Grab is rolling out changes to how they compensate their drivers.
These adjustments, set to take effect on November 14, come as a response to drivers’ feedback, particularly concerning the challenge of picking up passengers from distant locations.
The aim is to address this issue and improve driver satisfaction in the context of an ongoing driver shortage in the ride-hailing sector.
The key change involves replacing the existing fixed commission system with a variable fee structure.
The New Driver Commission Scheme
Drivers will now be compensated based on the effort required to pick up their passengers, rather than adhering to a fixed commission rate.
This new commission scheme will apply to all services, excluding GrabShare, Hire, Standard Taxi, GrabHitch, and GrabCoach.
Drivers who need to travel longer distances or spend more time reaching the pick-up location, the service fee will be lower.
Conversely, when drivers are closer to the pick-up point and take less time to get there, the service fee will be higher.
The change in the driver commission structure will not impact passenger fares.
Grab claims that the service fee could occasionally be negative, meaning that the driver’s earnings exceed what the passenger pays for the ride. In such cases, Grab will cover the difference.
The higher service fees charged to drivers with closer pick-ups will help offset the increased fares paid to drivers who complete bookings with longer pick-up times and distances.
-10% to 25% Commission
TODAY reported that during the new driver fare structure pilots, the Grab service fee was observed to range between -10 per cent and 25 per cent.
The extra $3 bonus drivers used to get for picking up passengers won’t be there anymore once the new system kicks in.
