Are Thailand’s ride-hailing drivers disappearing?

[webfact]

File photo

 

OPINION | by Michael Bridge

 

The cost of living is certainly starting to bite, and it is especially hitting the ride-hailing industry.

There have been many posts in recent weeks about drivers quitting as they cannot afford the rising fuel costs.

The only drivers who are coping are the owners of the few EV cars in Thailand, as they see the skyrocketing fuel prices.

However, in 2020, the total accumulated number of electric vehicles in Thailand was just 186,271 units, so only a few are currently able to avoid the fuel pump price rises.

Meanwhile, people who were used to paying THB26 a litre for E20 to fill up the petrol-driven vehicles are now having to fork out a massive THB44.89.

Not only is this affecting the private motorists, but now it is also hitting the taxi drivers and the ride-hailing drivers like Grab as well.

Taxi drivers are seeing their profits tumbling too.

Some say taxi fares are still cheaper for trips that take about 30 minutes, compared to what is offered by Grab over the same duration. 

Besides the higher price now, many passengers are also concerned about their safety as not all Grab drivers display their details properly on the app.

On some occasions particularly outside Bangkok, having a Grab ride could be cheaper than having a regular taxi ride, but on average Grab will cost you more than a regular taxi.

However, in the past Grab was convenient as they came to your home or office.

 

Why is it so hard to book Grab now?

With the current crisis, more drivers are re-considering whether it is worth remaining a ride-hailing driver.

 

On average, the number of people who request Grab cars in Bangkok has almost doubled to 600,000 bookings every day. 

 

Unfortunately, the number of available drivers has however decreased from 43,000 to just 35,000. 

 

This means that there are 8,000 fewer cars every day to meet riders' needs.

 

The problem is Asian wide

 

On Facebook groups set up by ride-hailing drivers in Vietnam, there have been many posts in recent weeks about drivers quitting as they cannot afford the fuel costs.

There the RON95 gasoline has risen by 39 percent this year, and many customers have been complaining of a shortage of drivers and rising fares.

One driver said he used to earn VND600,000 ($25.83) a day after fuel costs, but now he makes only VND400,000.

Ride-hailing drivers in Hanoi have seen their income drop by a third.

Customers have been complaining of a shortage of drivers and rising fares.

Grab said its customers could have difficulty booking in certain locations and it is trying to increase the number of drivers.

But surprisingly no company has said it would cut its commission rate.

Transport associations across Asia have pleaded for cuts in gasoline taxes and suspension of the value-added tax for six months to help them survive the challenging period.

Seems governments need to act soon, otherwise we will all need electric motorbikes to get around!

 

 

-- © Copyright  ASEAN NOW 2022-06-24

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Easiest way to own or rent a car in Thailand - click here to find out more!

 

Get your business in front of millions of customers who read ASEAN NOW with an interest in Thailand every month - email [email protected] for more information

[Uroller]

I stopped using Grab over a year ago as their rates were getting crazy, surcharge on surcharge, hope Grab goes out of business, that’s what greed does ????????????

[RandiRona]

Yes they are expensive that normal Taxis but convenient and safe. I see no issues with Grab but Bolt has always been hit and miss for me. They cancel on me far more than Grab.

I dont take Taxis no more, getting driver to focus on road while using his phone plus taking me for a ride is too much aggravation for me.

[Skeptic7]

Predominantly use BOLT with an occasional GRAB. Haven't yet been unable to get a BOLT but sometimes wait times are long. If too long, I cancel and go for GRAB, which is usually readily available (at a higher price of course).

[10baht]

5 hours ago, webfact said:

Meanwhile, people who were used to paying THB26 a litre for E20 to fill up the petrol-driven vehicles are now having to fork out a massive THB44.89.

Green Green pay the machine. If the world ,not just Thailand , actually mostly the EU and the USA, had not vilified  big oil for all the wrong reasons and had created a reasonably workable transition plan we would not be in this high cost for fuel situation. And transition is not my choice of words, it's Green speak. It should have been an enhancement energy plan. And if you don't see it coming like you didn't see this, just wait for when all the EV's have to pay for electricity at the new Green rate + in the USA, no more subsidies and actually having to pay taxes of some sort to replace the taxes not collected because less gas is being sold.

[bkk_mike]

21 minutes ago, 10baht said:

Green Green pay the machine. If the world ,not just Thailand , actually mostly the EU and the USA, had not vilified  big oil for all the wrong reasons and had created a reasonably workable transition plan we would not be in this high cost for fuel situation. And transition is not my choice of words, it's Green speak. It should have been an enhancement energy plan. And if you don't see it coming like you didn't see this, just wait for when all the EV's have to pay for electricity at the new Green rate + in the USA, no more subsidies and actually having to pay taxes of some sort to replace the taxes not collected because less gas is being sold.

And that's when you switch to charging your car from your solar panels.

 

They might then introduce road pricing, where you pay for the miles they detect you drive - but do you ever think they'll charge EV drivers MORE than fossil fuel cars when they do that...

[mikebell]

If petrol is so expensive, why do Thai drivers empty their tanks to get one place ahead of you at the next red light?

[10baht]

7 minutes ago, bkk_mike said:

And that's when you switch to charging your car from your solar panels.

 

They might then introduce road pricing, where you pay for the miles they detect you drive - but do you ever think they'll charge EV drivers MORE than fossil fuel cars when they do that...

When the sun doesn't shine on you "free" solar panals? Yes, governments are money addicts.

[daveAustin]

Just hope the scumbag Phuket taxi mafia is feeling the pinch most! ????

[Train]

As the country revolves Bangkok other areas will be hit harder.  Phuket and it notorious taxi mafia and the insane pricing was a welcome sign to grab and other car sharing providers.  Still not as cheap as Bangkok but far more in line.  Hoping that the higher rates in Phuket is enough to keep these ride share providers in business. 

[Excel]

12 minutes ago, mikebell said:

If petrol is so expensive, why do Thai drivers empty their tanks to get one place ahead of you at the next red light?

Stupidity and ignorance of fuel economy.  Well just the first one covers all really.

[Sydebolle]

Go and have a look how Europeans shuttle around. 

Good, very good if not close to perfect public transport is being complemented with taxi services which avoid empty sectors as much as possible. Back in the day you would call the taxi company to ask for a cab; the phone operator went onto the wireless (radio), announced the ride and the nearest free cabbie would pick-up the order. 

Meanwhile that has changed, you still phone up but the operator keys in the data and the nearest free driver picks up the fare. Grab/Uber/Bolt and what-else-you-may-have went a step further and handles this without operator. 

But for years Grab was illegal to keep the "interests" of those who run the cab services in Bangkok, the government dictates fares on taxis which they do not take anyway (as they ride in chauffeur-driven vehicles provided for by the state?). 

The present picture reflects and incomplete, inadequate, inconvenient and overloaded public transportation network which results in ........ taxi needs. The providers of the latter have a problem with the ridiculous low fares and the operators "system" of changing shifts at 3pm (just in case you tried to hail down a cabbie at 2.30pm almost anywhere in Bangkok - when the drivers are heading back to turn in the vehicle to the next shift). 

Get the governmental fingers out of this cookie jar as well and just let them keep an eye on the physical condition of the vehicle and the licensing of the driver .........

[Pedrogaz]

I thought most taxis used either LNG or CNG. Whenever taxis have needed fuel when I have been in them, it is always nat gas, never petrol or diesel.

[hotchilli]

7 hours ago, webfact said:

There have been many posts in recent weeks about drivers quitting as they cannot afford the rising fuel costs.

Customer base will always dictate the number of taxis required.

Price and service will dictate which ones they will be.

[Johnnyngai]

" But surprisingly no company has said it would cut its commission rate. "

 

        That is the biggest reason.  

[Flink]

2 hours ago, Skeptic7 said:

Predominantly use BOLT with an occasional GRAB. Haven't yet been unable to get a BOLT but sometimes wait times are long. If too long, I cancel and go for GRAB, which is usually readily available (at a higher price of course).

Lucky you, where I am we have neither. We did have 1 Grab driver up until a year ago but she has now stopped. (I don't think she stopped because of fuel costs but because too many customers complained about her unreliability. Last ime I tried to use her I booked a ride for 7.00am next day. When she didn't turn up I tried contacting her and finally got a reply at 7.30 where she told me she'd be with me as soon as she had finished her breakfast!)

[Burma Bill]

8 hours ago, webfact said:

we will all need electric motorbikes to get around!

Oh dear!!  For reference only (22 June 2022):-

 

A tower block fire in west London......................... was started by an electric bike battery malfunctioning as it charged.

.................... the fire started in his guest bedroom where his friend......................................had been charging an e-bike battery (Lithium)

https://www.bbc.com/news/uk-england-london-61880383

• Large blaze in Shepherd’s Bush high-rise yesterday was caused by failure of ebike lithium-ion battery

https://www.london-fire.gov.uk/news/2022-news/june/shepherd-s-bush-high-rise-fire-caused-by-e-bike-prompts-safety-warning-from-firefighters/

[Eaglekott]

3 hours ago, Uroller said:

I stopped using Grab over a year ago as their rates were getting crazy, surcharge on surcharge, hope Grab goes out of business, that’s what greed does ????????????

I make sure to always use the option "Grab Taxi" and not "Grab Car" or "Just Grab". With Grab Taxi you get meter plus 20 baht. They start the meter after they have picked you up. By far the cheapest option and price is mostly lower that the lowest price estimate in the app. Always licensed drivers. I also has it connected to my Credit card so do not have to bother about cash. Most drivers also upfront the highway fee for you in case you go through a pay toll. Some ever use Easy Pass.

 

Much cheaper than all "fixed" price apps like Bolt that tend to sky rocket the price if there is a high demand.

[Pattaya Spotter]

The world can thank President Biden and his administration's oil sanctions policy response to the Ukraine conflict for record setting petroleum prices; making Russia richer (and the Ruble the strongest currency in the world) and the rest of the world poorer. He basically took a loaded shotgun and pointed it at his face and said: "Take this Russia!"

 

Edited June 24, 2022 by Pattaya Spotter

[Peabody]

1 hour ago, Pattaya Spotter said:

The world can thank President Biden and his administration's oil sanctions policy response to the Ukraine conflict for record setting petroleum prices; making Russia richer (and the Ruble the strongest currency in the world) and the rest of the world poorer. He basically took a loaded shotgun and pointed it at his face and said: "Take this Russia!"

 

Nope. Try oil company's' profits

[Orinoco]

4 hours ago, mikebell said:

If petrol is so expensive, why do Thai drivers empty their tanks to get one place ahead of you at the next red light?

Then forget to move forward when the lights are green.

( playing with phone, drinking, eating, chatting)

And when they do move it's at a snails pace !!!!!!!!!!!!!

What a laugh driving and riding in Thailand is.

But it's just all part of the deep rooted selfishness of Thai

culture.

Me ,Me, Me and more Me.

 

Ps Ah feel better now, must be beer o'clock.

 

 

 

 

 

 

Edited June 24, 2022 by Orinoco

[Lemsta69]

22 minutes ago, Orinoco said:

Then forget to move forward when the lights are green.

( playing with phone, drinking, eating, chatting)

And when they do move it's at a snails pace !!!!!!!!!!!!!

What a laugh driving and riding in Thailand is.

But it's just all part of the deep rooted selfishness of Thai

culture.

Me ,Me, Me and more Me.

 

 

 

 

been doing a fair bit of riding in taxis here in Bangkok. Thai drivers are fine. sounds like you need a break from the place, need help with a ticket out? 

 

ps. I'm from Sydney in case anyone wants to have a go.

Edited June 24, 2022 by Lemsta69

[Lemsta69]

4 hours ago, Pedrogaz said:

I thought most taxis used either LNG or CNG. Whenever taxis have needed fuel when I have been in them, it is always nat gas, never petrol or diesel.

maybe taxis use gas but private vehicles are most likely petrol. well that's my assumption anyway.

[Orinoco]

6 minutes ago, Lemsta69 said:

 Thai drivers are fine.

Best post 2022.

Outstanding. 

[Lemsta69]

4 minutes ago, Orinoco said:

Best post 2022.

Outstanding. 

they don't do anything that Sydney drivers don't do. if anything the majority of them are more cautious than Sydney drivers. you're the funny one champ, not me.

[Lemsta69]

I'll only be using Bolt or Grab now if I'm desperate. 30% commission is highway robbery. I've had good results here in Bangkok with regular taxis so I'll stick with them for now. except in rush hour then it's BTS or motosai.

[Orinoco]

12 minutes ago, Lemsta69 said:

they don't do anything that Sydney drivers don't do. if anything the majority of them are more cautious than Sydney drivers. you're the funny one champ, not me.

Sydney.

I thought maybe Maralinga. 

[zzaa09]

3 hours ago, hotchilli said:

Customer base will always dictate the number of taxis required.

Price and service will dictate which ones they will be.

Exactly. Let the marketplace [the consumer population] determine what is and what isn't....naturally. 

Unfortunately, we prefer and almost expect the government intrusion and say so towards most everything.

[joecoolfrog]

2 hours ago, Pattaya Spotter said:

The world can thank President Biden and his administration's oil sanctions policy response to the Ukraine conflict for record setting petroleum prices; making Russia richer (and the Ruble the strongest currency in the world) and the rest of the world poorer. He basically took a loaded shotgun and pointed it at his face and said: "Take this Russia!"

 

Rarely see a post where every point made is simplistic nonsense , well done !!!

[Olmate]

1 hour ago, Lemsta69 said:

been doing a fair bit of riding in taxis here in Bangkok. Thai drivers are fine. sounds like you need a break from the place, need help with a ticket out? 

 

ps. I'm from Sydney in case anyone wants to have a go.

Who owns the pub there nowadays?