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Grab imposes P50 cancellation, no-show fee



By Alexandria San Juan

Ride-sharing firm Grab Philippines now imposes a P50-fine for passengers, who will cancel their bookings five minutes after getting a ride, and to those who will not show up at their pick-up points, in a bid to intensify its campaign for more responsible ride-hailing.

A Grab employee uses the app to book a cab for passengers at the Ninoy Aquino International Airport (NAIA). (REUTERS/Romeo Ranoco / MANILA BULLETIN)

A Grab employee uses the app to book a cab for passengers at the Ninoy Aquino International Airport (NAIA).

In its updated ride policy announced on Monday, Grab said penalties and fines will now be charged to both drivers and passengers to curb unreasonable cancellations.

“Grab is mindful that cancellations are frustrating for both the passengers and our drivers. At the same time, we are cognizant of the fact that sometimes, cancellations are necessary during
special situations,” Grab Philippines President Brian Cu said.

According to Cu, unreasonable cancellation behaviour is one of the core problems that brings down the quality of transport network vehicle services (TNVS) including forcing passengers to cancel the booking without proper reason, and being selective of passenger destination for drivers, and excessive cancellations (two times per hour, three instances a day, and or a total of 5 cancels per week) for passengers.

With this, the transport network company (TNC) has put in place the following initiatives and policies to discourage cancellations on both sides:

For drivers:
1. Completion rate – drivers are penalized if they go below the required completion rate. It is computed based on completed bookings, cancellation rates and ignored jobs.
2. Driver Timeout – if a driver excessively ignores or cancels booking requests, they are locked out of the platform for a temporary period of time.
3. Ratings and Complaints Analysis – drivers with passenger complaints and low star ratings are also flagged. Grab gives out warnings, and suspends or eventually bans drivers over repeat offenses.
4. 5-Star Driver Tipping Feature – for drivers who go above and beyond, a new tipping feature allowing passengers to reward the drivers with 5-star rating has been rolled out.

For passengers:
1. 30 GrabRewards Points – when a driver cancels on a ride, the passenger automatically gets 30 GrabRewards points, which he or she can use to redeem items or vouchers in the GrabRewards catalog.
2. Passenger Timeout – after excessive cancellations, the passenger’s account will temporarily be suspended for 24 hours.
3. Cancellation Fees – P50 fee will apply to passengers who cancel the ride after 5 minutes of getting assigned a driver.
4. No-show Fees – P50 fee will apply if a passenger doesn’t show up at the pick-up point within 5 minutes for GrabCar and 3 minutes for GrabShare upon the driver’s arrival.

The cancellation fees obtained during the said situations will go directly to the driver to compensate them for fuel and effort they have already spent travelling to the passenger’s pick-up point, Grab said

“Our intention in implementing this new policy is to create a better ride-hailing
ecosystem, where both passengers and drivers practice the responsible use of the Grab platform,” Cu explained.

To also protect passengers, Grab has put a “robust system” to avoid charges in some situations such as if the driver is not moving towards the pick-up point or going the wrong direction.

No fees will also be charged if the driver takes 15 minutes longer than the first estimated time of arrival and if the driver indicates that he has arrived when he or she has not.

The TNC also assured that they will refund any fees that were “wrongly charged” within 48 hours, when reported through its in-app Help Centre.

Grab said it already notified the Land Transportation and Franchising and Regulatory Board (LTFRB) on the new cancellation policy.

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