Grab Higher Fare Notification

End the Wait in Getting Grab Rides

Grab Higher Fare NotificationI always read posts on social media about having difficulty getting Grab rides, waiting to get a booking, plus higher fare. Based on my experience, it’s really difficulty getting a ride, especially during rush hour. I have to specifically mention rush hour because prior to this, I’m still able to book, just at a higher yet acceptable rate. And I do agree that the fare is higher than the usual. I also noticed that the app almost always say that fare is higher because of the demand.
As far as i can remember, that notification existed ever since the merge between Grab and Uber happened. At the start, I understand that there’s definitely a sudden demand because Uber no longer exists and the integration of Uber system and their drivers will have to happen. But at this point in time, the transition should have been finished already and people will get to enjoy faster booking because of the additional cars in the system.
uberIt still feels like nothing was added to Grab’s fleet of cars despite the merge. And with the absence of Uber, there’s the outcry for more. I heard that some TNVS companies have joined the fray to serve commuters. But I have yet to feel them, and I also think people would rather use Grab than other provider because of the trust.
This means that we have a TNVS supply crisis in Metro Manila. But how did we get there? Apparently, the supply of TNVS cars in Metro Manila has been compromised because of regulatory restrictions.
  1. In January 2018, the LTFRB ordered a 45,000 common supply base of TNVS cars, less than a third of the 125k currently in operation at that time.
  2. In Feb 2018, the cap was raised to 65,000 common base. In parallel, the LTFRB, with the support of an independent party and data from Uber and Grab, created a list of 55k vehicles, which is currently recognized as the official masterlist for processing of CPCs and PAs.
  3. Since then, only 42,000 active vehicles are now left in the system (i.e. 13k gap from vehicles in Masterlist); out of this, 35,000 vehicles (i.e. ~83%) are active daily
  4. When Uber pulled out of the Philippines this March 2018, it is estimated that there were around ~50k active vehicles at that time; out of which, around 43k vehicles were active daily (24k from Grab and 19k from Uber)LTFRB_Seal
  5. It was discovered during the transition that ~6,000 vehicles from Uber were not part of the masterlist and by LTFRB decision, were not allowed to transfer to Grab nor to other TNCs
  6. Furthermore, an additional 2,000 vehicles (and their owners) chose to not join Grab after the Uber pull-out
  7. As a result of all of this, the daily active base has gone down to ~35,000 drivers (24k from Grab and 11k from Uber)
  8. Due to misinformed allegations by a lawmaker, the LTFRB was compelled to suspend Grab’s P2 per minute travel time charge last April 2018; this decision to suspend the charge by the LFTRB is heavy-handed and did not consider the welfare of the TNVS drivers
  9. It must be noted that the P2 per minute travel time charge has been applied by Grab since July 2017 and by Uber since their inception, months before the Uber pull-out; as such, the time component of the fare was not introduced due to the Uber pull-out
    – LTFRB had ample time and opportunity to act upon this time component as this fare component was presented to the LTFRB in a working group meeting in July 2017
    -Low income has affected driver behavior because they are left with no option but to make decisions that enables them to make ends meet.
  10. Grab and the other TNCs have been asking LTFRB to open the remaining 10k slots to increase the supply of cars but LTFRB has opted to not take immediate action. Moreso, LTFRB also does not have a structural mechanism to replace inactive and dormant drivers in the current masterlist.
  11. There are only 35k drivers available to serve 600k bookings a day, and worse on rainy days as bookings reach 850k.

The regulations resulted to having the lowest vehicle allocation rate for the Philippines. Apparently, Grab Philippines’ ability to allocate cars is down to 40%, the lowest in Southeast Asia. This means Grab is only able to allocate rides to 4 out of 10 passengers.

This is sad because the Philippines was one of the first movers in adopting ride-sharing in Asia. In fact, we are the first country to regulate ride-hailing in Asia last 2015 and I’m so proud and excited. I was present when GrabTaxi was introduced, and was also the first to experience GrabCar when it was launched.

GrabCar Launch at BGCBecause of the instances mentioned above, we, in Metro Manila face a serious supply crisis. That’s just sad. More passengers are waiting for longer hours and worse, getting stranded on the road because they could not get a ride. I remember having to stay for hours at a coffee shop because I can’t get a ride past 9pm. I was able to book at 11pm, that’s crazy!

Recently, Grab Philippines has been calling out to “End the Wait.” And I hope we can all call out for the same. I don’t want to keep waiting in getting grab rides. We’re already suffering of having to wait on the road because of the traffic situation in the metro. That’s enough already. We shouldn’t be suffering and having to wait for a ride just because of such regulations that’s not helping the Filipino commuters.

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