Holiday Season is here, the crowd doubles and the traffic gigantic during this Season turning commuters to prefer GRAB as an alternative to their usual commuting options. But complaints here and there went viral on social media that even caught the attention of LTFRB, penalizing GRAB for its “high exorbitant fares”. But is it really that much?
Is GRAB fares too much? To help our commuters understand that GRAB fares wasn’t too much, here are some factors to consider:
1. FUEL Costs
Fuel costs range from P40 – P47/liter depending on the vehicle if it uses diesel or gasoline. Fuel costs are lower in some areas like Fairview QC and Silang, Cavite but would our drivers go for full tank in those places just to refill? Of course not. Us for example uses Nissan Almera 1.5E, we only use premium gasoline which is more expensive compare to diesel. Fuel costs fluctuates every now and then. A liter of fuel can cover only 9KMs. It is very rare that a GRAB ride can last for only this short distance. So do the math, 9KMs/Liter, a liter costs P47 x other factors which will contribute to your fare.
So there on our #1 factor is the fuel costs, adding to the costs of fuel consumption is the enormous TRAFFIC our drivers were braving. During heavy traffic, the car’s engine is on and air-con is being used, adding to the consumption of more fuel, and less chance for our Grab drivers to pick up another ride. It is estimated that an hour ride should at least reach P300-P500 depending if it is a regular Grab car or Premium. In this calculation, whether it is traffic or not, our Grab Peers can still be assured of a good take home pay.
3. 20 – 25% GRAB commission
GRAB is a ride hailing platform, and do business with its peers, hires hundreds of staff, have Operational and Strategical Managers, Hires high paying IT for its systems and most of all pays tax to our Government thus it is only right that they get commissions from its Peers which also benefit from its platform. The commission (20 or 25%) will depend on the performance of the GRAB Driver and the timing of his joining to GRAB. It is just like a usual company who gives extra to its Outstanding Drivers who hits GRAB’s target each week.
4. Vehicle Maintenance
Should we say more, the more our vehicle is on the road for 10-12 hours and some even beyond also means more chances of mechanical breakdown and scratches (breaks, clutch, aircon, etc.). And also covering too much distance means frequenting a visit to the casa for “change oil.” We do our maintenance every 3 months or 5,000 miles whichever comes first and this will cost a minimum of P1,500 and higher again depending on the casa and the type of vehicle. So an Operator have to allot a certain portion of income to cover these expenses.
5. Monthly Amortization
Since GRAB cars are all new cars (current year up to 5 yrs.), we can expect that these peers are still paying their monthly amortization which costs from P13,000 – P35,000 again depending on the unit. For example, Toyota Vios range from P13K, Almera P14,500, Innova P25-28K, SUV P30-35K. Although there are some who were able to pay their vehicles in cash, but the majority of our peers are still paying their monthly car amortization which they also derive from their income with GRAB.
6. Pick-up point location
At times there are instances that the pick-up location is too far away from the driver, this happens when there are limited Grab cars in the area.
With GRAB you are paying for extra convenience, unlike taxi, we all know that GRAB Cars will pick you up exactly where you are, the vehicles are all new, drivers are neat and when we say Premium it is incomparable to your regular way of commuting.
8. Alternative Transport only
GRAB is just an alternative mode of transport, unless you are privileged enough to use the platform on your daily commuting basis. It is like drinking Starbucks on an occasional basis. One cannot compare the fares of using a Grab to that of anything use for massive transport like Jeepneys, buses or MRT/LRT. So if you are a new Rider of GRAB definitely you will find this option more expensive than the usual public transport.
9. GRAB is cheaper compared to other Premium service
Comparing to Rent A Car, GRAB is way too cheap for a premium service. Often, when I encounter Renters asking for car for hire but with a very limited budget, I often ask them to book a GRAB instead because this is at least 20 – 30% cheaper.
Surge happens when the demand is too high versus the number of vehicles available. As to any kind of goods, the law of supply and demand also applies during “surge” times. So if you are on a limited budget, avoid booking a GRAB during “surge”.
Overall, GRAB just like the other TNCs originally meant to be just a RIDE SHARING platform, where Operator-driver share their rides going to and from the office, home or to anywhere they can. But our public began to love the services these platform offers and the demand tremendously increased, that even LTFRB trust that GRAB can help augment the needs of the riding public. TNCs are really a big help not just to the commuters but also to our fellow Filipinos who managed to have a source of livelihood just by driving their cars, or hiring one. As a Rider we should also understand that these GRAB Operators/Drivers also have a family to support too, and let us help them to achieve enough income that is even more than just for car payment and maintenance. These drivers also have mouths to feed, and bodies to take care of. Let us support these people in order for them to continue plying in our streets.
Disclaimer: The opinions expressed in this article are the author’s own and is not influenced by GRAB or anyone. This is purely based on personal experience and observations.
Anything you want to add on my list? Feel free to write it on the comment section.
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