Grab Effectively Increases Klang Valley Peak Hour Fares To Compensate Driver-Partners

Grab has announced peak hour fares Online car-hailing service Traffic in Klang Valley will increase from 16 January 2023 onwards.This is intended to provide its driver partner Get fairer compensation and make sure their entire journey — from passenger pick-up to drop-off during these peak traffic times — is worth it.

Driver-partners have complained that existing peak-hour fares barely make up for the time they spend stuck in traffic, the company said. As a result, Grab has now modified the structure so that fares affected are based more on the time it takes to complete the ride rather than the distance it takes. More specifically, it was revealed that the fare per minute is now increased from RM0.20 to RM0.43, while the fare per kilometer has been reduced from RM0.70 to RM0.25. These changes ensure that the overall fare level will remain largely unchanged during normal times, but will gradually increase during peak hours.

Image: grab

According to Grab’s FAQ page, the fare is calculated as base fare + (trip distance x fare per kilometer) + (trip duration x fare per minute). For example, a 10km journey that takes 30 minutes during peak hours will cost passengers RM 18, while a 10km journey that takes 10 minutes during normal hours will cost RM 11. Compared to the previous rate, the former will cost RM 15 less, while the latter will be slightly more RM 12.

Revised fares for peak hours. (Image: Grab)
Revised fares for normal business hours. (Image: Grab)

Additionally, the company is offering new incentives for driver-partners, including Far Pickup Bonus and Hourly Cashback. The first of these replaces the previous Time Booster rewards, where drivers are now compensated between RM 0.25 and RM 0.35 per minute after 5 minutes. This is to provide more consistent compensation based on boarding time, regardless of fare amount, with higher rates applicable during peak hours.

Far pickup bonus. (Image: Grab)
Hourly cash back. (Image: Grab)

Meanwhile, the latter offers driver-partners a cashback multiplier based on the number of rides completed in previous weeks. Grab points out that JustGrab, MyDestination rides to and from KLIA, and taxi driver partners are not eligible for the reward.

(Source: Rob [official website])

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