Grab and FairPrice launch joint subscription service
FairPrice and Grab have jointly launched a new subscription programme, Score, that offers savings for grocery shopping and transport.
Score will offer rebates in the form of additional LinkPoints and discounts on Grab rides.
Launched yesterday, the subscription is priced at $29.99 for the first year and $49.99 from the second year onwards.
Mr Seah Kian Peng, chief executive officer of FairPrice, said: "Through Score, we look to collaboratively expand our reach to better meet the needs of our community."
When subscribers shop at FairPrice supermarkets, they will get an additional 5 per cent rebate in LinkPoints for any amount spent above $100, with a cap of $5.
The points can be used at over 1,000 merchants across the island, including bookstores and petrol kiosks.
Moreover, users will still be entitled to the LinkPoints that FairPrice Plus! card members will receive.
On Grab, users who take four full-price rides will receive 20 per cent off rides for the rest of the calendar month, with a cap of $4 a ride and 30 redemptions a month.
For one day each month, users will also receive 50 per cent off all rides, capped at $6 a ride for a maximum of five redemptions a day.
The move makes most sense for Grab, said Associate Professor Nitin Pangarkar at the Department of Strategy & Policy, National University of Singapore Business School.
He said: "With Grab, they want to lock in customers by offering more types of services, where customers stay for a variety of services.
"With FairPrice, there is no downside for them to have such a collaboration. "
He calculated that subscribers will be able to recover the first-year subscription cost in LinkPoints rebates with an average of $580 spend on groceries a month.
But there could "possibly be few takers" at the $49.99 price point, he said.
FairPrice and Grab say the second-year fee is higher because they hope to rope in more partners to provide other benefits and services to members.
Mr Seah said the subscription fee "goes back to supporting the programme and to make it better".
"When you add up the benefits you get, it far outweighs the amount that you pay," he added.
Regular Grab user Alvin Lee, 32, who works in finance, said he finds the Grab perks more appealing than the FairPrice ones.
"Grab already has promotional codes," he said.
"I would possibly be more interested in this service if I had a large family and buy a lot of groceries, or if it was free."