Grab Suspends 500 Drivers, Explains Cause of Cancellations

Grab Suspends 500 Drivers, Explains Cause of Cancellations

It is a bit more complicated than you think

Following Grab PH CEO Brian Cu’s statement regarding problematic drivers, the ride-hailing app stays true to their promise by sanctioning 500 drivers due to canceled bookings. The sanctions range from warnings, suspensions lasting between three and five days subject to retraining, and to a total ban from the service.

In a report by CNN, Cu explains that they only allow drivers up to a 5% cancellation rate in order to earn incentives. Cu adds that drivers face sanctions if they incur a cancellation rate of more than 10% a week. The explanation comes in light of LTFRB’s second show cause order over Grab’s choosy drivers.

LTFRB Wants To Cut Down Number Of TNVs From 125,000 To 45,000

Now things get a bit more complicated: According to Grab, LTFRB’s suspension of Grab’s Php 2 per minute travel charge increased the number of canceled bookings. Cu explained that the low fares discourage drivers to serve commuters, leading to a higher than normal 11% overall cancellation rate, along with fewer units serving commuters.

“Drivers have to buy gas, pay the monthly amortization for the vehicle, or the daily boundary, and when traffic stalls them, it is only the Php 2 per minute that saves their income. So with the Php 2 gone, many of our drivers earn less and drive less, if at all,” Cu explains in a statement.

While Grab is complying with LTRFB’s order, Cu adds that drivers cancel bookings “especially when they know they will traverse traffic.” As of this writing, Grab filed a motion for reconsideration for their increased Php 2 charge, justifying saying the charge is legal based on DoTR’s orders from 2015.

Lawmakers say otherwise: PBA party-list Rep. Jericho Nograles thinks that drivers cancel bookings because of Grab’s system. Unlike other ride-hailing apps, Grab drivers see where a passenger’s destination is before committing. Cu justifies this system as a security feature, but they are open to removing the said features and use alternative security methods instead.

Senators Hits Grab Over “Predatory Pricing”

Grab Testing Auto-accept Feature In App

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

Latest Reviews

Best Phones in the Philippines

Best Guides

Recent Posts