Earlier this week, news broke about popular ride-hailing application, Grab, introducing a cancellation fee on 25 March, 2019 in Malaysia (Klang Valley) and Singapore with other countries to follow suit. Here’s everything you need to know about the cancellation fee.
1 . Only 0.5% of users will be affected
The penalty that Grab is introducing will not affect the majority of users on the platform. In fact, Grab says that only 0.5% of users will be affected by the new penalty. These users are those who have abused the platform by intentionally cancelling or not showing up which has resulted in loss of income for Grab drivers.
2. It is a LATE cancellation fee
The penalty is for late cancellations. Grab has clarified that users who cancel within a five (5) minute window will not be charged. The penalty is only incurred once 5 minutes has passed and the driver has made significant progress to the pick up location. This is to compensate the driver for his/her time and petrol spent.
However, if the system detects that the driver is moving away from the pick up point or hasn’t moved, the cancellation will not be penalised.
3. Payment is tiered according to Service
The late penalty is not incurred according to the timing. Instead, the penalty is tiered according to the type of service that is requested.
|Grab Service||Penalty (RM)|
|GrabCar, JustGrab, JustGrab (Airport), GrabShare, GrabTaxi (Metered & Executive), GrabCar (Mandarin), GrabCar Plus||3.00|
|GrabCar (6-Seater), JustGrab (6-Seater), JustGrab (10-Seater)||4.00|
|GrabCar (Premium), GrabCar Luxe (Vellfire for Airport)||5.00|
4. Grab is also introducing a “No Show Penalty”
The same penalties are also applicable if you do not show up for the booking. Grab tells us that they have defined a “No Show” booking as a user who does not respond to messages in the Grab application or other forms of communications by the driver and doesn’t turn up after the determined waiting time. This is displayed in app as 3 minutes for GrabShare and 5-minutes for their other services. Once this time has elapsed and the driver cancels, you will be charged according to the service tier.
5. Grab does not profit from the penalty
Users will be able to pay the penalty through all the payment methods in the app including Cash. When the cash payment option is selected, the user will pay the amount to the next Grab that is requested. This means that the user will be paying the penalty IN ADDITION to the booking fee to the driver.
Grab doesn’t collect any portion of the cancellation penalty. It remits the complete amount to the drivers. In cases of cash payment, Grab fronts the amount to the driver affected.
6. You can appeal the Penalty
Users have the option to appeal the penalty should they feel that it was incurred unjustly. All users will need to do is report it to the in-app support and the amount will be refunded. In the case of users opting to pay using cash, they will be given a Grab voucher corresponding to the amount refunded.
7. The first Cancellation is Waived
Grab says that the intention of the penalty is to effect a positive change in its users that will benefit both the drivers and the passengers. In that spirit, Grab has informed us that they will be waiving the first penalty incurred.