Grab to reduce trip cancellations by subsidizing distant bookings

Ride-sharing company Grab Philippines is planning to subsidize passenger bookings that are kilometers away from the driver to reduce the number of trip cancellations.

The move has received an initial approval from the Land Transportation Franchising and Regulatory Board (LTFRB).

“That’s a judgement call, internal ng Grab management ‘yon. It is up to them... ” LTFRB board member Aileen Lizada said.

“The objective is to provide a safe and convenient ride sa mga mananakay, while satisfying their partners and operators. Formula nila ‘yon, then we give it to them,” Lizada noted.

Brian Cu, Grab country head, said on Tuesday the company will introduce a feature called “spot incentives”—to be applied once the booking is received by the driver.

“... So if nabigyan ng booking ang driver ng three kilometers away, the next one kilometer above two kilometers will be given a spot incentive of, let’s say, P30 for that kilometer,” Cu said.

“So “yung fare na babayaran ni rider, kunwari P200 will have an extra P30 which comes from Grab. Ang makukuha ng driver P230,” Cu noted.

The computation is based on per minute charge.

“What will happen is we will compute on a per minute basis. Ano ba dapat naging fare niya? Kung ang naging fare ni passenger ay lower than what it should have been, the difference will be shouldered by Grab as an incentive,” Cu said.

Ronald Roda, Grab 4Wheels head, said the plan is to implement spot incentives in the next two to three weeks.

Cu said the subsidy will come from Grab’s investment fund, which is sustained by investors and revenues. —VDS, GMA News