Grab drivers to see 50-cent increase in minimum fare from Nov 24
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The $0.50 increase will be fully funded by Grab, and will not impact passenger fares.
ST PHOTO: KUA CHEE SIONG
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SINGAPORE - Starting from Nov 24, Grab Singapore will increase the minimum fare for its drivers by 50 cents, in a move aimed at boosting their earnings on short-distance trips under 3km.
The increase will be fully funded by Grab, and will not impact passenger fares, said the ride-hailing firm in a joint statement with the National Private Hire Vehicles Association (NPHVA) on Nov 17.
The fare increase will be applied to most fixed-fare, on-demand services except GrabHitch, nine-seater, 13-seater and hourly rental services. This means that for JustGrab services, drivers will see a minimum fare of $5.80 per ride, up from $5.30, said the statement.
The adjustment will address the lower earnings faced by drivers for short trips, where operational costs such as vehicle rental instalments and fuel or electricity consumption form a higher proportion of the total fare.
The measure comes after discussions between Grab and NPHVA, which is affiliated with the National Trades Union Congress (NTUC).
“The 50-cent minimum fare increase translates to up to 9 per cent increase in minimum fare,” said NPHVA executive secretary Raven Lee, who called the move a “step forward”.
Grab Singapore’s head of transport and country operations Alvin Wee said the increase demonstrates the firm’s commitment to the welfare of its drivers.
“We are focused on co-creating solutions that address pressing concerns while ensuring the overall health of the ride-hailing industry,” he added.
In a separate joint statement on Nov 17, Grab and NTUC announced that Grab will now formally recognise the National Taxi Association (NTA) to represent taxi drivers on its platform under the Platform Workers Act.
The announcement came alongside an agreement signing ceremony on Nov 17 between Grab and NTA, which is part of NTUC.
According to the statement, the partnership between Grab and NTA is the newest development between Grab and the three NTUC associations: NTA, NPHVA and the National Delivery Champions Association (NDCA).
Grab is the first platform operator to formally recognise all three platform work associations.
In March, Grab had formally recognised NPHVA and NDCA to represent private-hire drivers and delivery workers, respectively.
Ms Yeo Wan Ling, NTUC assistant secretary-general, said the signing marked a milestone for platform workers.
“This strengthens our collective voice and allows us to work closely with Grab to address key challenges faced by our platform workers, including earnings, safety and working conditions,” added Ms Yeo, who is also the adviser to NDCA, NPHVA and NTA.
