Grab Philippines implements cash subsidy program for drivers

REUTERS/Edgar Su/File Photo

Transport Network Company (TNC) Grab Philippines is implementing a new cash subsidy program to coerce their partner drivers to once again accept trips.

Recently, Grab drivers are no longer accepting some trips due to the suspension of the Php 2 per minute charge, which lowered their profits.

Gumawa tayo ng programa dito sa Grab para i-subsidize yung mga fares na sinasabing lugi ng ating mga partners,” Brian Cu, country head of Grab Philippines, said during DZRH’s One On One,

According to Cu, a driver should earn at least Php 330 during an hour-long trip.

Due to the new cash subsidy scheme, Grab Philippines will shoulder the deficiency if a driver gains less than Php 330 during a one-hour trip.

The TNC company expects that the cash subsidy program will cover 20-25% of all trips.

If ang time for travel is one hour and the fare is only Php 250, then Php 80 yung ishoshoulder ng Grab,” Cu explained.

Cu also assured that the cash subsidy scheme will not result to a fare hike since their fares are regulated by the Land Transportation Franchising and Regulatory Board (LTFRB).

“Regulated ang fares natin kaya hindi tayo pwedeng basta-basta mag-akyat ng fares,” Cu explained.

The Grab official further reported that the cash subsidy program has received mixed reactions from their driver-partners

Sanay sila sa iba klaseng scheme before na kung saan mag-dridrive sila ng certain number of trips, makakuha sila ng incentives. Binago natin iyon para ito titiyakin na walang luging byahe ang ating mga driver,” Cu said.

Kailangan natin i-communicate ng maayos sa ating mga partner para kusa nilang maintindihan, at maintindihan nila na mas makakabenepisyo ito sa kanila,”  Cu added.

Last April, the LTFRB suspended the Php 2 per minute charge since the said fees were not approved by the board.

The issue regarding the legality of the Php 2 per minute extra charge came into light following the complaint of Puwersa ng Bayaning Atleta (PBA) Rep. Jericho Nograles.

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