SINGAPORE: In a move to comply with upcoming legislative changes, leading ride-hailing platforms Grab, Gojek, Tada, and ComfortDelGro’s CDG Zig will implement higher platform fees starting Jan 1, 2025.
According to the Straits Times report, the increases are designed to cover the additional costs associated with the new Platform Workers Act, a law passed in September 2024 offers enhanced labour protections for platform workers, including drivers and delivery personnel.
Platform fee increases across major operators
Grab, the largest ride-hailing provider in Singapore, will raise its platform fee from 70 to 90 cents per trip.
The company explained in an email to users that the fee hike is necessary to contribute to drivers’ Central Provident Fund (CPF) accounts, work injury compensation, and other welfare benefits.
Gojek will also increase its platform fee by 30 to 50 cents, pushing the new fee range to 90 cents to $1.50 per trip.
ComfortDelGro, the largest taxi operator in the country, will raise its platform fee by 30 to 50 cents, with new rates ranging from $1 to $1.20 depending on distance and travel time.
Similarly, Tada will increase its platform fee by 50 cents, with a new range of $1.05 to $1.25 before GST.
Legislative changes and their impact on drivers
The fee hikes come in the wake of the new Platform Workers Act, which will require platform operators to make higher contributions to the CPF accounts of their drivers and provide work injury compensation insurance.
The law, set to take effect in January 2025, aims to improve the financial security of platform workers, especially those born on or after January 1, 1995.
Over the next five years, CPF contributions for platform workers will gradually increase to match those of traditional employees.
While some drivers have expressed concerns about potential passenger pushback due to higher costs, many riders are understanding of the price increase.
Customers like Alvin Lee, a frequent user of ride-hailing services, have said the fee hikes are “acceptable” and a way to show support for the welfare of platform workers.
ComfortDelGro taxi driver Ang Li Wei echoed similar sentiments, welcoming the new protections and increased CPF contributions for her future retirement security.
Despite the challenges, the new law is expected to provide greater financial protection for workers, helping to ensure a fairer and more secure working environment for those in the gig economy.