What to expect from the new e-hailing regulations
1. How will this impact me and is there anything I can do?
With potentially fewer drivers on the road, we anticipate that your ride experience will be affected. Therefore, we suggest you pre-plan your travel, for the time being, with these simple tips:
- Book earlier than usual: Book your ride earlier and be ready when the driver arrives, especially if you have a flight to catch or need to get to an important meeting.
- Ride during non-peak hours: Getting a ride is much easier outside the peak hours of 7-9am and 5-8pm.
2. What does the E-hailing Regulation “soft landing” approach mean for me?
Currently, Grab drivers will be able to continue driving, but they will need to obtain their PSV licence to continue driving from 12 October 2019 onwards. As more and more drivers get licensed, this potentially means that there will be minimal disruptions to ride services.
3. How will this impact the fares?
As commuters ourselves, we understand the pain passengers feel when fares are higher. However, with the possibility of fewer drivers on the road, you may experience an increase in dynamic fares, especially during peak hours and rainy weather.
4. What is Grab doing to help the situation?
Since the regulation process was formalised in Apr 2019, Grab, together with our driver-partners, have been working hard to meet those requirements. Key initiatives Grab has undertaken include;
| Minimising driver licensing costs | Hasten licensing process | Incentivise drivers to get licensed before 12 October |
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The sooner more drivers can complete and obtain their PSV (Public Service Vehicle) license, the sooner this situation will improve.
5. Why did the driver-partners not get their E-hailing licenses earlier?
While the intention to implement e-hailing regulations was announced last year, the actual process only started in April 2019. Leading up to soft landing on 12th July 2019 AND the regulations enforcement date on the 12th of October, we have been working closely with the Ministry of Transport, JPJ, APAD and Puspakom to improve the efficiency of the process, and to help our drivers with the costs.
6. Will this impact GrabFood, GrabExpress and other Grab services?
No, it will not. The new e-hailing regulations only affects private car ride-hailing services, such as GrabCar, JustGrab, GrabCar Plus, GrabCar (Premium), etc. Taxis on Grab are not impacted.
What are the new e-hailing regulations about?
1. What are the regulations about?
Effective 12 October 2019, all e-hailing drivers will have to comply with a set of regulations laid out by the Ministry of Transport, this includes obtaining a PSV license, the need to purchase an e-hailing insurance, annual vehicle checks, medical checks, and more.
2. What are the regulations for?
The regulations are intended to create a legal framework, ensure consistent standard and safety as well as to level the playing field with the taxi industry.
3. What has Grab done to solve it?
We have been engaging and working very closely with the relevant parties (Ministry of Transport, Jabatan Pengangkutan Jalanraya[JPJ], Land Public Transport Agency [APAD] and Puspakom) to expedite the processes more efficiently to help our drivers transition through the regulations. This includes implementing digital online training and the introduction of an industry first daily e-hailing insurance.
We have also introduced the Grab Pakej Pikul Bersama, whereby we subsidised almost RM800 to help relieve the financial burden of the regulation process on our driver-partners. More info on this can be found here: https://www.grab.com/my/driver/regulations/
4. Are all drivers’ licensed?
All driver-partners have a proper driving licence, however as part of the new e-hailing regulations, all e-hailing drivers are required to register and complete their PSV license test. A PSV licence is a type of vocational driving licence which allows the holder to drive any type of vehicle used to transport paying passengers, such as taxis.
5. How do I know if a driver has his/her e-hailing licence?
Passengers will be able to identify a driver with an e-hailing licence from their Grab driver app. If your driver is not a verified e-hailing driver, we encourage you to let us know via the Grab app.
6. So what does this mean to me?
With fewer driver-partners on the road to meet the demand for e-hailing, we estimate longer waiting time for your ride. This means if you typically had to wait 5 minutes for your driver to arrive, you may now have to wait 10 minutes.
Moreover, you may experience more frequent dynamic pricing, depending on your location. When there are more people booking than the number of driver-partners available in an area – e.g. during peak hours, rainy weather, or in more secluded places – prices go up to encourage our driver-partners to head to you.
7. So what can we do?
As we estimate the waiting time for your ride may increase up to 2X, we recommend you plan your day and book your rides accordingly.
- Pre-plan: Book earlier than usual and be ready when the driver arrives at the pick-up point
- Order in: Planning to go out for meals? Perhaps use GrabFood or other food delivery services and get them delivered to you instead
8. Why does it take so long if the new regulations were announced last year?
Although the new e-hailing regulations were announced last year, the process to obtain a PSV licence was only formalised in April 2019. Since then, Grab together with our driver-partners have been working hard to comply with the regulatory requirements.
9. How long will this go on for?
We are working together with our driver-partners to help them obtain their PSV licence as soon as they can. We encourage you to plan your journey ahead of time to minimise the impact on you.
Will I still be able to get a driver?
1. Am I still able to get a driver?
Yes, you will still be able to make a ride booking, however, with lower supply of driver-partners to meet the demand of bookings made, you may experience difficulty in getting a ride and longer wait times for your Grab ride to arrive. We advise to book for your ride earlier and avoid peak hour, when it is possible.
2. Why are there less drivers on the road?
There are currently drivers who are still undergoing the process acquiring the PSV licence. We are currently working closely with our driver-partners through this process to obtain their licence as soon as they can.
3. Are all the cities affected with low supply?
Yes, we anticipate fewer e-hailing drivers on the roads nationwide.
How long will I have to wait for a driver?
1. Why does it take so long to get a ride?
With the possibility of fewer drivers on the road to meet current demands, it might take longer for a driver to become available for you, especially during peak hours, rainy weather or in more secluded areas.
We recommend that you make your booking in advance ahead of time, where possible, to ensure that there is sufficient time to be allocated a driver.
2. How long do I have to wait for a car?
We estimate the waiting time for your ride may increase up to 2X. This means if you typically had to wait 5 minutes for the driver to arrive, you may now have to wait 10 minutes. Therefore, we recommend you plan your day and book your rides accordingly.
3. Can I cancel if I wait too long?
We encourage you to check with your driver via a call or GrabChat. He/she might be coming from a further distance, or caught in heavy traffic. If there’s a need to cancel because your ride’s taking much longer than indicated to arrive, you will not be charged.
Cancellation fees are waived if your driver does not arrive within 5 minutes after the first-shown estimated time of arrival. For example, if you are allocated a driver who is 10 minutes away, and you’ve waited for more than 15 minutes (i.e. 10 mins + 5 mins), your cancellation will be waived.
Will fares be affected?
1. What happens to the fares?
The base fares for Grab rides will remain the same. However, with fewer drivers on the road to meet current demands, you may experience an increase in prices during peak hours in high demand areas and times.
2. Will Grab be increasing its fares?
No, Grab will not be increasing the base fares of all services, however, with fewer drivers on the road to meet current demands, you may experience an increase in price during peak hours in high demand areas and times.
This is due to our “dynamic pricing” which is a tool to help improve ride allocation. When there are more people booking than the number of drivers available in an area – e.g. during peak hours, rainy weather or in more secluded places – the price for a single ride increases to encourage more drivers to head to you.
3. Will peak hours surge be increased?
We have put in place a price limit for Grab rides and will continuously work on making sure that the pricings are within reasonable means to support our drivers while ensuring you get a ride to your destination.
Our main priority is to make sure you get a ride as fast as possible. We call this “Dynamic pricing” to improve ride allocation. When there are more people booking than the number of drivers available in an area – e.g. during peak hours, rainy weather, or in more secluded places – fares increase to encourage more drivers to head to you.
4. Will Grab be changing the cancellation fee?
You will still be able to cancel freely, without charge, if you cancel within five minutes of getting a ride. We encourage you to check with your driver via a call or GrabChat. He/she might be coming from a further distance, or caught in heavy traffic.
Cancellation fees are waived if your driver does not arrive within 5 minutes after the first-shown estimated time of arrival. For example, if you are allocated a driver who is 10 minutes away, and you’ve waited for more than 15 minutes (i.e. 10 mins + 5 mins), your cancellation will be waived.
5. Will Grab be earning more?
No, not at all. “Dynamic pricing” is put in place to maintain fairness to our drivers who are working hard to get to your through traffic while ensuring you get a ride.
6. Will there be promos?
To protect and add more value to your overall Grab experience, we have developed additional ways to further optimise each of your Grab rides.
- GrabRewards loyalty program: GrabRewards points can be converted to subsidise your transactions across Grab services, from transport to food and parcel delivery.
- GrabClub subscription plans: monthly subscription plans to help you save up to 55% on Grab services you use frequently.