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 [email protected] by 11 August 2020, 5 pm.