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Grab rides to cost more from Jan 1 after company hikes platform fees

Grab will raise its platform fees by S$0.30 (US$0.23), the ride-hailing operator said on Wednesday (Dec 24).

Grab rides to cost more from Jan 1 after company hikes platform fees

Grab said it will increase its "platform and partner fee", which means this component of the ride fare will go up from S$0.90 to S$1.20. (File photo: TODAY/Ili Nadhirah Mansor)

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SINGAPORE: Grab will raise its platform fees by S$0.30 (US$0.23) starting in 2026, the ride-hailing operator said on Wednesday (Dec 24), in a move partly attributed to increased CPF (Central Provident Fund) contribution rates.

In an email to customers seen by CNA, Grab - the leading ride-hailing platform in Singapore - said it will increase its "platform and partner fee", which means this component of the ride fare will go up from S$0.90 to S$1.20.

“This adjustment will support platform maintenance and service improvements, other welfare initiatives for platform workers, as well as upcoming updates to driver-partner CPF (Central Provident Fund) contribution rates under the Platform Workers Act,” said Grab.

It added that the adjustment to its platform and partner fees only applies to ride-hailing services. The fees for Grab’s other services, such as food delivery, remain unchanged.

Under the Platform Workers Act, platform workers will receive better protections in three areas - CPF contributions, financial compensation if they are injured on the job and legal framework for representation.

Grab’s latest fee increase follows a similar move last December when four ride-hailing operators in Singapore announced they would raise their platform fees.

“As the government gradually increases CPF contributions for platform workers over the next five years, the platform and partner fee may be adjusted from time to time to reflect these changes, as well as other welfare and operational costs,” said Grab on Wednesday.

It added that its driver fee of S$0.50 per ride will continue until Jun 30, 2026, and is separate from the partner fee.

Grab said that its driver fees help to offset increased on-the-road costs for its driver-partners, such as fuel expenses, with the full S$0.50 going to them. Driver fees apply to all Grab rides, excluding standard taxis.

Meanwhile, its partner fees support the overall welfare of its driver- and delivery-partners, including mandatory contributions to their CPF and work injury insurance.

“Grab will continue to fully and independently fund over S$4 million annually into our GrabBenefits 2.0 programme,” said the ride-hailing operator.

“This programme goes beyond mandatory protections to address our driver-partners' everyday needs - such as healthcare subsidies and wellness support, reductions in operating expenses through discounts on fuel and maintenance, scholarships and upskilling opportunities - ensuring they feel supported on and off the road.”

Rival ride-hailing operator TADA told CNA that it "will not be revising or introducing at this time".

"We will continue to support ongoing policies aimed at protecting platform workers and riders, while maintaining our existing platform fee structure," said a TADA spokesperson.

Source: CNA/ec(ss)
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