Amid rising oil prices, Grab Philippines to extend P25-M conditional assistance to drivers

MANILA, Philippines — Ride-hailing giant Grab Philippines announced it would be handing out a performance-based assistance fund worth P25 million designed to support its fleet of drivers and couriers as the burden of oil prices grows heavy.

As it is, local pump prices rose to new heights this week as global crude oil prices breached the $100 per-barrel mark due in part to Russia's invasion of Ukraine.

"The economic challenges that we are experiencing require a longer-term solution from all sectors of our society. We are optimistic that through our efforts, we are inspiring more platforms, businesses, and organizations to step forward and take on this enormous task of advocating for their stakeholders during these challenging times," said Ronald Roda, Grab Philippines senior director for strategy and operations.

In a statement on Friday, Grab Philippines said couriers and drivers will be able to tap into the conditional P25-million assistance fund by way of completing performance-based incentives and other partner support programs, but did not elaborate on the specific goals since the company is "currently monitoring the situation on the ground and constantly tailoring it."

Instead, the ride-hailing giant said the incentive program, which they said is not a dole out, will only benefit drivers who will take the road.

"It’s not like cake you slice evenly for everyone. You have to proportion to what is being done," Grab Philippines said.

No fare hikes, for the moment

Grab Philippines has not raised fares for its services but said they have initiated talks with regulators on the matter. 

The public transport sector has threatened it would hold strikes to protest oil price hikes this week and push the government to suspend excise taxes on fuel.

For its part, the transportation department has released P2.5 billion worth of fuel subsidy for the transport sector. The subsidy will amount to P6,500 for each of the 377,433 beneficiaries, which include jeepney, taxi and UV Express drivers.

In the short term, the prospects of pricey fuel could compel consumers to rethink whether they should venture out, which the firm is aware of.

"Because of the rising costs of fuel, it may lead to people not bringing their own cars when they go out and possibly rely on public transport or ride-hailing - not so much in terms of them totally not going out. At the moment, we are doing our part to help in this challenge but platforms cannot do this alone as well," Grab Philippines added.

Aside from the fund, Grab Philippines is extending a zero-interest loan program for fuel purchases to its drivers and couriers through Grab Finance Shell Fuel Card, which the firm said couriers could avail one week worth of fuel.