Grab’s cancellation percentage rate method ‘inappropriate’ – solon
The “cancellation rate method” of Grab Philippines is “inappropriate,” a party-list lawmaker said on Tuesday as he urged the Land Transportation and Regulatory Board (LTFRB) to look into the transport network company’s (TNC) cancellation threshold.
Kabayan party-list Rep. Ciriaco Calalang, member of House transportation committee, pointed out that 24 cancellations per day should be enough reason to conclude that a driver is “reneging on (his) commitment” to passengers.
“Grab TNVS (transport network vehicle services) units were issued certificates of public convenience (CPC) and provisional authority (PA) by the LTFRB. Those documents mean the TNVS are performing a public service,” Calalang said in a statement.
“If a TNVS driver cancels at least 24 accepted bookings in a day, that is an average of one cancellation per hour and that I believe is enough information and reason to conclude that driver is reneging on its commitment to perform the public service authority it got from LTFRB,” he added.
The lawmaker likewise warned that if Grab would not revise its cancellation rate policy soon, then the LTFRB should step in “to enforce discipline with appropriate sanctions ranging from CPC and PA suspension to cancellation.”
“Grab’s percent cancellation rate method is inappropriate. I believe 24 cancellations per day is the proper method and threshold because that is already a significant number and affects thousands of passengers,” he said.
In a media briefing last week, Grab Country Head Brian Cu explained that they only allow a 10 percent weekly cancellation rate.
This means, if a driver runs an average of 12 rides per day, only 1 ride, or 10 percent of the total trip, is allowed by Grab to be cancelled.
If the driver went beyond the allowed rate, he may face sanctions such as suspension or total ban from the platform.
“Those with 10 percent and above cancellation rate per week may face sanctions such as suspension and complete banning from the platform,” said Cu.
Meanwhile, he said drivers may qualify for incentives if they have at least 80 percent of acceptance rate, and five percent or lower cancellation rate.
“So if mag-cancel siya ng marami, aakyat ng 15 percent ‘yung cancellation. Maaari na 90 percent acceptance, pero kinacancel naman niya pala. Mataas ang cancellation, tanggal po siya sa incentives,” Cu explained.
(So it he cancels many times, the cancellation will climb to 15 percent. It may be 90 percent acceptance, but he’s also canceling them. If the cancellation is high, he won’t have incentives.)
The Grab official said if a driver’s cancellation threshold exceeds 30 percent, the driver would be charged a higher commission by the company. The company is currently imposing a 20 percent commission from the total fare per ride.
On Monday, Grab said it meted sanctions on nearly 500 drivers last week following an internal investigation over mounting complaints against drivers who inexcusably cancel passengers’ ride bookings. /je