Pick-up points near each other can have different fares if they are in separate ‘zones’: Grab responds to viral video

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

You can actually statement comes after the TikTok video about alleged discrepancies within Grab’s pricing design was widely circulated on social media. Several users claimed that fares were cheaper when they entered locations manually, as opposed to selecting the same destination from a list of saved locations.  

According to questions from CNA, Grab said that the differences in fares are not because of the Saved Areas feature in their application.

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

“Hence, pick-up locations which are near each other bodily can be in two different zones based on a demand and supply problems at any one time, thus resulting in different costs. ”

Grab said that the aim of the Saved Places function is to make it far 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 every time they book a ride.

With regards to fares, Grab said its pricing design balances multiple aspects, including supply plus demand, travel distance and ensuring motorists are compensated pretty.  

Whenever pick-up points are very near to each other, its system “largely” continues the variance in fares small, stated Grab.  

“We will continue to keep working on ways to do so, ” said Get.