Grab Philippines is seeking a P20 increase in its base fare amid skyrocketing fuel prices and to entice more drivers to join the platform.
Prices of diesel, gas, and kerosene are expected to increase next week, due to petroleum supply concerns amid the Russia-Ukraine conflict.
The cost of diesel is seen going up between P2.40 and P2.70 per liter, while kerosene prices could increase from P1.60 to P2 per liter starting on Tuesday.
Gasoline prices, meanwhile, could increase between 0.30 to P0.60 per liter, according to industry sources.
Ronald Roda, Grab PH senior director for operations and strategy, told reporters over the weekend that the company recently filed a petition before the Land Transportation Franchising and Regulatory Board (LTFRB) to adjust the base fare by P20.
“So what we’re asking for now, look, in the interest of time and for the driver community, please just give us a P20 base fare increase.
That is computed as nothing but covering for the gas of driver-partners for the day,” Roda said.
The LTFRB has set a P40 base fare for ride-hailing services.
“We had to do it not for us but because our drivers are asking for it. We did it for our drivers,” Roda said.
“It’s been difficult now. This industry was very badly affected during the pandemic because of the shutdowns. A lot of cars got repossessed by the banks. So we’ve been trying to do is get back supply,” he added.
Roda said that the earnings of its driver-partners dropped as much as 20 percent due to the rising fuel prices.
“The LTFRB has given 8,000 slots to the TNVS community which is currently being filled up very very slowly. So, with the increase in gas prices, it is much much harder to attract drivers into the platform because they are afraid of what might happen. Not to mention the existing ones are complaining that they are kind of at the end of their patience as far as gas prices are concerned,” Roda said.
To help its driver-partners, Roda said Grab reduced its commission from 20 percent to as low as 12 percent.
“Lessening commission is one way to give back it to the drivers,” he said.
“The second one is a peak-hour incentive. It is an incentive for drivers to drive during peak hours. Obviously, it is not something that can be sustained long. For example, plus P30 per ride on peak hour. We’re doing this now but it is not sustainable,” Roda added.