Grab to increase all service fares

Ride-hailing giant Grab will raise all fares from March 10, the first tech-based transport firm to do so amid record-high gasoline prices.

GrabCar’s first two-kilometer fare will be raised by VND2,000 ($0.09) to VND29,000 for four-seater and VND34,000 for seven-seater vehicles in Hanoi and Ho Chi Minh City.

That of each subsequent kilometer will be VND10,000, up VND500.

GrabCar fares in other cities and provinces will also be increased by VND2,000-2,500 for the first two kilometers, and VND600 for each subsequent kilometer.

For its bike ride-hailing and delivery services, the giant’s fares will go up to VND12,500-13,500 for the first two kilometers and VND4,300 for each subsequent kilometer.

The tech-based transport firm cited surging gasoline prices as a reason for the adjustment.

Gasoline prices in Vietnam hit the all time high of VND26,830 per liter for popular RON 95 and VND26,070 per liter for biofuel E5 RON 92 last Tuesday, after authorities adjusted them upward for the sixth time in less than three months.

The last time Grab increased its fares was at the end of 2020, after authorities raised value-added tax for tech-based transport services from 3 percent to 10 percent.

Taxi firms expect to increase their fares if gasoline prices stay at the current all-time high.