Singapore — Following the announcement from Grab that fares will be raised from June 1, private-hire car drivers have spoken out against the move.
Many drivers have criticised the move, adding that they felt that ride-hailing firm Grab did not go far enough to support them.
From May 16 to June 13, Singapore tightened its Covid-19 restrictions, leading to more people working from home. This means that at a time when ridership has gone down drastically, Grab increased its fares by S$1.
While Grab has announced that the S$1 fare increase will go entirely to its drivers from June 1 to June 30, from July 1, Grab will take a 20 per cent cut from the S$1 increase, which will be permanent.
However, Grab adds that drivers will be entitled to fixed-value cash rebates, based on the total number of transport and delivery assignments that they complete.
Some drivers and deliverymen feel that the increase is too small, especially considering the drop in the number of jobs and ride bookings they now have. Others also feel that Grab should reduce its 20 per cent commission rate.
Drivers also said that the higher fare disincentivises riders and gives drivers not using Grab more business
Helping drivers in this is Member of Parliament Yeo Wan Ling, advisor to the National Private Hire Vehicles Association, who called on Grab to relook its commission formula.
She asked that Grab continue to support drivers’ livelihoods and well-being such as relooking into commission structures, and assistance should drivers be issued with quarantine orders and lose their livelihoods.
She also added that the association would work closely with the drivers and the ride-hailing operators to monitor the ground reaction to the fare hike in the short term.
Before the increase, the base fare for the fixed-fare service JustGrab and GrabCar private-hire car option is S$2.50.
Grab adds that the change will not apply to its standard taxi option, social ride-sharing service GrabHitch and chartered-bus and minivan offering GrabCoach.
Shortly after Grab’s announcement, its competitors such as Go-jek and even taxi company ComfortDelGro offered promotions and discounts for rides and delivery services.