OnDemand WTP Pricing Research

What happens after Uber was Grab’d | Philstar.com

4. Fares may be different from Uber.

In response to the question “Will fares change?”, Grab’s FAQs says “No.” However, that answer appears to address only the question of pricing methodology.  The FAQ states that services based on dynamic fares (like GrabCar or GrabShare) will continue to be calculated using base distance with a dynamic surcharge (based on factors such as demand and supply in that particular point in time, traffic conditions and estimated time for the journey).  Grab’s taxi options will be based on metered fares set by taxi companies.

From a practical and business standpoint, it is likely that Grab fares may be different from those formerly available in Uber. There is no guarantee that Grab fares (post April 8) will be the same as that provided by Uber.  Furthermore, Grab (and its new combined business in Southeast Asia) is a different business entity from Uber.  Therefore, independent of Uber’s prior prices, Grab would have discretion in determining the rates to be used on base distance and dynamic surcharge.

Prior to Grab’s acquisition of Uber in Southeast Asia, prices between Uber and Grab varied per country and location. A 2016 study conducted by IPrice found that, for the Philippines, Grab was cheaper than Uber. Notably however, that study was conducted during non-peak hours without taking into account surge pricing, discounts and other promos.

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What happens after Uber was Grab’d | Philstar.com.