Vietnam watchdog probes Grab's fare and commission policies

Vietnam's competition regulator has asked ride-hailing giant Grab to explain how it sets fares, fees, and commissions after drivers complained that falling earnings had prompted calls for a strike. The National Competition Commission under the Ministry of Industry and Trade said Friday that it was reviewing and verifying complaints related to the pricing and fee policies of Grab, a Singapore-headquartered company that provides ride-hailing services in Vietnam and many other Southeast Asian countries. The authority said, according to reports from many drivers, fares for some rides have been low or reduced, while drivers continue to bear input costs as well as fees, commissions and deductions imposed by Grab. This has affected the amount drivers actually receive. The drivers have called for clarification on how fares, fees, commissions and deductions are determined and adjusted, as well as how Grab notifies them when its policies change. In response, the National Competition Commission met with Grab on Sept. 8 and requested information and documents related to its fare, fee and commission policies. The commission also asked several other ride-hailing platforms in Vietnam to provide similar documents for comparison and assessment. It said the collection and verification of information is underway. Based on the review, the regulator will assess the matter and conduct further action or an investigation if it finds signs of violations of competition laws. The National Competition Commission also asked ride-hailing platforms to proactively review and disclose their pricing, fee and commission policies to ensure transparency and balance the interests of companies, drivers and users. Grab currently applies a 20% commission rate to two-wheel services and 25% to four-wheel services. The amount paid by customers consists of the base fare plus a platform fee and surcharges depending on the location and time. The total ride value displayed on the customer’s app is always higher than the basic transportation fare. A driver’s take-home amount is calculated by subtracting the fixed commission and relevant tax and fee obligations from the ride revenue, resulting in a significant difference from the amount paid by the customer. Citing low fares and high commission rates, many Grab drivers in Hanoi and HCMC have urged colleagues to log off the platform on Saturday and Sunday to pressure the company to revise its policies. Many drives have been dissatisfied because total deductions could reach 30-50% depending on when they drove, and drivers have to cover fuel and vehicle wear and tear themselves, he added. A Grab spokesperson told VnExpress on the evening of Thursday that operations remained normal. The company was aware of discussions among drivers on social media and was carefully assessing the situation, but it had always prioritized drivers’ livelihoods and service quality, the person added. Source: VnExpress International