Grab wants to charge $0.32 platform fees to pay for features and driver welfare

Singapore’s biggest ride-hailing player Grab has submitted its application to charge a platform fee. Grab wants to impose a $0.32 (inc 7% GST) on every ride to cover operating costs and to finance driver’s benefits.

CNA reported that Grab will commit a third of the funds collected through the platform fee towards providing benefits for drivers.

Pending CCCS Approval

The Competition and Consumer Commission of Singapore is conducting a public consultation to get feedback on the proposed introduction of a platform fee.

The need for public consultation can be attributed to the Uber and Grab merger in 2018. The competition watchdog (CCCS) had said that the Uber-Grab merger had infringed on the competition act.

Grab and Uber was handed a $13 million fine by CCCS and specific directions were issued to both companies. For example, Grab is required to maintain its pre-transaction pricing, driver’s commission rates and structure.

Therefore there is a need for a public consultation instead of easily introducing a platform fee like Go-Jek did earlier this year.

Why does Grab need an additional $0.30 per trip

According to Grab, they have invested heavily in sustaining and introducing new features for a safer and secured ride.

Grab managing director for transport Mr Andrew Chan highlighted that over 80 tech improvements were implemented on the platform in 2019.

He also mentioned the one-third contribution from the platform fees will go towards drivers’ welfare. Grab will look into doubling the benefit coverage of personal accident insurance for private-hire vehicles from $10,000 to $20,000.

Other initiatives include extending the Driver Prolonged Medical Leave and matching drivers’ Medisave contributions up to $100 per driver per month.

Taking part in the public consultation

Members of the public who are interested can send their feedback via email to CCCS at by 11 August 2020, 5 pm.

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Commander-in-Chief @ Firstlane Swam to Sunny island to escape from the half-brother who ruled with an iron-fist and feed the family with needles or to dogs. Kim is my family name and Jio is my favorite fruit. Screwing around with Uber & Grab since 2014