Grab to roll out fresh earning structure to delivery riders

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MANILA — Grab Philippines on Wednesday said it will implement a new earning structure for delivery riders, and address long-standing problems that they face on the platform. 

In a statement, Grab said the fresh set of guidelines came amid an “evolving macroeconomic landscape,” and was also aimed to help Grab partners “experience improved overall well-being and job satisfaction.” 

The local ride-hailing and food delivery app said under their new model, riders would be compensated for longer wait times at merchant outlets. Fares for long-distance pick-up would also be adjusted. 

Minimum fare will also be guaranteed for every order, said the firm. The company said the 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,” the statement read. 

“The revamped earnings model introduces critical changes, moving beyond mere distance-based compensation. It now factors in the totality of effort exerted by delivery partners,” it added. 

Grab said its incentives, rewards, and benefits programs would continue. It was also committed to making sure riders would “continue to earn substantially above the minimum wage.”

“These programs are designed to complement direct earnings, contributing to a comprehensive financial support system for partners,” based on the statement. 

The new model also aims to adapt to the consumers’ evolving behavior and the relevant macroeconomic shifts, said Ronald Roda, Grab Philippines’ chief operating officer. 

“This move goes beyond transactional interactions, touching lives and empowering thousands of delivery partners across the Philippines by providing more equitable earnings, stability, and growth potential,” said Roda. 

“As we continue to serve the needs of every Filipino, our focus remains steadfast on nurturing a mutually beneficial ecosystem where both Grab and our partners can thrive together.” 

OTHER MATTERS

Meanwhile, Grab said solutions were underway to solve long-standing issues of riders spending longer time in stores to wait for orders.

It was also enhancing digital tools, such as merchant tagging and location pinpointing, to better forecast time accuracy and prevent order delays This will let its partners help get more orders and increase earnings. 

“Grab’s tech team has intensified their backend efforts, refining algorithms and enhancing the merchant-partner interface to ensure pinpoint accuracy in merchant details and geotagging,” the statement read. 

“These technical enhancements mean partners can trust the platform to direct them accurately, making their workday less stressful and more rewarding,” it added. 

Grab’s Driver Rate Consumer mechanism was also “revitalized,” it said, noting that they hear the plight of their partners.

This means delivery riders will be able to share immediate, real-time feedback on various issues, may it be on customer interactions and routes.

“By constantly optimizing the platform experience, Grab reaffirms its pledge to elevate the experience of every delivery-partner on its platform, creating a harmonious ecosystem that’s beneficial for all.” 

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