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Grab PH revamps earnings structure for delivery riders amid sticky inflation

Metro Manila (CNN Philippines, October 25) — Grab Philippines, a dominant ride-hailing company that has expanded to delivery services, has updated its commission scheme to provide more competitive profits to its delivery riders amid nagging inflation woes.

According to Grab, the release of the new earnings structure came after conducting a two-month pilot program involving select delivery-partners.The firm said Wednesday that the new system would not solely rely on distance-based compensation, as their rates would also be considered on longer wait times at merchant outlets.Previous model offered a fixed base fare, often not reflective of the actual effort involved in each delivery task. The new system addresses this imbalance, ensuring fairer compensation,” Grab said.Checking on the Grab mobile application, a user may pay from ₱35 to more than ₱150, depending on the time and delivery distance from the consumer.Grab, however, did not specify how much exactly a delivery rider earns from each trip. The company has also rolled out a guaranteed minimum fare to ensure its delivery rides “earn substantially above the minimum wage.On top of these, Grab said it continues to provide incentives, rewards, and benefits.Its delivery-partners staged a protest in Quezon City last week, saying they were operating at a loss, as they called on Grab to improve its incentives for riders.In an earlier Facebook post, the National Union of Food Delivery Riders called on other riders to join in their calls for better fees.Grab Philippines Chief Operating Officer Ronald Roda, meanwhile, said the group continues to explore ways to ensure “a mutually beneficial ecosystem” for Grab and its partners.

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