End of my GrabClub Food Pass @ $7.99 / Month; Now $9.99 / Month

I sign up the GrabClub Food Pass when they are first introducde.

The plan at S$7.99 a month which includes 30 deliveries with no minimum order.

This one no brainer, so I subscribed straight away.

From then till recently, they upgraded the plan to $9.99 for 50 deliveries but at a minimum order of $10.

There goes my food plan for 1 person meal.

For the past few months, I have been searching the app for cheap food for delivery.

Laksa at $3.70!

Nasi Lemak at $3.80!

Where to find all these with delivery included. 

But of course, I know the end is nearing because for every such order. Grab is burning money.

You do the maths lor. They charge merchant at 30%. Then give you free delivery. 

They pay the delivery riders approximately $5 per trip. 

So the calculation goes. 

Revenue: $3.70 * 30% = $1.11
FoodPass Revenue: $7.99 / 30 = $0.26
Cost: $5

Loss: $3.63

So every Laksa I order they lose $3.63

So now their minimum order increase to $10.

Let us calculate how much are they are earning or losing.

Revenue: $10 x 30% = $3
FoodPass Revenue: $9.99 / 50 = $0.20
Cost: $5

Loss: $1.80

So what is the breakeven point?
$5 / 30% = $16.67 

So roughly any order that exceeds $16.67 is their profit.

This also did not include those incentive they are throwing out.

So if include incentive leh?

Assuming a trip for them is $9, which means cost to GrabFood is $9 instead of $5.

So at 30% charge to merchant, the breakeven point is:

$9 / 30% = $30 !

You need to order more than $30 for them to breakeven. So even at the new minimum order at $10, they cannot break even.

But at least they cover back a percentage of it.

So maybe the next upgrade will be increased in minimum order to $15? Let's wait.

Now $9.99 Grab Club Food Pass

So now at $9.99 per month.

The food pass include 50 deliveries, minimum order $10.

The previous 30 deliveries I already cannot finish. Now 50 deliveries. How sia?

And now need minimum order. I cannot order my $3.70 laksa any more.

We should see for this month how this food pass can work out. If not, then no need subscribe liaos.

Of course, add some icing. They include 2 x vouchers of $5 (min order $10) and $10 (minimum order $20).

This excludes the delivery charges. So if you order during peak hours the delivery charge is $4. You only get $1 discount nia.

But this is still better than nothing.