National private-hire drivers’ group calls on Grab to hold off change in bonus scheme

SINGAPORE – The National Private Hire Vehicles Association (NPHVA) has asked ride-hailing platform Grab to delay the roll-out of changes to its incentive schemes, slated for July 1, “for further deliberation”.

In an in-app message to drivers at 2pm on June 20, Grab announced that, from July 1, Streak Zones would be available to all its partner drivers, along with revisions to the existing monthly bonus scheme.

Streak Zones was trialled in May 2024. It allows drivers to pre-book two-hour time slots where they drive in high-demand areas, during which all their bookings are automatically accepted. These slots are mostly during peak periods.

Drivers earn a cashback of 5 per cent on every completed trip.

“Payouts are made the next day, improving cash flow for driver-partners,” Grab told The Straits Times.

However, NPHVA is concerned that the changes would result in reduced earnings for most full-time drivers, said Ms Yeo Wan Ling, adviser to the association, in a Facebook post on June 23.

Grab’s monthly bonus scheme, previously called Grab Streak Bonus, has three levels, each with its own bonus structure.

The more trips a driver completes in a month, the higher the percentage bonus on their earnings, with rates increasing across tiers and trip milestones.

From July 1, the percentage bonuses will be cut. 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 slashed 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, drivers at the lowest incentive level will not receive this cash bonus, while this will also be cut for the next two tiers to $30 and $50, respectively.

However, those at the highest level who complete 651 or more rides can still earn up to 21 per cent in bonuses, down from the 701 rides needed in the current scheme.

Weekly bundle bonuses ranging from $25 to $68 will also be given to drivers who complete more Streak Zones.

Ms Yeo, who is also assistant secretary-general in the National Trades Union Congress and an MP for Punggol GRC, said these changes make earnings less predictable.

“The added complexity makes it harder for drivers to work out whether they’ll be better off compared with the previous structure,” she said.

NPHVA reiterated its call for Grab to have “more meaningful consultation” with the association before making changes that affect driver earnings, Ms Yeo added.

She also said there is no assurance for drivers that there will be sufficient Streak Zones slots for everyone.

In response, Grab told ST that its decision to reallocate funds from its monthly bonus scheme to expand Streak Zones would ensure sufficient slots for those who wish to participate.

It did not respond to ST’s query on whether it will delay the launch of the new Streak Zones feature.

The ride-hailing operator said this move will enhance drivers’ earnings, while enabling the platform to better match driver supply to periods and areas with higher unmet demand.

It said that the change will better support part-time drivers who are on the road for a few hours each day, and reward full-time drivers for their commitment. This is because all drivers can receive incentive payouts from participating in Streak Zones.

Grab said the Streak Zones feature was co-created with its driver-partners through small-scale trials and focus group discussions.

Improvements were made based on drivers’ feedback, such as cutting Streak Zones slots from three to two hours, and shortening the required duration of staying online from 85 per cent to 70 per cent of the slot.

Mr Muhammad Fauzi, 43, expects a drop of a few hundred dollars in his earnings once the lowered percentage bonuses in the Streak Zones feature take effect.

The private-hire driver of six years said the change is “unfair to drivers”, noting that there may be limited Streak Zones slots, and that the 5 per cent cashback on each trip is marginal.

He added that this is not the first time Grab has made such changes to its driver incentives, so he is contemplating switching to another ride-hailing platform.

Mr Fauzi said: “We understand that Grab also wants to make money, so it cannot sustain throwing out bonuses to drivers in the long run. But it can at least increase its base fares.”

Mr Kenneth Li, 40, a full-time private-hire driver of almost 10 years, said drivers who complete more than 700 trips – including himself – will not be affected by the drop in monthly bonuses.

But he noted that other drivers who complete fewer trips, such as part-timers, will feel the pinch. He likened Grab’s incentive schemes to “carrots” that are good to have, adding that base fares are more important.

“Imagine earning lowballed fares, combined with Grab’s extremely high commission – how much is left for the driver?” he said, referring to the commission that drivers are charged, which changes based on the distance travelled and time taken to pick up passengers.

Grab has initiated a feedback session with its drivers on June 26 to discuss the changes in its bonus scheme.