Ride-hailing platform Grab is applying to impose a S$0.32 platform fee for each ride in Singapore.
In today’s announcement, it said that the fee will go towards covering the company’s cost of operations, improvements and driver welfare, and reinvested to fund their existing initiatives like doubling the Personal Accident Insurance benefits that cover both rider and driver.
Singapore’s competition watchdog is studying the application and is seeking public feedback.
“We remain committed to being the best platform we can be for you and our driver-partners alike,” Grab’s statement read.
“And in order to continue doing so sustainably, we have submitted an application to [Competition and Consumer Commission of Singapore] for approval to introduce a SGD$0.32 platform fee (inclusive of GST) to all Grab transport rides,” it added.
Dear Grab Community,
From Day 1, it has been our mission to create a platform that connects you to safe, reliable and convenient rides. In order to do so, we’ve invested millions annually in tech improvements and safety features such as: Number Masking, Share My Ride, Personal Accident Insurance, the Emergency button and most recently, GrabProtect initiatives to make rides safer during this pandemic; and other initiatives to support driver-partners’ welfare.
We remain committ…ed to being the best platform we can be for you and our driver-partners alike. And in order to continue doing so sustainably, we have submitted an application to CCCS for approval to introduce a SGD$0.32 platform fee (inclusive of GST) to all Grab transport rides.
If approved, this flat-fee amount – added to the fare of every ride, will be reinvested into the platform to make rides safer and more secure, by funding existing initiatives and rolling out new or improved ones like doubling the Personal Accident Insurance benefits coverage during rides for both you and your driver, from USD$10,000 to USD$20,000.
Over the years, our Grab community has relied on your support, and we hope that we can continue to. A small platform fee will make a big difference to everyone using our platform and we hope that you will support our application to CCCS. If you’d like to learn more about where the platform fee will go, please scroll through the image below or visit grb.to/platformfee.
Grab said that the additional fee will also be channeled towards funding security features like fraud protection and safety features such as the masking of numbers, the Driver Fatigue Model and GrabProtect, an initiative implemented to minimize the spread of COVID-19.
A third of the S$0.32 fee will also support driver’s benefits, training, scholarships and insurance, it added.
Grab also claimed that many other online platforms like delivery services, ride-hailing companies and vacation rental sites are doing the same.
The Singapore-based company currently collects a fixed 20% commission from its drivers, which Grab said goes into supporting other aspects like credit card charges.
“The commission received has been supporting our operational costs which includes after-ride service (which is supported by some 300 agents) and cashless payment transaction costs (eg. credit card charges),” it said.
“Over the years, our Grab community has relied on your support, and we hope that we can continue to. A small platform fee will make a big difference to everyone using our platform and we hope that you will support our application to CCCS,” it added.
This article, Grab applies to impose platform fee for each ride in Singapore, originally appeared on Coconuts, Asia’s leading alternative media company.