First batch of food delivery riders receive LTA's approval to trade in e-scooters for new vehicles

Foodpanda, which has about 960 e-scooter riders, said more than a third of eligible riders have received approval from LTA.
Foodpanda, which has about 960 e-scooter riders, said more than a third of eligible riders have received approval from LTA.PHOTO: LIANHE ZAOBAO

SINGAPORE - About one in five GrabFood delivery riders and one in three eligible foodpanda riders have had their requests to trade in e-scooters approved by the Land Transport Authority (LTA).

These riders are the first group of people who will benefit from the $7 million e-scooter Trade-in Grant (eTG) set up by the Government and the three major food delivery companies in Singapore.

Under the scheme, eligible riders can trade in their e-scooters for up to $1,000 each to fund their switch to electric bicycles or personal mobility aids.

Those who opt to switch to bicycles can receive up to $600 each.

The grant was announced on Nov 8 amid concerns from riders that their earnings would be hit hard by a ban on e-scooters using footpaths.

In response to queries, Grab, which has the most e-scooter riders on its platform, said the LTA had confirmed that some 18 per cent of its e-scooter riders have received the approval, with the number expected to increase in the coming weeks.

Meanwhile, foodpanda, which has about 960 e-scooter riders, said more than a third of eligible riders have received approval from the LTA.

Deliveroo, the least affected among the three firms, did not give an update on how many riders had received the LTA's approval.

But it said it expects more applications for the trade-in grant in the coming weeks.

Riders who have received the approval can now buy their new modes of transport before trading in their e-scooters with their respective firms.

 
 
 
 

About 1,000 out of some 7,000 food delivery riders using e-scooters applied to the three major food delivery firms to trade in their e-scooters last Friday, the first day of the trade-in scheme.

It is unclear how many of the 7,000 will meet the eligibility criteria for the grant, with food delivery companies yet to give numbers.

For example, GrabFood riders had to have completed at least one delivery between Oct 9 and Nov 7 to qualify for the trade-in grant.

The entire clearance process for applications involves both firms and the LTA, and can take up to three working days.

Grab told successful applicants that the in-principle approval is granted on condition that riders do not sell their new vehicle or transfer ownership to someone else for six months after they have received payment.

According to the LTA, breach of terms and conditions set out under the eTG scheme may result in a rider's disqualification. Riders who are disqualified will have to return all payments they received from the scheme.

They have until Dec 31 to apply.