Grab Responds to Driver 'Protest' Amidst Growing Dissatisfaction Over Revenue Sharing

Some drivers for ride-hailing service Grab in Vietnam have temporarily switched off their apps to protest against the company's commission rates and fare structures. The move, which gained traction on social media platforms like Facebook, saw calls for drivers to boycott the service. Grab stated that its services in Vietnam remained "stable and operating normally" during the period of the protest. The company reported that the average income of active drivers increased compared to the previous week, despite unfavorable weather conditions in some areas. Grab clarified that drivers have the individual right to log off, and the company only deactivates accounts for policy violations. Vietnamese authorities have shown concern over the dissemination of information regarding the protest. Reports indicate that authorities in Hanoi have taken action against a social media user for allegedly posting false information about a Grab driver strike and have cautioned other accounts against sharing unverified content. The welfare of ride-hailing drivers, whom Grab refers to as "partners," has been a recurring issue. At a recent seminar in Ho Chi Minh City, a driver with over 10 years of experience highlighted that the per-kilometer fare had decreased from 3,000 VND in 2015 to approximately 2,000 VND currently, while living costs and fuel prices have significantly increased. Drivers often report working 13 to 15 hours daily to achieve a monthly income that, after deducting expenses for fuel, maintenance, and other living costs, is considerably reduced. Grab's pricing structure is described as complex, incorporating various surcharges such as those for bad weather, waiting times, insurance, carbon offsetting, and route changes. Grab explained that its algorithm calculates fares based on factors like distance, time, traffic, weather, and real-time demand, leading to fluctuating commission rates. The company stated that it implemented a "flexible app usage fee" from 2024, asserting that the driver revenue split and platform fees have not changed since then. However, Grab employs different revenue-sharing models across Southeast Asia. In Indonesia, commission caps for motorcycle ride-hailing services were reduced to a maximum of 8% of revenue, down from 20%. In the Philippines, Grab temporarily reduced its effective commission rate for drivers from 21% to around 15%. The National Competition Commission under Vietnam's Ministry of Industry and Trade has requested Grab and other ride-hailing platforms to provide information regarding their pricing mechanisms, fee policies, discounts, and deductions applied to both customers and drivers. Grab has expressed its commitment to cooperating with authorities and stakeholders to support the development of Vietnam's gig economy.