Grab applies to impose platform fee for each ride in Singapore

One of Grab’s promotional banners. Image: Grab/Facebook
One of Grab’s promotional banners. Image: Grab/Facebook

Ride-hailing platform Grab is applying to impose a S$0.32 platform fee for each ride in Singapore. 

In today’s announcement, it said that the fee will go towards covering the company’s cost of operations, improvements and driver welfare, and reinvested to fund their existing initiatives like doubling the Personal Accident Insurance benefits that cover both rider and driver.

Singapore’s competition watchdog is studying the application and is seeking public feedback.

“We remain committed to being the best platform we can be for you and our driver-partners alike,” Grab’s statement read. 

“And in order to continue doing so sustainably, we have submitted an application to [Competition and Consumer Commission of Singapore] for approval to introduce a SGD$0.32 platform fee (inclusive of GST) to all Grab transport rides,” it added. 

Grab said that the additional fee will also be channeled towards funding security features like fraud protection and safety features such as the masking of numbers, the Driver Fatigue Model and GrabProtect, an initiative implemented to minimize the spread of COVID-19.

A third of the S$0.32 fee will also support driver’s benefits, training, scholarships and insurance, it added.

Grab also claimed that many other online platforms like delivery services, ride-hailing companies and vacation rental sites are doing the same. 

The Singapore-based company currently collects a fixed 20% commission from its drivers, which Grab said goes into supporting other aspects like credit card charges.

“The commission received has been supporting our operational costs which includes after-ride service (which is supported by some 300 agents) and cashless payment transaction costs (eg. credit card charges),” it said. 

“Over the years, our Grab community has relied on your support, and we hope that we can continue to. A small platform fee will make a big difference to everyone using our platform and we hope that you will support our application to CCCS,” it added.

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