Starting from 1 January 2025, ride-hailing passengers in Singapore are in for a little shock as fees rise across major platforms—Grab, Gojek, Tada, and ComfortDelGro. This upcoming fee hike is largely attributed to the new Platform Workers Act, aiming to better support drivers and delivery workers. Let’s break down what’s changing.
Fee Increases Across Platforms
- Grab: Fee goes up from S$0.70 to S$0.90 per trip. This covers increased contributions to the Central Provident Fund (CPF), work injury insurance, and other welfare initiatives.
- Gojek: Platform fees will rise by S$0.30, making the new range S$0.90 to S$1.50 per trip.
- ComfortDelGro: Fees will increase from S$0.70 to a new range of S$1 to S$1.20, depending on distance and travel time.
- Tada: The platform fee will jump from S$0.55–S$0.75 to a new range of S$1.05 to S$1.25.
New Labour Protections Under the Platform Workers Act
The recent amendments to the Platform Workers Act, passed in September 2023, will roll out enhanced protections for private-hire drivers and delivery workers. Key provisions include:
- Mandatory CPF contributions for workers born on or after 1 January 1995.
- Work injury compensation insurance that matches employee standards.
- Financial support aimed at improving overall earnings for drivers.
Reactions to the Fee Changes
The decision has elicited mixed feelings among users and drivers:
- Positive Feedback: Many riders, like finance manager Alvin Lee, view the increase as a supportive measure for workers, acknowledging their willingness to adjust spending elsewhere.
- Concerns from Drivers: Some cab drivers fear that the increased fees might drive away passengers, potentially affecting their earnings.
Organisation leaders, such as ComfortDelGro’s CEO Tommy Tan, are hopeful that these fee adjustments will enhance welfare initiatives, ensuring a stable future for drivers.
Regulatory Scrutiny!
The Competition and Consumer Commission of Singapore (CCCS) is now closely monitoring these simultaneous fee hikes. They’ve expressed an interest in the potential for anti-competitive conduct and are encouraging the public to report any suspicious activity.
This bold move by the ride-hailing industry aims not only to ensure better pay and security for workers—but also raises important questions in the competitive landscape of Singapore’s transport services.