Grab announces peak hour fare structure change, to be more expensive when stuck in traffic

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Starting today (16 January 2023), Grab is implementing a change to its fare structure during peak hours in Klang Valley that would provide fairer compensation for Grab drivers. As for consumers, the change would mean higher fares when the ride is stuck in traffic. 

According to Grab’s official website, the company introduced this change to ensure that Grab drivers are better compensated for their time on the road. The change includes higher per-minute fares, far pickup bonus and hourly cash back. 

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For JustGrab in Klang Valley, the new fare structure reduces the fare per km from RM0.70 per km to RM0.25 while increasing the fare per minute from RM0.20 per minute to RM0.43 per minute. With the change, Grab said that the overall fare levels remain roughly unchanged. 

Besides that, Grab also clarified that the fare structure tweak means higher fares during peak hours in busy areas such as KL city centre at 6pm where traffic is heavy. The company gave this example of a trip with a slow average speed of 20km/h:

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Conversely, it also means lower fares for trips that take faster to complete, such as trips on clear highways. Here’s an example provided by Grab with the same 10km distance as above but at a faster average speed of 40km/h:

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Do note that fares are calculated upfront based on system-estimated distance and system-estimated trip time. Moreover, the fare structure change doesn’t affect trips to and from KLIA. 

So, what do you guys think of this change by Grab? Share your thoughts with us in the comments below and stay tuned to TechNave for more trending tech news from Malaysia and beyond!