Grab to spare riders from cost of canceled orders

GRAB Philippines (Grab) is developing a new model to avoid “no-show” incidents in its food delivery service, the ride-hailing company said on Thursday.

“We are moving towards a system around August, ‘yun po ang ating (that’s our) target, whereby payment will not have to be advanced by the rider anymore,” Nicka Hosaka, Grab Philippines (MyTaxi.PH) public affairs manager, said during the hearing of the House committee on trade and industry.

“Moving towards August, we will be implementing this model whereby pagdating po sa (upon arrival at the) restaurant, the delivery-partner will not need to bring out any cash or pay any cash. He will simply pick up the order and the restaurant po already receives the payment straight via the app,” she added.

Currently, Grab’s system of food delivery requires the driver to advance the payment for the food ordered by a customer. The driver will then be paid by the customer after the food is delivered.

In case of no-show incidents, Grab has a 100% reimbursement process wherein riders are paid only after reporting cancellations of customers.

Ms. Hosaka said that the new system would provide a digital “driver wallet” amounting to P1,500 to P2,000 paid by Grab for delivery-riders.

“Meron tayong mine-maintain na driver wallet. So kung ano po ‘yung kokolektahin niya from the eater, ‘yun naman po ang made-debit sa kanyang wallet. If they’re not able to collect any payment from the eater or the customer dahil nagkaroon ng no-show incident, wala pong nababawas sa kanilang wallet,” she said.

(We are maintaining a driver wallet. What is to be collected from the eater will be debited from the wallet. If they’re not able to collect any payment from the eater or the customer because of a no-show incident, there will be no deduction from their wallet.)

“We are just reversing. It is already Grab who will advance it. One-hundred percent of the monetary liability will now be on Grab,” Ms. Hosaka added.

The committee was discussing House Bill 6958, which seeks to protect food delivery riders from cancelled orders.

The bill prohibits customers from canceling confirmed orders for the delivery of food and grocery items when the order has been paid by or is in the possession of the delivery rider, or in transit to the customer.

The measure also covers instances where customers order food and grocery items as a prank, which causes financial loss to the delivery riders and their service providers.

Violators are to be fined P100,000, directed to reimburse the value of the food and grocery items, and pay the service provider double the value of the canceled transaction.

The panel created a technical working group to further discuss the bill. — Genshen L. Espedido