Grab imposes $2 fee for excessive cancellations

Photo: Yahoo Singapore

Cancel your Grab booking one too many times, and you will be subject to a cancellation fee. 

Specifically, passengers who cancel more than 10 times in a week will be levied a $2 fee, the ride-hailing app announced on its blog on Tuesday (10 January) .

Warning notifications will be given before the fee is deducted from a user’s GrabPay account.  Errant passengers who do not have the account will have to enable it before they can use the app again.

A company spokesman noted that the performance of Grab drivers is partly based on their cancellation rates. Drivers with low cancellation rates enjoy higher incentives and perks, which makes them think twice before cancelling.

“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.”

The spokesman added, “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.”

Rival app Uber currently imposes a $6 cancellation fee. However, users can cancel rides for free up to five minutes after they make a booking. If a driver is more than five minutes late, the cancellation fee does not apply.