Grab releases new GrabCar fares, but is it lower than Uber?
By Goh Thean Eu October 11, 2016
- New rate makes the ride hailing industry more competitive
- New fare is aimed at helping both passengers and drivers
Grab, Southeast Asia’s leading ride hailing company, has lowered its GrabCar fares by more than 10% from RM1.30 per km to RM1.10 per km in Klang Valley. (RM1 = US$0.25)
The new rate is applicable for weekends (all day) and weekdays non-rush hours (rush hours: 6am-10am and 5pm-8pm). The new rate is effective immediately.
“We take fare pricing seriously with a long-term approach,” said Grab Malaysia country head Jaygan Fu.
“Grab offers the most competitive on-demand transport service for private cars in Klang Valley by providing cheaper fixed fares and higher quality service to our passengers.”
Fu added that the revised fares in Klang Valley is aimed to help both passengers and drivers.
“Our passengers can plan and manage their journeys better to void the usual rush hour and capitalise on our lowered fixed fare so they can do away with the hassle of driving around looking for parking space and paying parking fees when going out for meetings, shopping or just head out for lunch,” he said.
“So regardless of traffic conditions, they are guaranteed a safe, convenient, comfortable and most importantly, pocket-friendly fixed fare.”
So, which is cheaper now?
Under this new, revised rate, the base fare remains the same at RM1.
Without naming the competitor's identity, Grab, in the statement, said that a ride from Bangsar to KL is now RM11 with its new fare while other ride hailing service may charge between RM12 and RM17.
“Whilst a ride to and from Bandar Utama and Pavilion is now RM17 during non rush hour and Zouk to and from TTDI is now only RM18 (in contrast, competitor’s rates are between RM18-24 and RM19-26, respectively),” said Grab in a statement.
A check by Digital News Asia revealed that a ride from PJU5 Kota Damansara to Pavilion at 1pm on October 11, 2016 using GrabCar will cost a flat rate of RM24. In contrast, using Uber for the same destination costs RM23-30 (rate varies, depends on the route the driver takes and the congestion).
The revised rate clearly makes the industry more competitive, and will ultimately benefit both riders and passengers – as it will encourage passengers to use the app more frequently, and hence, giving more income opportunities for the drivers.