Grab says it set to refund its drivers any excess commission that has been levied on them upon its drivers after complaints were made about this. Some Grab drivers have protested that the ride-hailing provider has been taking more than 20% in commission from them, which is the maximum allowed by the government under new regulations for the industry, The Star reports.
The contention is about a 5% fee – on top of the usual commission – being charged on drivers who opted to manually accept a ride order. In a memo issued by the company to drivers, which was seen by the publication, refunds will be made on August 5. “To comply with regulations, we will reimburse the 5% manual-accept fee for all non-auto-accept jobs completed after July 11. We will make this reimbursement on Aug 5,” the memo stated.
Grab clarified the reason why the 5% fee was charged. “Almost 20% of the driver-partners choose to manually accept their rides. Therefore, a fee of 5% was introduced to safeguard and compensate other driver-partners each time a ride was ignored or cancelled. That is important to reduce unexpected situations and maintain the balance in supply and demand as we serve the daily commuting needs of everyone,” a spokesman told the publication.
The spokesman said that Grab will reimburse the 5% fee to its driver-partners who had previously chose to manually accept jobs through the app after July 11. “This means that all driver-partners will now be required to auto accept rides,” the spokesman added.
Under the new regulations for the ride-hailing industry that came into effect on July 12, ride-hailing operators cannot collect more than 20% from fares paid to drivers. Transport minister Anthony Loke warned operators against collecting more than the maximum allowed by disguising the cuts under different terms.
“We know they are trying to beat the system by not calling it (the extra charges) a commission, but by calling it a fee, a charge and all that. This is not allowed,” Loke said. He added that action will be taken against an operator if it violates the rules.
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Syabas YB Anthony. Now, return our GST refunds.
What does GST have to do with an automotive blog?
What does Loke have any relevance to refund of GST?
What is the relevance of your comment?
What I understand here is that 5% is being levied at manual ride hailing, so to comply with Loke instructions, Grab has banned manual hailing so now drivers can only be called via the app.
Doesn’t really solve the problem as convenience of hailing have been reduced. Better if the 5% can still be levied as a refundable deposit that will be auto reimbursed when transaction completed. Or else, that 5% goes into driver’s account. Grab can make it clear enough they aren’t profiting from this 5% or else Loke will throw a hissy fit again.
Agreed. Grab drivers and passenger shud try Ezcab and myCar. Pipu alwiz made right choice.
Both have poor coverage- tried them, gave up on them. The best is still Grab. Too bad Uber is no longer around as their reach is just as impressive.
I think you got the wrong idea, Grab charges driver 20% on auto accept and 25% for manual accept. Both must use the app, difference is on manual accept you can choose who to pick up where as auto accept you can’t. I still think the 20% cap is too high for driver.
I as Grab driver, would like to highlight some discussion points:
1) as drivers, if we are against the rules on the road, we were facing summons issued by the Authorities. Why no summons or action was taken by the relevant authorities against E=Hailing company for commission chargers above 20% as this is not a NEW regulation implemented?
2) Grab is charging 10% for taxi drivers whom are using the app for driving. But, it is unfair to set fixed 20% chargers against drivers as drivers had no choices but to accept all the rides.
Be reminded that, some of the times, drivers had no choice but choose to cancel the job due to the followings:
a) drivers at highway area, which is unable to pick up the job given,
b) drivers stop or awaiting at traffic lights junction, which is HARD to turning towards the pick up point,
c) far away pick up point,
d) many drivers are aware that many orders and fares are too low, which NO additional bonus given.
Drivers’ Cancellation Rate CANNOT hit more than 10%. This is forcing drivers to accept all jobs, as any cancellation from customers are ALSO counted into Drivers’ Cancellation Rate.
Is getting more and more tough for E=Hailing drivers to earn a better income nowadays. Is time Grab shall consider to further reduce the commission chargers as NOT all trips during PEAK Time were awarded with bonus.
A better rate of with AA Auto Accept jobs 15% chargers and Manually Accept 20% chargers should be applied.
All jobs shall awarded with BONUS during peak time as PROMISED by Grab based on the weekly drivers incentive schedule provided.
True but grab always listen to custmer plight not the driver…when we ask customer to come out frm waitng area.they stubborn..need to come inside ..while walking distance just 4 or 5steps
I feel you bro, totally agreed.
Before asking all of these, ask yourself, are you truly an honest driver to be demanding all these. Ask yourself. 90% of all ehailing are on multiple platforms and that alone is already a breach on your side. So don’t complain if the odds aren’t on your favor and just drive.
What breach? Did the platform have an agreement that says you have to only use their platform and not others? Show me if there is such an agreement. Fyi, I am on a single platform and I still think what Peter stated is legit demands. Before writing something you don’t know or understand maybe you should drive as an ehailing driver first.
Customer cancels are not included in drivers cancellation rate. I had 3 cancels yesterday. Two of them, seconds after I AA. Maybe they don’t like my profile pic, I was too far and they don’t want to wait, or was looking for a lady driver. Who knows. The last only cancel after I was halfway to pickup point. The important part is, my AR is still 100% and CR 0% right now.
Totally agreed.. And for those who are on Green Rental (Rent from Grab) shld be on 10% AA & 20% Manual, as we pay rm50 each day as rental..
Earllier batch of driver been charge 20% .and it nothing to do with manual or Auto Accept.
That’s the trouble with Monopoly. The company simply make rules, take it or leave it. Very naughty of Grab.
Why wasn’t there any objection from MyCC when Grab wanted to buy over Uber? Whereas MyCC fined AA/MAS collaboration.
what Monopoly?
You do know that Grab has the monopoly on ride hailing in this country after buying Uber, right?
Seems that way but I don’t think so as they do not have a direct single competitor but many multiple small ones instead and that is why it seems like a monopoly.
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20℅ of driver that still choose manual acceptance may be because they are a part time driver. They dont have enough time to make a long distance trip and also they might not be not interested to fulfill the grabpay customer. They need cash on the spot to buy a petrol to keep their car moving.