BizTueday: How to make business out of Uber and Grab in Thailand

One of my colleagues and I had a boiling discussion about Lyft expansion in South East Asia the other day.

She said, “They’ll do anything to get the customers even giving out free rides” and I responded, “Don’t you think they’re giving out too much. As a customer, I’ll still use their service even if there is not free stuff.”

That was when I came up with a hack that could work for earning free credits from Lyft, UBER and Grab.

Important note: This laundry list of idea would only work in Thailand and in other similar market conditions. Lyft has not yet been launched in Thailand.

Currently the 3 sharing economy companies — let’s just call them LUG(Lyft, Uber, Grab) — verify users through unique phone numbers. Originally this was done through confirming emails, but they later changed when users started exploting their free ride scheme.

In this business plan, I will show you how you can invest as low as 50sgd* and get 758% or 392.47sgd (10,204.25thb) in return.

*(1sgd = 26thb)

Capital costs: What you will need

This retailing price is competive with the market as the average price is 49 bath per sim card.

Product: What you will sell

Physical product: A packet consisting of a paper clip, a sim card and a paper explaining instructions on how to get a free ride.

In the process of developing your product, you will need to register for an account in one of the LUG apps and convert your personal promo code to a commercially friendly string.

Your personal promo code is the code which you share with your friends when they sign up and get their first ride. In return, you will earn around 100thb or 10sgd free credits (based on Uber).

So for example, if your personal promo code is an alien looking string like “XB89EW”, you need to convert it to a finished product like “FREE100THB”

The instruction which comes with the sim card should incorporate the generated promo code and how to register for their first ride.

Distribution channels: Where you will sell

In Thailand, weak law enforcement on counterfeit products and retailing distribution give ways to become a popular hub for margin-killing phones and phone accessories market. Local vendors will sell anything that they can have their hands on and generally accept any product placements if the commission fee is reasonable.

There are also streetside vendors who can also serve your customers at the perfect timing — when they’re just looking for a taxi!

End users: Who will buy your product

Those who want to spend a bang for their buck — paying 35thb for 100thb worth of free ride. (If they choose to get on a taxi, the minimum fare starts at 35 bath anyway.)

What do you think of this idea? Share your comments below or go to Thailand and buy 85 sim cards to kickstart this business.

Every Tuesday I publish a disruptive business idea that risks myself being banned from the companies.