Grab responds to viral video on pricing, says fare difference kept small for pick-up points that are very near each other

SINGAPORE: Grab said on Friday (Jul 29) that pick-up points near each other can have different fares if they are located in separate "zones" on a map.

The company's statement comes after a TikTok video about alleged discrepancies in Grab's pricing model was widely circulated on social media. Some users claimed that fares were cheaper when they entered destinations manually, as opposed to selecting the same destination from a list of saved places. 

In response to questions from CNA, Grab said that the differences in fares were not because of the Saved Places feature in their app.

"Our pricing algorithm divides Singapore into many small zones on the map following latitude and longitude lines, based on the global Geohash system," a Grab spokesperson told CNA. 

"Hence, pick-up locations that are near each other physically can be in two different zones with different demand and supply conditions at any one time, thus resulting in different fares."

Grab said that the aim of the Saved Places feature is to make it more convenient for passengers to select pick-up or drop-off points they use frequently. Passengers who use this feature do not need to key in their addresses each time they book a ride.

In terms of fares, Grab said its pricing model balances multiple factors, including supply and demand, travel distance and ensuring drivers are compensated fairly. 

When pick-up points are very near to each other, its system "largely" keeps the variance in fares small, said Grab. 

"We will continue to keep working on ways to do so," said Grab.