Cu: Grab invests P5M to mobilize more drivers

CEBU, Philippines - Transport network vehicle services (TNVS) provider Grab Philippines invested P5 million to mobilize non-active registered drivers to meet the over 80 percent surge in demand after the suspension of its rival Uber.

In a press conference yesterday, Grab Philippines country head Brian Cu said that the P5 million investment is spent via giving attractive incentives to "dormant" drivers (those who do not drive frequently) in order to mobilize them fully.

Out of 54 thousand registered Grab drivers nationwide, three thousand of whom are in Cebu.

In Cebu, of the 3,000 member drivers, only 2,000 are active.

While Grab has invested particularly to meet the surging demand, Cu dismissed allegations that fare surges are also jacked up.

"Our fares increased only marginally when comparing the period and after Uber's suspension. The rides that have a marginal increase due to the current supply-demand dynamics comprise about 60 percent of our serviced rides," explained Cu.

He added that Grab is also investigating why the four percent of rides are priced higher post Uber suspension.

Prior to the suspension, maximum surge allowed by the LTFRB was 2X since December 2016. But after the suspension last week, in consideration of the effect of the spike in the demand for rides, Grab voluntarily capped the surged to a maximum of 1.4X.

Thus, Cu reasoned that there is no disproportionate increase in Grab's fares.

"This distribution of the high-fare rides is still very similar to each other, meaning the number of high-fare rides between two periods is relatively the same," added Cu.

Cu was in Cebu yesterday as one of the resource speakers during the Mandaue Chamber of Commerce and Industry (MCCI) Business Summit 2017 held at the Mandani Bay.

Established five years ago in Malaysia, Grab is Southeast Asia's leading ride-hailing platform. It currently offers services in Singapore, Indonesia, Malaysia, Thailand and Vietnam. The Philippines is one of its fastest growing markets for Grab services. (FREEMAN)