Grab plans to increase platform fee per ride to S$0.70 to combat driver shortage

Grab plans to increase platform fee per ride to S$0.70 to combat driver shortage

SINGAPORE — Grab, the ride-hailing firm, has disclosed its intention to raise the platform fee per ride to S$0.70 (US$0.53) beginning 5 May, as stated in an announcement on Friday (14 April). Currently, this fee stands at S$0.30.

In an email sent to its customers, Grab indicated that the modification aligns with the platform fees imposed by other ride-hailing platforms in Singapore, and it will apply to all categories of Grab’s transport services.

Grab stated that this move will aid the progression of ongoing application enhancements such as safety functionalities, amplified dependability, and advantages related to drivers.

Gojek, a competing ride-hailing company, levies a platform fee of S$0.70 for each ride. On the other hand, TADA, another ride-hailing firm, applies a platform fee of S$0.55 before Goods and Services Tax (GST) on trips with fares below S$18. For trips with fares above S$18, the platform fee is S$0.75 before GST.

Grab remarked that the ride-hailing sector is experiencing a dearth of drivers, as the demand for rides is much higher than the number of available drivers. As a consequence, waiting periods have increased, and fares for passengers have become more unstable than desirable. To address this issue, Grab declared that they are introducing new measures to alleviate the situation.

Grab has disclosed that it is taking steps to address the shortfall of drivers. The company has reintroduced GrabShare, enabling two passengers travelling in the same direction to share a ride and receive reduced fares. Additionally, Grab is expanding its driver recruitment efforts through novel initiatives.

Furthermore, new “technology-driven features” have been implemented to enable Grab’s drivers to “work more efficiently and cater to a larger number of passengers.” One of the features includes a tool that provides drivers with information on areas experiencing high passenger demand.

However, many commented on social media, saying that Grab’s price is too high.

One wrote, “Already Grab is so expensive, now increase further. Actually, it is good for Taxi drivers and other hailing platforms. More opportunities for them. The reason why people use Grab service is that it was affordable before but now it’s no longer the case. We need to learn to take public transport by leaving early. Actually, it’s not that difficult. Teach the greed Grab boss a lesson.”

Some also said that the performance of the riders is still very poor.

A commenter wrote, “I don’t book taxis or cars from Grab anymore because a driver refused to take my family in his Grab after we booked it in heavy rain. Because we had kids and he said NO KIDS and drove off.”

Another commented, “Grab is my last resort. Had a bad experience with the driver smoking in the car then using very strong deodorant to cover the smell. Also once the driver informed me wrongly regarding grab assist and grab assist plus. The difference in the price is huge. Most drivers are ok but there is no consistency and hence no guarantee.”

In another post on the increase, a commenter wrote, “I use Comfort Delgro app. Grab drivers are too fussy and they like playing with their terms & conditions. This can’t that can’t. Sometimes I’d rather pay more for Gojek or Delgro. Grab food self-pick discount is bull also. Prices are marked up first then 20% off. No difference or even more expensive as compared to buying from the store directly.”

Subscribe
Notify of
16 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments