Lower fares for commuters, but at whose expense?
Grab has always been a preferred option for commuters worried about being caught in a jam while in a taxi with a running meter. The introduction of GrabCar, GrabShare, and GrabHitch is one passengers prefer because of its upfront rates.
More recently, the ride-hailing platform introduced yet another cheaper, and quicker alternative— JustGrab, a dynamic pricing option that offers commuters a flat rate pricing.
What You See, Is What You Pay
Commutes are thrilled about the quicker service, lower fares and of course, the fact that they no longer have to watch in horror as the meter shoots up due to insane surcharges.
GrabTaxis usually show a gauged price range for the journey and Grab users who book GrabTaxis may see final charges being higher than the estimate.
Price difference for various Grab alternatives
The new service brings together GrabTaxi and GrabCar vehicles to give commuters a quicker and cheaper ride. According to Grab, JustGrab’s fares are almost always cheaper than GrabCar’s by 10 percent.
There is a fleet of 50,000 taxis and cars, with about 10,600 cabs from five companies- SMRT, Trans-Cab, Premier, Prime and HDT Singapore Taxi.
Bad News For Drivers
Yes, lower fares for commuters, that’s great.
But at whose expense?
While commuters are in favour of this new scheme, the same cannot be said for cabbies who feel the new service potentially lowers their income.
Many cab drivers also rely on the surcharges but business at night has been hit hard since Grab’s introduction of GrabCar, GrabShare, and GrabHitch— and now, especially so with JustGrab. Some drivers even wait to work after midnight to earn that extra cash.
As reported by Straits Times, an SMRT cabby, who did not want to be named, said that some JustGrab fares were “too low”. For instance, he added, a journey from Ghim Moh to Havelock Road at 7 am would fetch a fee of $8, compared with $14 going by the taximeter.
“I would prefer getting a passenger from the street,” he said. This is in contrast to the concerns of street-hailing passengers explained in our previous article.
A 53-year-old cabby, who wanted to be known only as Mr Wee, said: “A ride from VivoCity to Telok Blangah is just $5 on JustGrab. And I have to give 50 cents of that to Grab. The pricing is not right.”
For JustGrab jobs, cabbies have to pay a 10 per cent commission to Grab compared with 30 to 50 cents for company bookings.
