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Sunday, December 8, 2019

What hath grab and UBER done to the car sales - why buy a car when you can grab

Looking forward to the future of business

Rizal Philipppines
December 2019

Image result for grab car

Plenty.  It means lower sales.  Now consumers see less desire to buy  new cars.  They can get their rides,  new cars pa, safe and convenient via apps.  With stringent rules on parking areas, garage before you can buy, strict anti no parking laws, one is less likely to buy a new car.  Compound that with the traffic, and increasing cost of ownership:   service cost at casa, insurance, accidents, road rage abusive jeepney drivers, traffic enforcers,.  Why buy a car when you can Grab?

Toyota has partnered with Grab at least to get a share of the market for initial car sales

This business model is a viable model as:

1.  The buyer earns much, Grab just gets a commission only
2.  The driver behavior is controlled
3.  There is less chance of abusive drivers (the drivers will not earn if they misbehave)
4.   Less expense on the part of the operator since the going around is minimized;  there are always ready users.
5.  The model is self liquidating;  the revenue of owner is enough to pay for monthly amortization of the unit that is under installment (that is why the FX and UV transport became popular)

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