SINGAPORE - Ride-hailing firm Grab will start charging a platform fee of 30 cents for rides booked through its platform from Dec 18.

The fee is inclusive of goods and services tax, and will apply to all Grab rides except those from the GrabHitch and GrabResponse services.

It is the first such move by the firm to adjust the prices of its ride-hailing offerings after the competition watchdog - Competition and Consumer Commission of Singapore (CCCS) - lifted restrictions on it in November.

Grab said on its website on Friday (Dec 11) that the platform fee will go towards "funding initiatives that will make rides better, safer and more secure" for both passengers and its drivers.

It added that two-thirds of the fee will be used to improve safety and security, among other things.

The remaining one-third of the fee will go towards initiatives to support drivers, which include benefits and training allowances.

"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," said Grab.

The fee will be included in the quoted fare that Grab users see on the platform.

Grab's main ride-hailing competitor in Singapore, Gojek, introduced a platform fee of 70 cents in March.

Grab had earlier introduced a 20-cent platform fee for its food delivery service as well.

It had been unable to go ahead with a similar fee for its ride-hailing services because of restrictions imposed by the CCCS in 2018.

Grab faced extensive restrictions after it infringed rules that prohibit mergers that could significantly reduce competition in any market here, through its merger with Uber.

But CCCS said last month that it lifted the restrictions following the introduction of a new point-to-point transport regulatory framework.

Grab said that the platform fee will be the only change Grab will make 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".

Mr Saktiandi Supaat, chairman of the government parliamentary committee for transport, said any additional fees imposed by private operators in the current environment may not be easily accepted by commuters, no matter how small it is.

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."