ComfortDelGro to introduce temporary charge for app bookings amid rising fuel prices
The S$0.50 to S$0.80 fee per booking will go directly to drivers, says ComfortDelGro.
A view of ComfortDelGro's logo. (Photo: ComfortDelGro)
This audio is generated by an AI tool.
SINGAPORE: ComfortDelGro will implement a temporary "driver fee" for bookings made through its CDG Zig application as fuel prices continue to climb, it said on Tuesday (Mar 17).
The move is aimed at easing the financial strain on drivers brought about by the rising fuel prices, it said.
In a statement, Singapore's largest taxi operator said that the driver fee will be S$0.50 (US$0.39) for fares below S$15 and $0.80 for fares of S$15 and above.
A temporary S$0.01 increase to the distance time rate for all metered trips will also be introduced.
"All of these fees will go directly to our drivers," said Mr Michael Huang, head of ComfortDelGro's Singapore point-to-point mobility business.
Earlier in March, ComfortDelGro said that it would absorb a portion of the increased fuel costs at its pumps to cushion the impact of fuel price increases on drivers.
An ongoing taxi fuel credit incentive programme was also introduced on Sunday to bolster support for drivers.
The driver fee and meter fare increase will be in effect from Mar 24 to May 31.
"We will continue to monitor the situation closely and remain committed to ensuring operational stability for our partners during this volatile period," said the taxi company.
Executive secretary of the National Taxi Association Teo Siew Pan said: "The fuel price increases due to the ongoing international conflict are causing stress on our taxi drivers. The driver fee, the increase in metered fares, and Zig by ComfortDelGro's partial absorption of fuel costs at their pumps will give drivers more direct support with each trip they make.
"We hope this helps them sustain their livelihoods through this period."
In response to CNA queries, Gojek said that it has maintained its driver fees, which were introduced in 2022 when prices hit similar highs.
The fees, which are S$0.50 for trips below 10km and S$0.80 for trips above 10km, have "been maintained and continuously renewed since then, even after fuel prices moderated", Gojek said.
"We are closely monitoring developments in the Middle East and the potential implications for global oil and energy prices," it added.
"As always, we remain committed to working closely with all stakeholders to ensure we continue to provide reliable and affordable services for everyone."
Fuel prices in Singapore have risen since the start of the US-Israeli strikes in Iran.
According to online car marketplace Motorist Singapore, pump prices for 95-octane petrol in Singapore on Tuesday ranged from S$3.39 to S$3.47 per litre. It cost S$2.87 to S$2.88 per litre on Feb 23, before the war in the Middle East began.
Similarly, diesel prices also experienced an increase over the same period – from S$2.57 to S$2.66 per litre, to S$3.40 to S$3.56 per litre.
