Grab says nearly 500 drivers sanctioned after cancellations

April 23, 2018

Grab Philippines has sanctioned almost 500 drivers last week following an internal investigation into mounting complaints of drivers cancelling passengers' bookings, the company said in a statement on Monday.

“We will never tolerate any behavior that compromises the quality of our service. We see every post and complaint. We apologize that our services fell short. However, we will move forward. We have rolled out additional and stricter measures to address issues on cancellations and this is just the start. We promise to improve to provide the quality of service our passengers deserve,” Grab country head Brian Cu said.

“Only 5 percent cancellation rate is allowed as metric for incentives. Those with 10 percent and above cancellation rate per week may face sanctions such as suspension and complete banning from the platform. We assure our driver-partners that we will follow proper investigation and due diligence.” Cu mentioned.

But after the Land Transportation Franchsing and Regulatory Board (LTFRB) order to suspend Grab’s P2 per minute travel charge, driver cancellation rate doubled at 11 percent last Friday and Saturday.

Drivers drove less and Grab was only able to service half of the passenger demand, he said.

The LTFRB imposed that rule after it was faced with complaints from riders that Grab was charging more.

"Drivers have to buy gas, pay the monthly amortization for the vehicle, or the daily boundary, and when traffic stalls them, it is only the P2 per minute that saves their income. So with the P2 gone, many of our drivers earn less and drive less, if at all. No matter how willing they are to drive, they are left with no choice but to think of ways to recover their expenses. Sadly, most of them have resorted to cancelling bookings especially when they know they will traverse traffic," he added.

Grab has appealed to the LTFRB through a filed motion for reconsideration, explaining that the P2 per minute travel time fare component was legal (based on the 2015 Department of Transportation),  and necessary  to protect the livelihood of driver partners while sustaining transport demands of the riding public.

Cu said the P2 is not a Grab income because 80 percent goes to the driver directly while the 20 percent is spent on driver incentives and rider promos. DMS