The main reason for Grab’s fare spike is a huge increase in passenger demand and a shortage of drivers!
According to a message sent by Grab, the number of existing Grab drivers has been reduced by about 70% compared to the number of drivers before the outbreak, making the number of Grab drivers even more stretched in the face of increased passenger demand.
Grab said that it has always used a variable pricing model, meaning that when passenger demand increases dramatically, fares will be relatively high. This pricing model is designed to encourage drivers to travel to popular locations to pick up passengers.
The government has lifted all restrictions on vaccination since April, which has led to an increase in the number of trips taken by the public and an increase in Grab fares in line with demand.
In addition, the recent heavy traffic jams on all major thoroughfares in the country have increased the cost of Grab drivers, which means that they need to spend more time and gas to carry passengers. Traffic congestion has also led to a reduction in the number of orders that drivers can fill, all of which are reasons for Grab’s fare increase.
Grab urges passengers to plan their trips in advance and book their cabs in advance so that they can avoid the problem of not getting a cab.
The reasons for Grab’s fare increase
1. Decrease in the number of drivers and increase in passenger demand.
2. Traffic congestion and fare increase to compensate drivers.
