Grab to pause changes to bonus scheme after calls from national private-hire drivers’ group

SINGAPORE – Ride-hailing platform Grab will delay the roll-out of changes to its incentive schemes, which were initially slated for July 1.

In a joint statement by Grab and the National Private Hire Vehicles Association (NPHVA), both parties said on June 25 that Grab has decided to pause the planned changes following discussions with the NPHVA and in response to feedback from Grab drivers.

This move was made to ensure that concerns from NPHVA and Grab drivers are fully addressed before further changes are rolled out, they added.

This update was broadcast to all drivers on Grab’s platform via an in-app message at around 4.45pm on June 25.

In the message, Grab said there will be no changes to the existing monthly bonus scheme for now.

After Grab announced its

upcoming revisions to the existing monthly bonus scheme

on June 20, the NPHVA publicly requested the ride-hailing operator to delay the changes on June 23 owing to concerns over reduced earnings for most full-time drivers.

This is because the upcoming Streak Zones scheme will cut the percentages of bonuses for some tiers. For instance, the bonus for the 300th to 499th rides, which now starts at 8 per cent for drivers at the lowest level, will be halved to 4 per cent.

Currently, those who clock at least 300 rides also earn a cash bonus of $30, $80 or $100, depending on their incentive level.

But from July 1, when the Streak Zones scheme was initially due to take effect, drivers at the lowest incentive level would no longer receive this cash bonus, while the amounts for the next two tiers would be cut to $30 and $50, respectively.

The Streak Zones scheme, trialled in May 2024, allows drivers to pre-book two-hour time slots, mostly during peak periods, where they drive in high-demand areas. Drivers earn a cashback of 5 per cent on every completed trip.

Grab and NPHVA said on June 25 that the association had provided feedback that some drivers rely on the bonuses to earn more money beyond the basic fares they receive for completed trips.

Additionally, they noted there were worries that the revised bonus scheme might make it harder for some drivers to reach their target earnings.

“While Grab’s intention was to help driver-partners reduce driving hours and reach their earning goals faster, Grab recognised that the planned changes could have been better implemented,” said Grab and NPHVA.

Both parties said Grab remains committed to working closely with NPHVA to “find effective solutions” that address drivers’ concerns, and that it deeply appreciates the association’s continued guidance in supporting Grab drivers.

They added that NPHVA appreciates Grab’s partnership and will continue engaging the ride-hailing operator to champion workers’ interests.

Drivers told The Straits Times that those who complete fewer than 500 trips each month will see a drop in their earnings, and that the 5 per cent cashback on completed trips in each Streak Zones slot is marginal.

Grab had previously initiated a feedback session with its drivers to be held on June 26 to discuss the changes in its bonus scheme. It told its drivers in the in-app message on June 25 that this session will proceed as scheduled.

In an update on June 27, Grab said it had a productive discussion with over 80 drivers and NPHVA members at the feedback session.

Pilot studies will be done with selected small groups of drivers to evaluate the benefits of new incentive programmes, the firm added.

“This will provide evidence-based insights and instil greater confidence among driver-partners in future changes,” said Grab.

Correction note: An earlier version of this story stated that the percentages of bonuses under Grab’s upcoming Streak Zones scheme will be cut across tiers and trip milestones. The story has been updated to clarify that the percentage cuts apply only to some tiers.