Tuesday, 26 September 2023

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ComfortDelGro announces platform fee increase of S$0.70 for app bookings

SINGAPORE — ComfortDelGro, Singapore’s largest taxi operator, has announced a new platform fee of S$0.70 for rides booked via their CDG Zig app, effective from 1 July.

This increase will also apply to limousine transfers made through the app. The move aims to fund service enhancements, as detailed in a Facebook post made by the company on Monday (19 Jun).

The operator has been progressively improving the CDG Zig app by adding various features, such as merchant deals, restaurant reservations, food takeaways, electric vehicle charging points, and private bus charters.

The additional fee aligns with similar charges applied by other ride-hailing platforms in Singapore. An email from Grab to its customers indicated that the new platform fee is necessary for the progression of ongoing app enhancements, focusing on safety functionalities, amplified dependability, and benefits for drivers.

Gojek, another ride-hailing company in the market, imposes a similar platform fee of S$0.70 per ride. Meanwhile, TADA, another competitor, levies a platform fee of S$0.55 before Goods and Services Tax (GST) for fares below S$18. For fares exceeding S$18, the fee rises to S$0.75 before GST.

The ride-hailing industry is grappling with a shortage of drivers. Grab noted that the current demand for rides significantly outpaces the number of available drivers, resulting in longer waiting times and fare instability. In response, the company plans to introduce new measures to alleviate these issues.

However, the fee increase has been met with public displeasure. Users expressed their concerns via comments on ComfortDelGro’s Facebook page.

One user criticised the functionality of the new app, highlighting a privacy issue where they remained linked to a driver’s movements even after a trip had ended.

Another user bemoaned the low success rate of their booking attempts on the Zig platform, compared to other ride-hailing services. “Out of every 10 bookings I’ve tried to make via Zig, only an average of 2 bookings were successful,” the user wrote.

The third user commented on the potential impact of the price increase on consumer behaviour, noting, “End of the day, the customer still will compare. Whichever company offers the cheapest ride will get the business. After 70ct more, people will go for Grab, Gojek or other operators.”

More details about the new platform fee will be made available on the ComfortDelGro website.

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