Recently on June 14th, 2016, Grab (formerly MyTeksi/GrabTaxi) announced a bold move where it will soon offer its first cross-border ride-sharing service — ’GrabHitch Johor Bahru-Singapore Inter-country Service’ (GrabHitch JB-SG for short). Grab said that this new extension to its GrabHitch service provides users of Grab an affordable way to commute between Johor Bahru and Singapore by way of carpooling, and thus, alleviating traffic congestion as a result, especially at the Tuas and Woodlands checkpoints. GrabHitch JB-SG rides were supposed to be charged, but right before the launch on June 20th, Grab revealed that there would be a three-week free pilot program, after paid cross-border carpool services are deemed illegal by Singaporean and Malaysian authorities.
The way GrabHitch JB-SG works is quite straightforward, just like the regular GrabHitch. Interested drivers need to sign-up and enter their usual route in the Grab app. The app will then match them with passengers who are looking to travel to a similar destination. Passengers can book a ride up to seven (7) days in advance, right until 30 minutes before pickup time, by selecting both pickup and drop-off points. Fare for GrabHitch JB-SG was calculated based on the distance of a particular ride, plus a fixed cross-border surcharge. Just like the GrabCar service, the fares are shown upfront for transparency. Rides was supposed to be charged in the currency of the country where the pickup took place. Below are some example GrabHitch JB-SG fares, before it went free (more on this later). Interested drivers (18 years old and above) can already sign-up to be a GrabHitch JB-SG driver from June 13th onwards, but passengers can only book a ride beginning June 20th.
During the launch on June 20th, Grab decided to drop the fare after it was deemed illegal by Singapore. GrabHitch JB-SG was free during its three-week pilot program. Under Section 101 of the Singapore Road Traffic Act, drivers caught using a foreign-registered motor vehicle ferrying passengers for hire without a public service vehicle (PSV) license, can be fined up to SG$3,000 (~RM9,046.37), or jailed for a term not exceeding six (6) months, or both. Likewise, Singaporean-registered cars are also not permitted to ferry passengers for hire in Malaysia, without a PSV license.
Update (July 30th): Though the fare-free GrabHitch JB-SG pilot program concluded on July 24th, 2016, the service continues to be running. To skirt around legal troubles, passengers are still not required to pay a fare for the cross-border service, but drivers “would appreciate a gratuity” to cover some of the costs. Grab said it is continuing to engage with the Singaporean Land Transport Authority and the Malaysian regulatory authority for a “long-term solution”. Passengers were supposed to be able to pay either by cash, or by credit/debit card, but until the service is allowed by both governments, the “gratuity” has to be paid by cash.
The recently-launched GrabHitch itself is still in beta, which is another way to say it still doesn’t have many drivers available. Unlike GrabCar, GrabHitch is a true ride-sharing service where regular drivers like you and I can sign-up to pick up passengers that share similar routes or destinations. GrabHitch JB-SG promises that both drivers and passengers get to pay less for their daily commute, while in the process, meet new friends, enjoy the safety standards of Grab, and benefit from the comfort of a point-to-point transportation. Grab shared that by estimations from the Malaysian Immigration Department and the Singaporean Immigration & Checkpoints Authority, around 400,000 commuters pass through Tuas and Woodlands checkpoints daily. This high number persists despite expensive toll rates and frequent traffic congestions, as most commuters prefer the convenience of a door-to-door ride. Grab has also conducted a survey of JB-SG commuters, and found that 88% of them are open to carpooling between the two neighboring countries’ cities. This is reflected on the other portion of the survey where 89% of drivers are willing to carpool with other passengers. No surprise here; the biggest motivation for their decision is for cost-sharing and cost-saving reasons.
Ngiam Xin Wei, the head of GrabHitch, commented on the lack of a door-to-door transportation between JB and SG, “At Grab, we are always exploring commuting solutions that will improve the existing transport ecosystem. The high cost of travelling, frequent congestion, and lack of point-to-point transportation between Johor Bahru and Singapore are compelling reasons for us to introduce the GrabHitch JB-SG service. GrabHitch JB-SG enables us to out-serve our customers by providing them with affordable door-to-door rides that will make travelling across the border much more convenient, comfortable, and cost-efficient. More importantly, ride-sharing promotes a car-light society which will lead to reduced traffic congestion and a better travel experience for all.”
GrabHitch continues to operate as a paid service within Malaysia and within Singapore. You can read more about the Malaysian launch of GrabHitch here.
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