Consumer protection authority asks Grab to explain 'hot weather' surcharge

The Vietnam Competition and Consumer Authority has asked Grab Vietnam to clarify its charges and surcharges by July 18 as the ride-hailing company applied “hot weather” surcharges starting July 6.

The Vietnam Competition and Consumer Authority has asked Grab Vietnam to clarify its charges and surcharges by July 18 as the ride-hailing company applied “hot weather” surcharges starting July 6.

A Grab Vietnam service rider on street. Photo courtesy of VOV.

Grab Vietnam announced last week a “hot weather” surcharge of VND5,000 ($0.21) for each time its Grab Bike, Grab Food, and Grab Mart service is used, and VND3,000 for one Grab Express serve.

The firm also applies other surcharges, including “heavy rain”, “traffic jam”, “waiting time”, “night trip”, and “Tet holiday.” Tet is Vietnam’s Lunar New Year festival and longest holiday of the year.

The nation’s consumer protection authority (VCCA), under the Ministry of Industry and Trade, has demanded that Grab clarifies all of its charges, surcharges, calculation formulas, and the split of benefits between the company, its drivers and other associates.

According to the Vietnam General Confederation of Labor, Vietnam currently has about 200,000 people who drive motorbikes for ride-hailing services, half of them in Hanoi and Ho Chi Minh City.

Grab has stated that it aims to become a super-app with services beyond ride-hailing.