy”
The identity of consumers should be verified by such: Legitimate ID, Email
Address, and Cellphone Number. For additional information, the profile of the
clients is taken through a Live Selfie.
2. Cybersecurity Team
The management should have a team that will secure the identity of clients as
to prevent and dissolve any dummy accounts.
3. Mandatory usage of GPS prior and later making an order.
The addressed location by the client cannot be changed unless the GPS detects
it; this will verify and track the exact location of users as well as to prevent
any delivery scams.
4. Remove the Cancellation of Orders Policy
Grab will have to remove the Cancellation of Orders Policy in order to
prevent the orders from being cancelled whenever Fake Booking Suspects
makes an attempt to victimized grab delivery partners.
5. Remove Cash on Delivery Policy
Grab will have to highly encourage the users to utilize online payment when
making an order to prevent delivery scams.
IV. Recommended Courses of Action
The recommendation of the study outlines the preferred solution of the
researchers pertaining to resolve the issue of Fake Bookings. This also outlines the
recommended methods of the researchers to further enhance the study. The
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College of Liberal Arts

recommended courses of action by the researchers towards the company are as


follows:
1. Apply “Verified Account Policy”
2. Cybersecurity Team
3. Mandatory usage of GPS prior and later making an order.
V. Implementation on the Courses of Action
The implementation of the study focuses on how the researchers will be able to
execute their recommended course of action in dealing with the issue of Fake
Booking. The implementation on the recommended actions by the researchers are as
follows:
1. GrabFood Philippines will have to make a statement regarding on the issue
of delivery scams that victimizes their delivery partner. The management
will arrange a press release to formally make an announcement toward the
clients or the public to inform what will be the response of Grab.
2. The HR of Grab will reconsider on recruiting and hiring a Cybersecurity
Team that will hold responsible on the identity and accounts of the users of
Grab Application. The Security Team will have the following duties and
responsibilities:
a. To filtrate all the existing and pre-existing accounts and eliminate or
dissolve any dummy or fake accounts that causes these delivery
scams.
b. To ensure all the registered accounts are verified.
c. To ensure that the system of application is not being deteriorated or
disturbed by any third-party hackers or scammers.
d. To track all the location and contacts of the scammers.
e. To check and monitor the deliveries to prevent any scams from
happening.
f. To give recommendations to the company in terms of improving their
application security.
TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES
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College of Liberal Arts

3. The company will now have to improve their application system specifically
the security as well as to put another policy on their Terms of Service, the
“Mandatory usage of GPS prior and later making an order.” This should be
both agreed upon the company and the stakeholders who are using the
application. The policy should be only effective on a duration from before,
during, and after the clients are making their order.
4. The application system will require for new updates, specifically on the
“Verification Account Policy” that the users and clients should read on
before using Grab. This requires for the Cybersecurity Team and the App
Developer Team to build cooperation to achieve this improved system. The
application should involve the following updates for those who prefer Cash
on Delivery Payment Method and Online Payment Method:
a. Required Legitimate ID
b. Legit Email Address
c. Cellphone Number
d. Live Selfie
e. Mandatory GPS
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College of Liberal Arts

SUMMARY, CONCLUSION, AND RECOMMENDATIONS

I. Summary
The purpose of this case study is to identify the measurements being proposed and
implemented by the management of Grab in resolving the problem of Fake
Bookings. This case study also has a purpose to offer Alternative Courses of Action
that will probably resolve the problem of GrabFood system. The stakeholders
involved- consumer, merchants, delivery riders, authorities- were also being analyzed
in order to fully criticized the situation of Grab towards the problem.
The background of the Grab is being reviewed as this can assist the researchers to
analyze what philosophies and theories stands the company. The related literatures
being mentioned and stated emphasizes the effects of delivery scams to the company,
delivery partners, as well as the authorities that is being utilized to derive the
alternative courses of actions specified in the Results and Discussion part of the
study. The researchers also derived the recommended courses of action as well as its
implementation which answers the inefficient proposed solutions by Grab.
II. Conclusion
In conclusion, Fake booking became one of the current problems of delivery
riders that the researchers believe that needed to come with a solution. It is crucial to
the management to raise awareness and become more secure to their riders to prevent
this kind of scams from happening not only to them, but also for the other company.
Additionally, the management should be responsible and liable for having this kind of
issue and problem because they are witnessing how this issue greatly affects their
GrabFood Riders negatively. Thus, as the number of scams and fake booking victims
increases, follows the decreasing population of delivery riders. The focus of the
research is making the riders more satisfied as the customers were also satisfied in
terms of securing them in fake bookings. This research looks for the effectiveness of
protecting the riders at all costs such as strengthen the online payment method,
enhance the application Terms and Policies, enable the reimbursement to those
fraudulent customers, and protecting the mental and emotional health of the delivery
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College of Liberal Arts

riders. The researchers desire to unleash to the users to be humane not just to being
human.
III. Recommendations
The recommendations listed by the researchers are for the future researchers who
aims to extend the investigation and analysis of the study. It is as follows:
1. Do a deeper research and investigation on the background of Grab.
2. To further understand the conflict of Fake Book, the future researchers should
conduct an interview or survey on the said involved stakeholders.
a. If possible, Grab Staff from Middle Management
b. Grab Delivery Partner
c. Victim Grab Delivery Partner
d. Consumers
e. Merchants
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Ayala Boulevard, corner San Marcelino St., Ermita, Manila, 1000
College of Liberal Arts

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College of Liberal Arts

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https://www.researchgate.net/publication/283644997_Growth_Strategies_in_Businesses_and
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