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Grab introduces temporary fee to help drivers with higher operating costs

Grab introduces temporary fee to help drivers with higher operating costs

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

SINGAPORE: Grab said on Friday (Mar 25) that it will introduce a temporary fee for its transportation services from Apr 1, to help its drivers defray higher operating costs.

The driver fee of S$0.50 per ride extends to all transport services except the standard taxi service and is expected to last until May 31, Grab said in a press release. 

The fees will "fully" go to the driver-partners, it added. 

The temporary fee is in addition to Grab’s ongoing commission rebate and fuel discount schemes, said the operator.

The fee does not apply to Grab's other services, such as its food delivery or GrabMart service.

“Our priority is to ensure that our driver-partners earn a sustainable income on our platform,” said Mr Alvin Wee, the head of transport for Grab Singapore.

Mr Wee said that the company has heard from drivers on the rising fuel prices and the impact on their earnings and has been “exploring different ways to support them”.

“We hope the driver fee, together with the ongoing commission and fuel rebate programmes will help to defray their operating costs. We will also continue to monitor the situation,” he added.

Grab’s announcement comes after that of TADA and Gojek, which are also introducing temporary fees to support private-hire car drivers amid rising fuel prices.

TADA passengers will see a S$0.50 flat fee added to all rides with trip fares of up to S$18, while S$0.80 will be added to rides from S$18.10.

Meanwhile, a S$0.50 flat fee will be added to all Gojek rides that are less than 10km in distance, while trips that go beyond 10km will have a S$0.80 flat fee.

Pump prices have been on an accelerated uptrend in recent weeks following Russia’s invasion of Ukraine, and experts have said price volatility will likely continue in the days ahead.

Grab on Friday also said that it will provide fuel discounts for drivers and delivery partners.

In April, eligible Grab driver-partners will be given an additional one-time fuel discount, as part of Grab’s partnership with petroleum company Caltex. This is on top of the existing 29 per cent CaltexGo discount.

Delivery-partners under the Emerald, Ruby and Sapphire programmes will also be given 20 per cent fuel discounts, said Grab.

Grab added that it has partnered with bicycle and e-bike retailers to offer discounts for delivery partners who wish to switch to non-petrol-powered modes.

Source: CNA/ng
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