Transport & Motoring

Grab might be implementing a 0.32 SGD platform fee on each ride to help cover its costs

Grab Platform Fee Featured

This could be bad news for passengers on a Tuesday afternoon. This is because news has it that Grab has applied to the Competition and Consumer Commission of Singapore (CCCS) to implement a 0.32 SGD (inclusive of GST) platform fee on each ride.

What a way to end the month of July.

GRAB’S JUSTIFICATION

According to CCCS, this platform fee will enable the ride-hailing company to maintain and enhance its safety measures and operating costs. One-third of the funds collected through the platform fee will be used to provide better welfare for its drivers.

Grab’s managing director for transport, Andrew Chan, has added that with the funds collected, Grab will be looking into various enhancements. These include doubling the benefit coverage of personal accident insurance for private-hire vehicles. They are also in discussions to provide training allowance for drivers to upskill and make a greater contribution to the GrabCar Medisave Match Programme.

“We hope to seek favourable responses from our driver-partners and passengers through this public consultation process, and look forward to providing an even more enjoyable ride experience that value-adds to their everyday lives to them,” said Mr Chan.  

They have also further explained that this move is in line with the ride-hailing industry as a whole. For example, Gojek has also imposed a 0.70 SGD platform fee. While other overseas ride-hailing services are also charging service or booking fees.

HEAVY INVESTMENTS ON TECH IMPROVEMENTS

To give grounds for their application to implement a platform fee, Grab has also directed the public’s attention to the heavy investments they have made on tech improvements.

Mr Chan has stated that more than 80 tech improvements were implemented on the platform in 2019. He’s referring to features like number-masking, the emergency button, and driver identity verification for its users’ safety and security. The driver telematics and heat-map also support their driver-partners’ well-being and livelihoods while they are on the roads.

APPLICATION-IN-PROGRESS

There’s nothing to worry about right now since Grab is unable to change its prices without consent from the CCCS.

In fact, after its acquisition of Uber in 2018, CCCS has issued specific directions to Grab. With the guidance in place, the company can only maintain its pre-transaction pricing, policies, and product options.

HAVE YOUR SAY IN THIS

It’s great that the public can have a say in this. Thanks to CCCS, you and I can offer our feedback on this issue from now till 11 August, by 5pm.

If you feel strongly about this implementation as a Grab user, send your feedback to CCCS via this email: [email protected]

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