Grab PH to shoulder 100% of advance payment, save riders from food cancellation woes

Image via Lemuel Rubo Lazada | Facebook
  • Grab will now shoulder advance payment for food orders starting August
  • This replaces the current scheme in which the rider pays first for food bookings
  • Riders will maintain a driver’s wallet where collectibles are deducted once the customer pays the order

The lockdown led to the rise of online food delivery channels like Grab. However, opportunistic individuals made it a venue for unacceptable behavior. We have heard a lot of stories of riders getting dismayed over canceled orders since they have already shelled out money to pay for the order.

Image via Owl City Cafe | Facebook

Finally, Grab has already found a solution to somehow prevent this from happening again. Starting August, Grab will shoulder 100 percent of the advance payment of orders instead of their riders. This was confirmed by Grab spokesperson and lawyer Nicka Hosaka during a meeting with the House Committee on Trade and Industry on Thursday, June 25.

“Moving towards August, we will implement this model whereby when the delivery partner reaches the restaurant, [he] does not need to bring out any cash or pay any cash. He will simply pick up the order,” Hosaka announced.

In this new model, the restaurant receives the payment via the app. The rider then picks the order. When it has been successfully delivered to the customer, the cash goes straight to the rider.

Image via Grabfood PH | Facebook

Riders will utilize a driver wallet where collectibles from customers will be taken from it. If the customer does not pay when he cancels an order, nothing will be deducted from the rider. Thus, the monetary liability will now be on the company.

In the current model, riders are fully reimbursed for canceled orders. However, not everyone opts to seek reimbursement because the process takes time and a lot of riders are on queue waiting for their refund.

Earlier, House Bill 6958 or Food and Grocery Delivery Services Act was created to protect riders from being victims of unnecessary food booking cancellations. Penalties include a minimum of 6 years imprisonment, Php 100,000 fine and reimbursement of food and delivery cost.