Grab to hike ride-hailing prices in Vietnam

Grab is set to raise prices for its ride-hailing services in Vietnam from March 10 – the first of its kind since 2020 – as the super app looks to keep up with rising fuel prices in the country.

Ho Chi Minh City, Vietnam – September 27, 2018: Grab driver on the streets of Ho Chi Minh City, otherwise known as Saigon

The company will raise prices of its GrabCar services in Ho Chi Minh City and Hanoi by 2,000 Vietnamese dong (US$0.088). Currently, GrabCar charges US$1.27 for the first two kilometers in four-seater vehicles, and US$1.49 for seven-seater vehicles. After that, the service costs US$0.022 per additional kilometer.

In other cities, GrabCar will hike the fare for the first two kilometers by between US$0.088 and US$0.11, while the fare for each additional kilometer will be hiked by US$0.026.

The increase in fares comes amid a rise in fuel prices in Vietnam. Petrol prices hit a new record of nearly US$1.18 per liter last week after authorities raised them for the sixth time in a row.

Meanwhile, fares for the company’s GrabBike services will be raised by US$0.55 to US$0.59. Each additional kilometer will be charged at US$0.19.

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“We hope to help our driver and delivery-partners to defray higher operating and living costs resulting from rising fuel prices and fluctuating consumer price index with this move,” a Grab spokesperson told Tech in Asia.

In December 2020, Grab Vietnam came under fire from both drivers and tax authorities after the ride-hailing firm hiked fees for GrabCar and GrabBike by 5% to 6%. It also raised its take rate to nearly 30% for GrabBike drivers and more than 30% for GrabCar partners.

Grab posted a 9% drop in its revenue for the third quarter of 2021 on the back of a decline in its mobility business due to severe Covid-19 lockdowns in Vietnam.

Currency converted from Vietnamese dong to US dollar: US$1 = 22,837.50 Vietnamese dong