Grab joins list of ride hailing firms increasing fares as fuel costs rise

Grab will implement a temporary SG$0.50 Driver Fee, in addition to its ongoing commission rebate and fuel discount schemes, to help its driver-partners to cover higher operating costs. The flat fee will be added to all rides, except for its standard taxi service, from 1 April to 31 May. Similar to Gojek and TADA, this fee will not be subject to prevailing commission rates and will go directly to the drivers.

At the same time, Grab will launch a commission rebate programme, which provides eligible driver-partners with a 5% commission rebate for the first 199 completed trips. Additionally, Grab will partner with Caltex in April to provide drivers with an additionally one-time fuel discount, which will be in addition to the existing 29% CaltexGo discount.

On the food delivery end, Grab and Caltex will provide Emerald, Ruby and Sapphire delivery-partners with 20% fuel discounts. At the same time, Grab has partnered with a number of bicycle and e-bike retailers such as MOBOT to offer up to 40% savings as well as interest-free instalment plans for delivery-partners who may wish to switch to non-petrol-powered delivery modes.

Alvin Wee, head of transport, Grab Singapore said that it has heard from its driver-partners about how rising fuel prices have impacted their earnings, and have been exploring different ways to support them. "Our priority is to ensure that our driver-partners earn a sustainable income on our platform. 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.

MARKETING-INTERACTIVE has reached out to Grab for comment. 

Grab joins several other ride-hailing platforms to implement initiatives to offset rising fuel costs. TADA recently implemented a temporary Driver’s Fee to reduce the burden of increasing fuel prices on the drivers. To ease riders into the temporary Driver’s Fee, TADA will be offering SG$1 vouchers with the promo code “ONETADA” to passengers, with limited redemptions daily until 30 April 2022. Additionally, TADA launched a driver campaign, providing fuel rebates to drivers who complete trips on a daily basis. The first driver campaign will run from 4 to 17 April, offering drivers a SG$10 rebate per day if they complete 19 trips daily, after which the campaign may be extended following a review. 

Gojek also said this month that it would increase its trip start fares from 31 March, to support its driver-partners' earnings, and help them cope with rising fuel and operating costs.  To keep consumers happy and offset the charges, its ongoing “925” promotion will remain applicable to all trips booked via its platform. The promotion provides customers with up to 50% off fares for trips - up to SG$5 - from 9am to 5pm on weekdays. New users also receive a discount voucher.  According to multiple sources such as The Straits Times and Channel NewsAsia, the start fare for all GoCar trips will cost SG$0.50 more, while GoCar Premium and GoCar XL services will see an SG$0.80 increase in start fares.

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