Grab testing out a flat membership fee that will give riders ‘surge-free’ rates

SINGAPORE — Ride-hailing player Grab has devised another idea to tie down users: Guaranteeing fares without surge pricing for S$50 a month.

Called Grab FareLock pass, the idea is currently being tested on “a very small and select group of frequent Grab riders” to assess market demand, the company said, in response to TODAY’s queries.

Riders who buy the pass will still see fares with surge pricing — applicable when there are fewer available drivers than commuters, usually during peak hours or in rainy weather — at the time of booking. Grab will absorb the surge charges and refund the amount to users’ GrabPay accounts subsequently, meaning drivers will still get the full fares due to them.

The pilot, which started on Oct 16 and ends on Nov 14, allows users to use the pass with JustGrab, Grabshare, GrabCar, GrabCar premium, GrabFamily and six-seater vehicles.

While the promotions it regularly gives out help woo casual users, its latest idea could snare a lucrative segment of the market. For those who take taxis or private-hire vehicles to and from work, for instance, the S$50 price for the pass works out to under S$2 a day, based on a 30-day period.

Whether the pass will be introduced or if prices will be adjusted, however, have not been decided.

Grab’s main rival, Uber, declined to comment.

ComfortDelGro — which commands about 60 per cent of the taxi fleet here — has a flat-fare option for commuters. This flat-fare option is a charge based on the distance of the journey and existing surcharges so that those caught in jams do not pay more than what is stated on the app.

In March, five taxi operators — SMRT Taxis, Prime Taxi, Premier Taxis, Trans-Cab and HDT Singapore Taxi — teamed up with Grab to roll out JustGrab, a fixed-fare service subject to dynamic pricing.

Ms Cherie Loh, 24, found the price of the Grab FareLock pass to be steep, saying S$30 was more palatable.

“I think S$50 is a bit too (much) to pay, judging from how frequently I encounter surge prices,” said the business development associate. “Grab has also been dishing out promotion codes for its riders, so it helps to cover increased prices at times.”

Ms Sarah Chua, a frequent Grab user who has attained the highest member status of Platinum, also said it was unlikely she would go for the pass because she can still find good deals from other operators when surge pricing kicks in for Grab trips.


“Once in a while, I will pay the extra surge charges if I really have no choice. But that would at most be S$10 to S$15 extra a month, I don’t think it will go up to S$50 more a month,” said the 28-year-old account executive.