Grab will soon charge up to RM5 for cancelled rides

Grab, one of the most popular apps for ride-hailing in Malaysia has announced a revision on their cancellation policy. Passengers who cancel their ride five minutes after getting a driver will now be charged a minimum cancellation fee of RM3 to RM5, depending on the service you requested. This change will be effective from the 25^th March 2019.

The RM3-RM5 cancellation fee will be applied to passengers if they cancel a ride after 5 minutes of getting a driver and RM5 if the driver cancels the ride after waiting at the pick-up point for more than 5 minutes. No cancellation fee will be charged if passengers cancel the booking within 5 minutes of matching with a driver.

However, this is not a fixed rule. There are circumstances where you’ll not be charged for cancelling after five minutes. If your driver does not arrive 10 minutes after the estimated time of arrival, your cancellation fee will be waived.

In a separate scenario, if your driver cancels at the pick-up destination before waiting for 5 minutes, you’ll not be charged as well. Instead, the driver will be penalised. It is advised that passengers should contact his or her driver via call or GrabChat before cancelling.

For users who are on GrabPay, the cancellation fee will be deducted directly from their GrabPay Credits balance or credit/debit card. Passengers who use cash will be charged on their next ride’s fare.

All cancellation fees charged will go to the driver to compensate for the time wasted. This is done to safeguard the interest of the driver and ensure that passengers will not simply cancel their book at the expense of the driver’s time. According to Grab, the policy change will affect less than 1% of the bookings.

Uber, another major ride-hailing service provider, used to charge passengers RM5 for late cancellations when they are still operating in Malaysia. In fact, the cancellation policy is similar to what Grab has updated now. I would argue that the policy change is fair for both the passengers and the drivers. If passengers aren’t penalised for late cancellations, they can simply cancel a booking without breaking a sweat while drivers waste unnecessary fuel and time.

You can visit Grab Malaysia for more information regarding the cancellation policy change.