Fairer compensation for peak hours

We’re changing the fare and incentive structure to accommodate the longer times our driver-partners spend in traffic 

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Driving during rush hour can be frustrating, especially in busy areas. Traffic has increased and you can end up spending hours on the same two kilometer stretch.

Grab is taking important steps to ensure that you’re better compensated for your time on the road. You’ll see fairer compensation during peak hours, and you can rest assured that the entirety of your trip, from pickup to dropoff, will be worthwhile.

3 Steps to Better Peak Hour Compensation

  1. Higher per minute fares
  2. Far Pickup Bonus
  3. Hourly Cashback

With these changes, your time in traffic will be more fairly compensated. These changes will come into effect on 16 January 2023.

Click the tabs below to find out more.

Driver-partners have complained that when traffic is bad, fares often do not compensate them sufficiently for time spent in a jam. We hear you, and we will be revising the fare structure so that fares are based more on the time taken to complete the ride and less on the distance of the ride.

Average fares will remain the same. For most trips, you will see the exact same fare as before or just a minor increase or decrease.

Please note that we need to balance the higher fare per minute with a lower fare per km as maintaining the existing fare per km will result in a significant increase in fare levels, causing a drop in demand from passengers.

Note: Fares are calculated upfront based on system estimated distance and system estimated trip time.

We will be rolling out a new incentive, Far Pickup Bonus, for all transport services. This will replace the current Time Booster and Cashback Bonus incentives.

WHAT IT IS

  1. You will receive a compensation of at least 15 sen for each minute of pickup after 5 minutes. This will apply to all Transport services.
  2. A higher rate is applicable during peak hours (please refer to your incentive table this Sunday for more details).

WHY

We have heard your feedback that Time Booster compensation during far pickups can be unsatisfactory. Time Boosters top up the difference between your fare and the guaranteed amount, so there is no compensation whenever the fare is high (e.g. when it is surging).

The new Far Pickup Bonus will be based on your pickup time regardless of your fare, providing a more consistent compensation.

EXAMPLE

💡 IMPORTANT

  1. The amount shown is calculated upfront based on system estimated pickup time and is not subject to change during or after the trip.
  2. The Far Pickup Bonus will appear as a bonus on the in-transit screen of each ride, where applicable.
  3. The payout will be made into your cash wallet as soon as the ride is completed.
  4. Taxi driver-partners are not eligible for this incentive.

We will be rolling out a second new incentive, Hourly Cashback, for all transport services. This will also replace the current Time Booster and Cashback Bonus incentives.

WHAT IT IS

  1. You will receive cashback on Transport rides during peak hours.
  2. What’s more, the more rides you complete in previous weeks, the higher the cashback you’ll receive based on a multiplier!

Your multiplier will be based on the number of rides you completed in the previous 4 weeks (12 Dec 2022 – 8 Jan 2023). Please refer to the incentive message every Sunday in your Grab Driver app for necessary rides to achieve and your multiplier details.

Below is an example of Klang Valley calculations:

Please refer to the incentive message every Sunday in your Grab Driver app for your tier and multiplier details.

Here’s an example of the Hourly Cashback table. Please refer to the incentive message every Sunday in your Grab Driver app for your tier and multiplier details:

An example cashback calculation in Klang Valley:

💡 IMPORTANT

  1. The payout will be made into your cash wallet on the following business day.
  2. Your Hourly Cashback multiplier for each week will be based on the number of rides you complete in the previous 4 weeks on a rolling basis.
  3. MyDestination rides are not eligible for cashback. However, they will count towards your Hourly Cashback Multiplier tier
    Taxi driver-partners are not eligible for this incentive.
  4. The hourly cashback will be visible in the Incentive section of the app:

FAQ

Click on each city to see the fare structures:

Please note that we are reducing the fare per km while increasing the fare per minute so that overall fare levels remain roughly unchanged.

Here is an example of how fares for trips with the same distance but different speeds will change in Penang:

a. Higher fares during peak hours in busy areas where traffic congestion is heavy. Here’s an example of a trip with a slow average speed of 20 kmh:

b. Lower fares for trips that take faster to complete, such as trips on clear highways. Here’s an example of a trip with the same 10km distance but a faster average speed of 40 kmh:

Note: Taxi driver-partners are not eligible for the above incentives

Our estimates of trip duration have improved considerably over time, with real time traffic signals.

We believe pricing your fares by time is still better than pricing it by distance, which does not vary much even in the worst congestion.

The Far Pickup Bonus incentive will be available when you drive in another city, but it will be subject to the Far Pickup Bonus incentive fares of that city. The Hourly Cashback incentive is only applicable to rides in your home city.