Ride-hailing app Grab has taken the initiative once again to launch a new dynamic pricing service for Taxis, a first of its kind in Singapore. The new service will be named JustGrab.
JustGrab will be available to the public from 29th March 2017, while beta-testing starts today.
Earlier in February 2017, taxi operators sought approval from transport authorities for implementing dynamic pricing for their taxi fleets to level the playing field with private-hire drivers who enjoy surge fares in periods of high demand.
How does it work
Riders who choose to book a JustGrab trip will be picked up by either a GrabCar driver or a taxi-driver from one of the 5 partner taxi-companies, namely Trans-Cab, Premier, HDT Singapore, Prime and SMRT.
The nearest vehicle will be assigned the booking.
How much
JustGrab will adopt a upfront fixed fares model for bookings. The fare will be displayed upfront before the customer books a taxi.
JustGrab is also subject to dynamic pricing – which means that fares may vary depending on demand.
The fare is similar to that of Uber and Grab and will take into account travel time, distance, booking fees, and the real-time demand and supply of vehicles to determine the upfront fare.
With dynamic pricing, the cost of a trip will vary according to demand. Commuters can expect to pay more during peak hours and high-demand periods, and look forward to paying less when demand is low.
Additional surcharges
There is a $3 charge for each additional 5 minute waiting time and $5 for each additional drop-off point within a 5km radius of the destination. If the additional drop off point is more than 5km from destination, rider will have to make a separate booking.
WHY?
JustGrab adopts a upfront fixed fare model which only take into account the time and distance to get from Point A to Point B and does not take into account of any diversion.
Scary ? Take Metered Fare la
Metered fare will still be available for riders who are used to it. Upfront fixed fare with dynamic pricing only applies to JustGrab and GrabCar/GrabShare.
Difference between JustGrab and GrabCar
JustGrab – Involves Taxis and GrabCar. No GrabShare !
GrabCar – Involves GrabCar only and everyone’s favourite GrabShare
Accepting a GrabShare Job and GrabCar Job looks the same.
What does the introduction of JustGrab means for current private-hire drivers?
The sudden increase in supply of taxis to compete with private-hire drivers spells trouble for all Grab drivers. Grab can increase the supply of cars by many folds in a day but there is no way they can increase the demand from riders at such at exponential rate.
When supply is more than demand, WILL SURGE PRICING BE A THING OF THE PAST ?
