SINGAPORE: Grab and Gojek will extend their temporary driver fees until the end of the year due to high fuel prices, the ride-hailing firms said on Monday (Jul 25).
Grab introduced a flat fee of S$0.50 per ride in April to help its drivers defray higher operating costs. The fee applies to all transport services except the standard taxi service.
"The additional amount will not be subject to the prevailing commission rate and will fully go to our driver-partners," said a Grab spokesperson.
"We will continue to monitor the situation."
Gojek's flat fee has been in place since March. All Gojek trips less than 10km are charged a flat fee of S$0.50. For trips that go beyond 10km, they are subjected to an S$0.80 flat fee.
The company previously said the fee would be in place until at least Jul 31. It will now be extended until Dec 31.
"With the cost of fuel remaining unstable, this extension will provide continued support to driver-partners and ensure earnings stability for them," said Gojek.
The fee applies to go all GoCar, GoCar Premium and GoCar XL rides, with the exception of GoTaxi as fares based on the taxi’s meter.
Gojek also said the full fee is retained by the driver and not subjected to Gojek's prevailing commission rates.
"With costs of living continuing to rise and the macroeconomic situation remaining uncertain, we need to ensure that we too can be there for them and support them through this period," said general manager of Gojek Singapore Lien Choong Luen.
"The extension will provide much-needed earnings protection and security for our driver-partners, so that they can continue to earn a sustainable livelihood for the long term."
Besides the fee, other existing incentives and measures to support Gojek drivers include a reduction in service fees to 10 per cent on all rides, at least until the end of 2022.
To help offset the fee, Gojek said consumers can continue to use its existing promotion codes and vouchers.
Fuel prices have risen in recent months, driven by higher demand for global crude oil as economies reopen, and constrained supplies due to sanctions against Russia.
There has also been an under investment in fossil fuel production over the years, Minister of State for Trade and Industry Low Yen Ling said in Parliament on Jul 5.
She said the Government would review the fuel retail market to determine if there are other ways to alleviate the pressure on fuel prices.
Last month, Senior Minister of State for Finance and Transport Chee Hong Tat announced that eligible taxi main hirers and private hire car drivers will get a one-off relief of S$150, which they will receive in August.
The relief is part of a S$1.5 billion support package targeted at providing immediate relief for lower-income and more vulnerable groups, said the Ministry of Finance in June.
Private hire car drivers need to have completed an average of 200 trips per month from Mar 1 to May 31 this year to qualify.
Grab and TADA announced in May that they have extended their temporary driver fees until the end of July as part of efforts to help drivers with increasing costs.
TADA temporary driver's fee first came into effect on Apr 4. A flat fee of S$0.50 was added to all rides with fares S$18 and below, and a S$0.80 flat fee was added for rides with fares S$18.10 and above.
When asked if TADA would be extending its temporary driver's fee, the company declined to comment.
CNA has also contacted Ryde about their temporary driver fees.
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Grab introduced a flat fee of S$0.50 per ride in April to help its drivers defray higher operating costs. The fee applies to all transport services except the standard taxi service.
"The additional amount will not be subject to the prevailing commission rate and will fully go to our driver-partners," said a Grab spokesperson.
"We will continue to monitor the situation."
Gojek's flat fee has been in place since March. All Gojek trips less than 10km are charged a flat fee of S$0.50. For trips that go beyond 10km, they are subjected to an S$0.80 flat fee.
The company previously said the fee would be in place until at least Jul 31. It will now be extended until Dec 31.
"With the cost of fuel remaining unstable, this extension will provide continued support to driver-partners and ensure earnings stability for them," said Gojek.
The fee applies to go all GoCar, GoCar Premium and GoCar XL rides, with the exception of GoTaxi as fares based on the taxi’s meter.
Gojek also said the full fee is retained by the driver and not subjected to Gojek's prevailing commission rates.
"With costs of living continuing to rise and the macroeconomic situation remaining uncertain, we need to ensure that we too can be there for them and support them through this period," said general manager of Gojek Singapore Lien Choong Luen.
"The extension will provide much-needed earnings protection and security for our driver-partners, so that they can continue to earn a sustainable livelihood for the long term."
Besides the fee, other existing incentives and measures to support Gojek drivers include a reduction in service fees to 10 per cent on all rides, at least until the end of 2022.
To help offset the fee, Gojek said consumers can continue to use its existing promotion codes and vouchers.
Related:
Fuel prices have risen in recent months, driven by higher demand for global crude oil as economies reopen, and constrained supplies due to sanctions against Russia.
There has also been an under investment in fossil fuel production over the years, Minister of State for Trade and Industry Low Yen Ling said in Parliament on Jul 5.
She said the Government would review the fuel retail market to determine if there are other ways to alleviate the pressure on fuel prices.
Last month, Senior Minister of State for Finance and Transport Chee Hong Tat announced that eligible taxi main hirers and private hire car drivers will get a one-off relief of S$150, which they will receive in August.
The relief is part of a S$1.5 billion support package targeted at providing immediate relief for lower-income and more vulnerable groups, said the Ministry of Finance in June.
Private hire car drivers need to have completed an average of 200 trips per month from Mar 1 to May 31 this year to qualify.
Grab and TADA announced in May that they have extended their temporary driver fees until the end of July as part of efforts to help drivers with increasing costs.
TADA temporary driver's fee first came into effect on Apr 4. A flat fee of S$0.50 was added to all rides with fares S$18 and below, and a S$0.80 flat fee was added for rides with fares S$18.10 and above.
When asked if TADA would be extending its temporary driver's fee, the company declined to comment.
CNA has also contacted Ryde about their temporary driver fees.
Continue reading...