Dear passengers and drivers,
I know there’s been a lot of excitement around Monday’s announcement of Grab and Uber. With so many stories and analyses out there, it’s inevitable there will be some misinformation and myths. Let me address the myths:
Myth #1: Grab is going to change its fare structure and increase fares.
No, we will not be changing Grab’s fare structure.
For fixed fare services such as JustGrab, fares will continue to be calculated based on a base distance, with a dynamic surcharge that will be applied based on factors including: 1) demand and supply, 2) traffic conditions and 3) estimated time taken for the journey. If you prefer, you can also choose metered fares by booking GrabTaxi.
Grab remains committed to our mission of providing safe, convenient and affordable transport for everyone, and this will not change. We know pricing is a huge concern for passengers, so we have this documented under a specific FAQ on our website.
Myth #2: There is no more competition. It’s bad for passengers and drivers.
Competition exists. This week, two companies have already come out to say that they are going to launch their ride-hailing apps in Singapore and elsewhere in the region. And that’s just in ride-hailing. Passengers continue to have many other transport choices. They can book taxis via taxi apps, take street-hail taxis, car-pool, take public trains and buses, anything.
More importantly, it’s never just about competition. We have a bigger vision for how we can build a more efficient transport system to serve you better. We offer more transport options, at different price-points, to suit different needs. For passengers, our low-cost options such as GrabCycle and GrabShuttle Plus can better serve short commutes. For drivers, this means you can receive longer distance jobs with higher fares. Today, one in five taxi and car rides in Singapore are short trips i.e. 3 km and under. By replacing short taxi and car rides with greener, cheaper options like shuttle and cycle, we are also helping to reduce congestion and pollution.
Myth #3: The incomes of existing Grab drivers will be hit.
No. We are committed to ensuring that your income on the Grab platform is not affected.
To make sure that your “online hours” are well-spent, we’re constantly making tech smarter to get you more bookings that are closer to you. Income is a combination of revenue from trip fares and incentives, minus costs. We are helping to reduce your operating costs by finding attractive deals in fuel, rental and insurance. Lower costs mean more income for you and your family.
You may think that more new drivers on our platform will result in fewer bookings for you. Based on our projections, there are more than enough passenger bookings for all drivers. Remember there will also be more Uber passengers looking for rides on our platform.
That’s not all. All new and current driver-partners are automatically enrolled into our Better 365 programme. Better 365 offers greater support and tools for you and your family. This includes special GrabBenefits to reduce running costs, tools to help you better keep track of your earnings, and even education scholarships for your children.
Myth #4: Uber drivers who have previously been banned on Grab platform will no longer be accepted.
Uber drivers who were banned by Grab will be allowed back on our platform after a careful review process, and on a case-by-case basis. This is a delicate situation. On one hand, we want to help ALL interested driver-partners earn an income through our platform. On the other hand, we absolutely CANNOT have unsafe drivers on our platform that could potentially pose harm to our passengers. And this works both ways.
All driver-partners will be given a chance to re-join Grab other than those who have previously displayed serious behavioural issues such as harassment and violence. And this is really because we take your safety as our #1 priority.
We’re here today because of you.
Having started Grab Singapore office in our little Midview City storeroom, I am amazed and so thankful for where we are today. Over the past four years, we’ve spent every day trying to make transport safer, more convenient and more affordable for you.
There’s still so much more we can do, from improving our user experience, to our driver service and all other areas of how you interact with Grab. We need to earn your trust, today, tomorrow and every day. We will keep working to serve you better.
Lim Kell Jay
Head of Grab Singapore