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TADA introduces temporary fee on trips to cushion rising fuel prices for drivers

TADA introduces temporary fee on trips to cushion rising fuel prices for drivers

File photo of cars on a highway in Singapore (Photo: CNA/Jeremy Long)

SINGAPORE: Ride-hailing platform TADA said on Wednesday (Mar 23) that it will introduce a temporary fee on all trips from Apr 4, to help ease the pressure of increasing fuel prices on private-hire car drivers.

The "driver’s fee" is expected to be in place until May 31, when it will be further reviewed should fuel prices drop, said TADA in a press release.

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.

The full amount of the fees will go to the drivers, said TADA.

"The main goal of the driver’s fee is to help reduce the burden of increasing fuel prices on the drivers," it added.

"For transparency, the fare adjustment will be reflected separately from the ride fare and will be itemised distinctly on the rider’s receipt as they complete a booking."

To help passengers offset these changes, TADA will offer S$1 vouchers with the promo code “ONETADA”, with limited redemptions until Apr 30.

TADA's announcement follows that of Gojek, which is implementing a temporary flat fee on all trips from Mar 31 "until at least May 31".

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.

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

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

TADA said on Wednesday it will also introduce a campaign to provide fuel rebates to drivers who complete a certain number of trips on a daily basis.

Under the first campaign, which will run from Apr 4 to 17, drivers will receive a S$10 rebate per day if they complete 19 trips daily. The campaign is subject to review and may be extended.

“We recognise the operating cost pressures our drivers face in an environment of rising fuel prices and the temporary driver’s fee will offer some respite in rising prices. This coupled with the rebates from the driver campaign, we hope will help drivers mitigate the additional costs,” said TADA general manager Jonathan Chua.

Source: CNA/aj(gs)


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