Grab Revises Fare Structure, Rides During Peak Hours To Cost More

Grab Malaysia announced fare and incentive changes in an effort to compensate drivers for time spent stuck in traffic during peak hours. In the Klang Valley, the fare per minute has been raised from 20 to 43 sen, while the fare per kilometre has been reduced from 70 to 25 sen, effective today, January 16.

The base and minimum rates are still RM2 and RM5, respectively. According to the company, the fares were revised based on feedback from its drivers. "We hear you, and we will be revising the fare structure so that fares are based more on the time taken to complete the ride and less on the distance of the ride," it said in a statement.

The fare will still be "calculated upfront based on system-estimated distance and system-estimated trip time". The fare calculation is as follows: base fare + (trip distance x fare per kilometre) + (trip duration x fare per minute). Under the new fare structure, a 10 km ride that takes 30 minutes will cost RM18 instead of RM15, while a 10 km ride that takes only 15 minutes will cost RM11 instead of RM12.

Peak hours for Grab are 7 a.m. to 9 a.m. and 5 p.m. to 8 p.m. The fare adjustment disappointed Mohd Azril Ahmat, vice president of the Grab Drivers Malaysia Association (GDMA), because drivers prefer to work during non-peak hours. "Based on the feedback I’ve gotten from some drivers today, they are expecting at least a 30% reduction in earnings.

"This is because they reduced the earnings based on distance, which is down to just 25 sen. My concern now is that other ride-hailing companies will follow the same fee structure," he said.