SINGAPORE: Grab plans to introduce a 30 cents ‘platform fee’ on every ride in Singapore. For a company that is so embedded with people’s daily lives and transactions, such a move would obviously raise eyebrows, and even concerns whether Grab will abuse its power”.
They all make sense economically, and logically. However, it often did not go well with consumers. It became difficult to estimate how much it will cost from point A to point B - the source of many disputes. When Grab first introduced fixed, upfront pricing, a voice in the industry was saying that it does not make sense. Because on the road multiple factors could impact the time and distance. Uber stuck with an in-app meter, with multiples to show the surge pricing.However, consumers seem to love the certainty. Knowing the ride will cost S$30 rather than “2X normal fare” would make them feel more comfortable.
Ultimately, public transport pricing is always a sensitive topic because it impacts millions of ordinary people. Each fare review always invites a lot of discussions in the public. This is the case even when it is debatable whether private rides constitute public transport. Everyone knows that eventually platforms need to be profitable, in a sustainable way. The matching efficiency compared to old taxi booking systems can only squeeze the cost to a certain extent.
With so much transactional data and so many in-house data scientists, it is reasonable to believe that Grab has done the full impact analysis before submitting the proposal to the competition commission.
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