Grab users to pay $3 penalty for being more than 3 minutes late for ride from July 18

SINGAPORE - Commuters will have a shorter grace period before they have to pay a $3 penalty for being late for their pickup, with ride-hailing firm Grab cutting the wait time from five to three minutes.

This fee will be charged for every block of three minutes the driver has to wait, Grab Singapore said in a notification sent to its customers and drivers on Monday (July 11).

Currently, Grab charges a $3 penalty for every five minutes that a customer makes a driver wait after the grace period. 

Commuters pay this amount on top of the ride charges.

Separately, Grab has also cut the cancellation period for a ride. After a booking has been accepted, commuters have a grace period of three minutes to cancel the ride, down from the previous five minutes. 

The cancellation fee remains at $4. Both changes will kick in next Monday (July 18).

They will apply to the JustGrab, GrabCar, GrabCar Plus, GrabCar Premium, GrabPet and GrabFamily services but will not apply to GrabAssist, which cater to passengers with mobility issues.

In response to queries from The Straits Times, Grab said the changes were introduced to help drivers reduce fuel wastage caused by idling engines while waiting. 

It added that this is particularly upsetting for drivers, as fuel prices have soared in recent months.

ST understands that the penalty for making a driver wait will go directly to the driver to compensate him for the petrol costs. 

Grab said the changes will affect a small number of customers, as 94 per cent of passengers arrive at their pickup points within three minutes of their drivers arriving.

To make sure passengers are not unfairly charged for being late, Grab said it will refine the app so that drivers can indicate that they have arrived only when they are at the pickup point or very close to it. 

Grab said: “Ultimately, we want to ensure that the ride experience is always a fair and pleasant one for both passengers and driver-partners.”

Gojek, Grab’s main ride-sharing rival in Singapore, has confirmed with ST that it will continue to omit waiting fees for customers. 

However, customers will still have to pay a $4 cancellation fee if they cancel the ride after the driver arrives. 

Customers will also have to pay $4 if drivers cancel on riders after five minutes of waiting at the pickup point.

Tada, another ride-hailing app, has also said that it will not be adjusting its policies to match Grab’s. 

It does not charge for cancellations but has a wait charge of $2.50 for every five-minute block after the  pick-up time.

Ms Lois Teo, 34, a driver for Grab, Gojek and Ryde, said that most of her customers are punctual. 

If customers inform her that they will be late, she will not indicate on the app that she has arrived.

“Ultimately, it is just about being considerate to each other,” Ms Teo added.

However, some Grab customers, like Mr Oo Gin Lee, 52, have questioned the logic of shortening the grace period to help drivers with fuel costs. 

The public relations consultant said: “How much more fuel can a Grab driver save in two extra minutes? I don’t see how this policy benefits consumers at all.” 

He added: “There are many valid reasons why a customer might be late; Grab should make it mandatory for drivers to call riders before they are allowed to charge a late fee or to cancel the ride to protect the consumer.” 

Grab customer Rachel Tan, 35, said that customers lose out as well when drivers are late or cancel rides. 

Ms Tan, a special needs educator, said: “I had three Grab drivers cancel on me in succession once, which led to me being late for an important appointment.”

She added that customers should similarly be fairly compensated.

According to Grab’s website, it presently charges passengers a waiting fee when they are late but does not charge its drivers for arriving late.

The website said: “The estimated time of arrival of the driver is determined based on road conditions at a specific time. 

“However, such conditions may change quickly that cause our drivers to reach you slightly later than the displayed time.”

The waiting fee penalty for customers has been around since December 2016.