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Grab Under Scrutiny in Vietnam Over Pricing and Discount Policies Amid Driver Income Concerns
Vietnam's National Competition Committee has requested Grab to explain its pricing, fee, and discount policies following driver complaints of reduced income. The focus is on Grab's commission rates and their impact on drivers' actual earnings.
Vietnam's National Competition Committee (under the Ministry of Industry and Trade) is currently reviewing the pricing, fee, and discount policies of ride-hailing giant Grab, following complaints from drivers about their real earnings being affected. According to numerous Grab drivers, the fares for some trips are set at low levels or have been reduced. Meanwhile, drivers bear the burden of input costs, fees, discounts, and deductions applied by Grab, which impacts their actual take-home pay. Drivers have requested clarity on the mechanism for determining and adjusting fares, fees, discounts, and deductions, as well as how Grab communicates policy changes. In response, the National Competition Committee met with Grab on September 8 and requested the provision of relevant information and documents. The committee has also asked several other ride-hailing platforms operating in Vietnam to provide similar documentation for comparison and evaluation. The committee stated that information gathering and verification are ongoing and that based on the review results, it will consider the matter and proceed with processing and investigation if any signs of competition law violations are found. The National Competition Committee also urged ride-hailing platforms to proactively review and publicly disclose their pricing, fee, and discount policies to ensure transparency and harmonize the interests of businesses, drivers, and users. Currently, Grab applies a 20% commission for its two-wheeled services and 25% for its four-wheeled services. The amount customers pay includes the basic fare plus platform fees and surcharges based on location and time. The total trip value displayed on the customer's app is always higher than the basic transportation fare. The driver's actual earnings are calculated by subtracting the fixed commission and related taxes and fees from the trip revenue, leading to a significant difference compared to the amount paid by the customer.
Original source
VnExpress