Grab to charge 30-cent platform fee for rides
Move, set to kick in next Friday, comes after watchdog lifts curbs on company
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A passenger getting into a Grab car in Bishan yesterday. The quoted fare that Grab users see on the platform from next Friday will include the platform fee. The ride-hailing firm said the fee will be used to improve safety and security, among other things.
ST PHOTO: CHONG JUN LIANG
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Toh Ting Wei, Toh Ting Wei
Ride-hailing firm Grab will start charging a platform fee of 30 cents for rides booked through it from next Friday.
The fee is inclusive of goods and services tax, and will apply to all Grab rides except GrabHitch and GrabResponse.
It is the first such move by the firm to adjust the prices of its ride-hailing offerings after the competition watchdog - the Competition and Consumer Commission of Singapore (CCCS) - lifted restrictions on it last month.
"The platform fee (sometimes known as a service fee) is an industry-standard fee that many online platforms such as delivery services, ride-hailing companies and vacation rental sites impose for the usage of their platform/service," Grab said on its website yesterday.
Two-thirds of the fee will be used to improve safety and security, among other things, while one-third of the fee will go towards initiatives to support drivers, which include benefits and training allowances, it added.
The fee will be included in the quoted fare that Grab users see on the platform.
Grab's main ride-hailing rival in Singapore, Gojek, had introduced a platform fee of 70 cents in March.
Grab had introduced a platform fee of 20 cents for its food delivery service as well.
It had been unable to go ahead with a similar fee for its ride-hailing services due to restrictions imposed by the CCCS in 2018.
Grab faced extensive restrictions after the firm, through its merger with Uber, was found to have infringed rules prohibiting mergers that could significantly reduce competition in any market here.
But the CCCS said last month that it has lifted the restrictions following the introduction of a new point-to-point transport regulatory framework.
Grab said the platform fee will be the only change that it is making to its fares for the time being. It added that it is committed to maintaining its current pricing structure and policies "for at least the next six months, given the Covid-19 situation".
Government Parliamentary Committee for Transport chairman Saktiandi Supaat said any additional fee imposed by private operators in the current environment, no matter how small it is, may not be easily accepted by commuters.
He added: "It may be useful to see how Grab and other operators formulate this platform fee and at what frequency.
"There is always a risk that the fee can be gradually increased over time, given the economic market structure in the industry."
