Grab has updated their cancellation policy to make it “fairer for everyone”. Starting March 11, passengers can cancel their rides for free if they do so within the first five minutes of booking. If the ride is canceled after five minutes, it’ll incur a $4 charge, which will be deducted directly from the customer’s GrabPay balances or credit/debit cards.
The previous policy involved a $5 fee on the third cancellation made within the duration of a week. The change to the system, according to Grab, is to ensure more flexibility for passengers and fair compensation for Grab’s driver-partners.
On top of that, there’s a no-show fee of $4 if drivers wait on the passenger for more than five minutes. The ride-hailing firm assured that it’s an either-or situation — it’s a $4 charge for late cancellation or not showing up on time, but you can’t be charged for both at the same time.
Late cancellation fees and no-show fees will go directly to drivers to compensate their time on the road.
“For many of them, Grab serves as a source of income, and when passengers cancel at the last minute or don’t show up for their ride, drivers waste fuel and miss out on earnings they could have gotten from taking another job,” the company wrote on its website.
“We expect this policy update to affect less than 1% of our bookings, as the majority of passengers don’t change their minds after booking.”
On the GrabShare car-pooling service, it’s even less lenient — cancellation fees will apply when passengers call off the ride after three minutes of booking or when drivers cancel it after three minutes of waiting.
Of course, there are exceptions to rule. Passengers who’ve waited way too long for their rides will have their cancellation fee waived, as long as the driver does not arrive within five minutes after the initial estimated time of arrival. Drivers can’t go on a cancellation spree either — they’re required to wait on passengers for at least five minutes before a fee can be charged. If the ride is canceled by the driver before the five-minute waiting period is up, passengers won’t get charged.
“We believe that this update makes cancellations fairer for everyone,” wrote Grab. “When you cancel your ride within 5 minutes, you’re freeing up the ride for other riders, and you benefit when other riders do the same.”
