Commentary: Can private-hire firms ride out commuter frustration over fare surges, shorter grace period and longer waiting times?

MOTORISTS ARE IN SHORT SUPPLY

In the private-hire transportation field, where all the ride-hailing companies are competing meant for drivers, the lack of drivers is really a perennial issue.  

Rising petrol prices and operational costs have made traveling for ride-hailing companies less attractive. The solid job market and dropping unemployment rate are compelling more drivers to select a full-time purpose of income stability rather than driving for ride-hailing companies earning an uncertain income. Both of these factors have further compounded the driver shortage issue.

Transport Minister Ersus Iswaran said within Parliament earlier this 30 days that since The month of january 2020, the number of energetic taxi and private-hire car drivers provides fallen by 18 per cent to regarding 57, 000 motorists as of June 2022.

On the other hand, with the easing of COVID-19 measures and increased social activities, need for private-hire transport has increased drastically, with daily point-to-point travels increasing by thirty, 000 in June compared with February.

To meet demand, ride-hailing companies are implementing initiatives to attract a lot more drivers. Companies also need to resort to surge pricing, which leads to higher fares intended for passengers, especially during peak hours.

Grab’s new waiting around time policy could be another attempt to support and retain the existing active motorists while also tempting new drivers to join the company.

Yet other ride-hailing services such as Gojek, Ryde, TADA and ComfortRide also have cancellation plans, and they might eventually jump on the bandwagon to implement the shorter waiting period grace period in order to attract drivers.