Grab has announced a new fare system for Grab Premium that takes more than 50% off the existing fare.
When
The new Grab Premium pricing will be in effect from 29 May 2017
Who is affected
Grab Premium 4-seater is the only group affected. 6 Seater Premium is not affected
Why the new pricing
The reason behind Grab latest fare reduction for Grab Premium service is to increase demand for Grab Premium service during the June holiday season.
What will Grab Do
Grab will introduce a new Grabcar Premium Warrior Incentive for this campaign. Look out for the incentives detail in your email on 28 May 2017
Breaking down the numbers
Base Fare – cut by $1.25. 25% reduction
Per KM – cut by $1.05 per km. 58% reduction
Per minute – Increase by $0.24 per min.
Minimum fare – reduced by $9. 60% reduction
What it means to GrabCar Premium 4-seater Drivers
- Drive double the trips to earn the same amount of fare
Will this new pricing work
Yes
- It will work for Drivers who takes both GrabCar Economy Jobs and GrabCar Premium jobs. GrabCar Premium jobs are more like bonus trips for these group of drivers
No
- For Drivers who focus solely on GrabCar Premium jobs, they will have to double their efforts and trips to earn the same amount of money. Unless Grab runs a promo code campaign for GrabCar Premium service, it is unlikely to spike demand enough to match the reduction of fare
- Expect an increase in short distance trip as the price gap between GrabCar economy and GrabCar premium will be marginal for short-distance trips. It may be more attractive for people who want to travel in luxury for a small premium
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