Grab introducing a $1.40 (USD) cancellation fees

Grab;

Today, Grab introduced cancellation fees as part of our ongoing effort to make driving and riding with us a better experience.

Cancellations made by drivers or passengers cause huge inconveniences to one another – loss of earnings for drivers already en-route to pick up a passenger and loss of trust for passengers waiting for their ride to arrive.

By lowering cancellation rates, we’d be able to match drivers more efficiently to passengers who really need a ride.

Right now, we measure drivers’ performance based on their cancellation rates, among other factors. Drivers with low cancellation rates enjoy higher incentives and perks, which makes them think twice before cancelling.

Today, a passenger cancellation fee of $2 will kick in. We know that there are good reasons for people to cancel their rides sometimes. So for a start, the fee will be levied only after more than 10 cancellations in a week. Once the threshold is reached, $2 will be charged to the passenger’s GrabPay account. Non-GrabPay passengers will have to enable GrabPay before making further bookings.

Over time, we will review and adjust our cancellation threshold accordingly. Our aim is to encourage people to make a booking and stick with it. Be assured that our app will always give ample notice in the form of warning notifications before we deduct the fee.

We hope this initiative creates a fairer platform for drivers and passengers, and that all of us will think twice before cancelling a booking.

From their FAQs, the cancellation fee only applies in Singapore but this may roll out to other market where Grab is available.