LYKA Bartolay, 31, is thinking of lessening her Grab rides per week after learning that the ride-hailing service is implementing a P2 per minute travel charge.
Bartolay, who is a private-sector employee, said she used to ride six to four times a week paying at least P200 per ride from her office to her house. But she recently observed a 30-percent increase in her Grab ride fare.
“With this per minute travel charge, I might consider reducing the frequency of riding Grab from six to twice a week, depending on the necessity and maximize the use of public transportation. It may cause an inconvenience a bit, but I have no choice,” she said.
Since Friday, Grab Philippines has been enforcing a P2 per minute travel time fare component.
This is in accordance with Memorandum Circular 2018-019 released by the Land Transportation Franchising and Regulatory Board (LTFRB), which allows transportation network companies (TNCs) like Grab to impose the per minute charge.
In a statement, Grab Philippines hopes that this will encourage its driver-partners to go back online and continue bringing more passengers home, especially this Christmas season.
To help passengers cope with the adjustment of their daily transportation budget, Grab has likewise announced that it will “temporarily lower its surge pricing to 1.6x instead of 2x.”
“We are hopeful that the waiting time and booking experience will improve as we get more drivers back into the platform to serve you,” said Grab.
Not a win-win situation
The worsening traffic congestion, high cost of fuel and other expenses, such as car maintenance and amortization, have forced Grab drivers to go offline. Grab said this has resulted in fewer available Grab rides, particularly in Metro Manila.
But frequent Grab rider Paulito Isanza said the P2 per minute travel charge doesn’t reflect a win-win situation, especially in times when prices of goods are increasing.
He said he might consider taking a taxi over Grab because of this per minute charge.
“Although, they will lower the surge rates, this will not compensate for the increase on the P2 per minute charge. Surge rates apply only during peak hours and if it’s raining, that’s it. How about commuting on days where there is no traffic or when the surge rate is not applicable? I do not like this change and it’s not a win-win situation to the riders,” said Isanza.
But for Grab drivers, the P2 per minute charge is a welcome development, saying this will boost their take-home pay amid the high fuel cost and traffic congestion.
A Grab driver who refused to be named said he is happy with the LTFRB’s decision, as this will improve his income and this will also encourage fellow Grab drivers to reactivate.
“Sa una alkanse kay tungod sa trapik, pero karon mas arang-arang na. Lipay kaayo mi (Before, we felt we didn’t earn enough because of the traffic. This will really help. We’re so happy) ,” he said, adding that he is confident commuters will continue to patronize them.
Special service
“People will still ride with Grab because of its service that really picks them up where they are,” he noted, adding that the P2 per minute charge will also reduce the cancellation rate of drivers.
To ensure transparency, Grab said trip receipts will be updated over the next few days to reflect an accurate breakdown of fares, inclusive of the time component.
Currently, Grab said its fare structure is one of the lowest among other TNCs and still cheaper compared to the newly calibrated taxi fare.
“We hope that the reinstatement of the P2 per minute travel time component across all TNCs will be the first step in standardizing TNVS (transport network vehicle service) fares. We will continue to work closely with our regulators and policy makers to ensure transparency in the ride-sharing industry,” the ride-hailing service said.