Cancelled bookings inconvenience both drivers and passengers. We’re working to make things better.
Today, Grab introduced cancellation fees as part of our ongoing effort to make driving and riding with us a better experience.
Cancellations made by drivers or passengers cause huge inconveniences to one another – loss of earnings for drivers already en-route to pick up a passenger and loss of trust for passengers waiting for their ride to arrive.
By lowering cancellation rates, we’d be able to match drivers more efficiently to passengers who really need a ride.
Right now, we measure drivers’ performance based on their cancellation rates, among other factors. Drivers with low cancellation rates enjoy higher incentives and perks, which makes them think twice before cancelling.
Today, a passenger cancellation fee of $2 will kick in. We know that there are good reasons for people to cancel their rides sometimes. So for a start, the fee will be levied only after more than 10 cancellations in a week. Once the threshold is reached, $2 will be charged to the passenger’s GrabPay account. Non-GrabPay passengers will have to enable GrabPay before making further bookings.
Over time, we will review and adjust our cancellation threshold accordingly. Our aim is to encourage people to make a booking and stick with it. Be assured that our app will always give ample notice in the form of warning notifications before we deduct the fee.
We hope this initiative creates a fairer platform for drivers and passengers, and that all of us will think twice before cancelling a booking.
Frequently asked questions
Why do I have to add GrabPay as a payment option for cancellations?
It helps make the cancellation fee payment more seamless. Using GrabPay, passengers will also get an e-receipt with the fee reflected, ensuring transparency.
Are you profiting from the cancellation fees?
Absolutely not, this is not a profit-driven initiative. This is to create a fair marketplace for our drivers and passengers. It also lets us accurately predict demand for drivers so we can allocate rides more efficiently.
Will I be charged a cancellation fee if the wait time for the driver is too long?
We understand there are valid reasons for cancellation – plans (and the weather!) can change rapidly in Singapore. This is why our fee will not apply to every single cancellation, but only after the cancellation threshold has been exceeded.