Ride-hailing operator Gojek will halve the commission it receives from its drivers from June 21 till at least the end of next year to help them increase their earnings.

This means Gojek drivers will keep 90 per cent of the fare from every trip, instead of 80 per cent.

The move comes after Grab, the dominant ride-hailing operator here, said it would seek to improve drivers' earnings by introducing a $1 fare hike from this month.

Gojek yesterday said the cut in commission, which it refers to as service fees, will help to lessen the impact of the Covid-19 pandemic on its drivers. It said a survey it conducted found that 50 per cent of drivers want lower service fees for better earnings.

Gojek will also introduce a payout of $3 to drivers who have to travel 3km or more to pick up their passenger, among other steps.

Its general manager Lien Choong Luen said: "The ongoing impact of the pandemic is a consistent worry for our driver-partners as they try to sustain their earnings amid the uncertainty.

"These measures will have a profound impact on the livelihoods of our driver-partners, increasing their take-home earnings while giving them more flexibility by reducing their dependence on incentives," he said.

Gojek said the changes reflect a significant investment in Singapore as it seeks to grow its market share here.

It also said a recent campaign to provide free or discounted rides to and from vaccination sites for all riders in Singapore has registered 117,500 rides so far.

Some drivers have been calling for ride-hailing operators to cut their commissions to help tide them over the impact of the pandemic.

While Grab has not announced a cut of its 20 per cent commission rate, it said last month that it will permanently raise fares by $1 from this month to improve driver earnings amid rising fuel and maintenance costs.

It will not collect commission on the additional $1 from June 1 to 30. This means drivers will get $1 more for every ride they complete with Grab for a month.

Associate Professor Walter Theseira of the Singapore University of Social Sciences said that Gojek's move to lower driver commissions has not been seen for years in the local market.

Prof Theseira, who teaches economics and looks at urban transport issues, noted that what matters most for drivers is their take-home earnings, which are also affected by the number of passengers a platform can attract.

"Gojek would very likely have to combine commission cuts to drivers with measures to encourage commuters to switch," he added.

"Otherwise, you would have more drivers chasing the same number of commuters, which means their take-home earnings could go down after switching to Gojek."

Toh Ting Wei