In Sectors

The rise of in-car retail and entertainment

Today, consumers are pushed to purchase at every step of their day.

SEE ALSO: Uber cars to become mobile convenience stores

From advertisement in the streets to vending machines, retailers never stop in offering consumers the opportunity to buy something.

Time is money and is one not to be wasted thus why businesses are striving to grab all possible opportunities to push their products to consumers and engage them into their buying decision process.

Recently, ride-hailing firms realized they could further monetize their car-ride.

Go-Jek and Grab – major players in the industry – now offer customers the chance to buy goods and experience in-car shopping.

With Go-Jek acquisition of the Indonesian adtech startup Promogo, the ride-hailing company introduces Go-Vend, its in-car retail service “where customers can buy daily necessities or receive free samples from leading brands inside a Go-Car vehicle,” said Promogo CEO and founder Andrew Tanyono.

Together, they will provide a service described to be “the equal of an in-flight entertainment services” in cars: Passengers will be able to watch movies or shows inside the cars, taste product samples, charge their phone batteries, use Wi-Fi, or pick up brochures.

SEE ALSO: Indonesian Go-Jek closes in on new $1.2 billion round

A little bit further in the region, Grab started its in-car refreshment and retail service in Singapore, partnering with start-up Cargo on Grab&Go.

While they’re in the car, Grab passengers will be able to buy various snacks and other consumer goods from a Cargo display box. They can use their smartphone to order from Cargo’s online menu, with the additional cost added to their final fare.

In addition to paid-for items, Grab&Go has partnered with several brands to offer a range of complimentary samples to passengers. These include Kellogg’s Nutty Chocolate cereal bars, as well as skincare products from Biore UV and Novu, and haircare products from Lux Luminique.

The idea is that free samples will encourage passengers to pay for items on future rides. Cargo claims that about 30 percent of its sales come from passengers that have initially claimed a free item.

Grab’s driver-partners will earn money each time a passenger uses Grab&Go – even including free samples. Grab said in its statement that driver-partners will be able earn between US$56 and US$187 per month in additional income.

Grab has been keenly exploring additional revenue streams for its driver-partners. In-car retail, as offered by Grab&Go, is just one such opportunity.

SEE ALSO: GRAB and UBER fighting to dominate the ridesharing in South East Asia

Another potential revenue generator is advertising space – both in the interiors and exteriors of cars. One example is Grab’s recent partnership with Singaporean startup Display Science. It provides digital screens that are installed on the rear of seat headrests, broadcasting ads and other content for passengers in the backseat.

While these opportunities to make some extra money can encourage driver-partners to stay on board, they could also lead to more revenue and more users for Grab itself. In a sense, users of Grab&Go can already use the company’s GrabPay wallet for their in-car purchases, since the bill is tacked to the cost of their ride. But there may be potential for Grab to further integrate GrabPay, such as enabling passengers watch in-car ads and buy the advertised products immediately, or allowing them to do online shopping through in-car screens.

(Source: Tech in Asia)

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