Grab allows users to cancel rides for free, but there’s a catch

Starting 11 March, Grab users can cancel rides for free within five minutes after booking.

According to Grab’s policy update, the Singapore-based company changed its cancellation policy due to the fact that there are many reasons why users cancel a ride such as entering wrong pick-up or drop-off point. Users can cancel the ride within five minutes for GrabCar and three minutes for GrabShare with no charge.

That’s the good news, now for the bad news, users will be charged SGD 4 (3 USD) for cancelling their rides after the time limit.

Currently, users can cancel up to two rides for free within seven-day period, after which a charge of SGD 5 (USD 4) will be imposed for each cancellation.

Drivers can also cancel rides after accepting. Upon arrival, drivers will wait for up to 5 minutes or 3 minutes on GrabShare after which they can cancel their rides. Users who booked the ride will be charged SGD 4 for not showing up on time, which Grab said “will be passed on to drivers for their effort and time”.

“All cancellation charges will be deducted via GrabPay, or added to (the user’s) next ride if (he or she) paid by cash,” the company added.

For each booking, users may be charged SGD 4 for late cancellation or SGD 4 for not showing up on time, but not both at the same time.

Cancellation fees will also be waived if drivers arrive after the estimated time of arrival by more than five minutes. For example, if the user was allocated a driver who is 3 minutes away, but waited for more than eight minutes.

The changes will apply to all Grab transport services except for GrabHitch, GrabShuttle and GrabShuttle Plus.

Grab expects this policy update to affect less than 1% of bookings, as the majority of passengers do not change their minds after booking.

Grab said in a statement: “The improved cancellation policy will allow passengers more flexibility while ensuring that we are fair to our driver-partners. We are constantly looking for ways to improve our platform, and this is one of the ways.”

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