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Ride-hailing companies extend temporary fees to help drivers with rising costs

Ride-hailing companies extend temporary fees to help drivers with rising costs

File photo of a Grab driver. (Photo: TODAY)

SINGAPORE: Ride-hailing service providers are extending their temporary driver fees until the end of July as part of efforts to help drivers with increasing costs.

Grab said in an email to customers on Wednesday (May 25) that its S$0.50 fee, which goes directly to drivers to “assist them with rising costs”, will be reviewed again as the situation evolves.

It was first introduced in April and was set to last until May 31. It applies to all transport services, except the standard taxi service. Other services, such as food delivery and GrabMart, are not included.

“As operating costs for our drivers on the road continue to rise, we have in place driver-partner schemes such as commission rebates and fuel discounts to help alleviate their day-to-day expenses,” the company said.

“We remain committed to helping our driver-partners navigate these hard times and thank you for your support.”

Gojek and TADA similarly extended their temporary driver fees last week.

Gojek said on Friday that the fee will be in place until at least Jul 31 as “fuel prices remain volatile”. It charges a flat fee of S$0.50 for all trips that are less than 10km, while trips that go beyond 10km will have a S$0.80 flat fee.

The fee applies to all GoCar, GoCar Premium and GoCar XL services, with the exception of GoTaxi as its fares are based on the taxi’s meter.

In a press release on Saturday, TADA said the temporary fee will be extended to Jul 31 and will be further reviewed then if fuel prices drop.

"This decision comes after a review by TADA which observed that fuel prices remain inflated, and measures are required to stay in place to continue helping to reduce the burden of fuel prices on the drivers," said the company.

TADA's general manager Jonathan Chua added: “Drivers have provided feedback that the temporary fee increment has given them more security and certainty in their take-home earnings, and we hope to continue extending this job security to them amidst rising prices."

It will also offer S$1 vouchers to customers, using the promo code “1TADA”, for limited redemptions daily from Jun 1 to Jun 30.

“We will continue to monitor the situation closely, and carefully calibrate any decisions during this period to continue upholding TADA’s proposition of fair and stable prices for riders without diminishing the livelihoods of our drivers,” said Mr Chua.

Fuel prices have seen an uptick in recent weeks amid Russia’s invasion of Ukraine, with experts saying some volatility in prices should be expected.

In April, ComfortDelGro temporarily increased its fares for all its taxis to cushion the impact of increasing fuel prices. It said then that the move will be reviewed by the end of May and removed if fuel prices ease.

Source: CNA/ga(mi)

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