Search the Community

Source: https://www.todayonline.com/singapore/grab-increase-platform-fee-s070-may-5-2151501 SINGAPORE — Ride-hailing firm Grab will be raising its platform fee to S$0.70 from May 5 for each ride, up from the current S$0.30 fee, the company said on Friday (April 14). The adjustment is in line with platform fees charged by other ride-hailing platforms in Singapore and the change will be reflected on all Grab transport service types, the firm said in an email to its customers. "This will support the development of continuous app improvements such as safety features, increased reliability and driver-related benefits," said Grab. The ride-hailing giant introduced its S$0.30 platform fee in 2020. Rival firm Gojek charges a S$0.70 platform fee on every trip made. Another ride-hailing company, Tada, charges a platform fee of S$0.55 before Goods and Services Tax (GST) for fares below S$18. For fares above S$18, the platform fee is S$0.75 before GST. Grab said on Friday that the ride-hailing industry is facing a shortage of drivers, with significantly more people booking rides than there are enough drivers to serve the increased demand. "This has resulted in longer wait times and caused passenger fares to fluctuate more than anyone would like. Which is why we are introducing new solutions to help improve the situation," it said. To help tackle the shortage, Grab said it has relaunched GrabShare, where two passengers heading in the same direction can share a ride for discounted fares. It is also recruiting more drivers through its new schemes. New "technology-enabled features" also aim to help Grab's drivers "work more productively to serve more passengers". This includes a tool that shows drivers the areas with high passenger demand. CNA

https://www.cccs.gov.sg/media-and-consultation/newsroom/media-releases/cccs-consults-grab-application-to-impose-platform-fee 1. The Competition and Consumer Commission of Singapore (“CCCS”) is inviting public feedback from 28 July to 11 August 2020, on an application by Grab[1] to impose a platform fee on riders for its ride-hailing services in Singapore (“the Application”). If granted, this will amount to a variation of the directions[2] issued by CCCS to Grab on 24 September 2018 (“the Directions”). Background 2. On 24 September 2018, CCCS issued an Infringement Decision[3] (“ID”) against Grab and Uber (collectively, the “Parties”) in relation to the sale of Uber’s Southeast Asian business to Grab for a 27.5% stake in Grab in return (“Transaction”). CCCS found that the Transaction, completed on 26 March 2018, infringed section 54 of the Competition Act and had led to a substantial lessening of competition (“SLC”) in the provision of ride-hailing platform services in Singapore. Together with the ID, CCCS issued the Directions to the Parties to lessen the adverse impact of the Transaction on drivers and riders and to keep the market open and contestable. 3. Under the Directions, Grab is required to maintain its pre-Transaction pricing, pricing policies and product options (including driver commission rates and structures) for all its products in the ride-hailing platform services market.[4] Consequently, Grab is not allowed to change its pre-Transaction prices or products without prior approval from CCCS. However, Grab may apply to CCCS to vary or remove the Directions.[5] Grab’s Application 4. Grab has applied to CCCS to vary the Directions to allow the imposition of a platform fee of S$0.30 (S$0.32 with GST) on each ride. Grab submitted that it invests heavily to provide both passengers and drivers with a safe and pleasant experience on its platform. Grab submitted that this is a practice that is in line with ride-hailing industry norm. Grab submitted that the S$0.30 platform fee per ride will enable Grab to maintain and enhance the various safety measures and cover the relevant operating costs. A third of the funds collected through the platform fee will be committed towards providing benefits for driver welfare. Public Consultation 5. CCCS is seeking public feedback to assist in its assessment of Grab’s Application. In its assessment, CCCS will take into consideration the factors which are outlined in the Public Consultation Paper in Annex 1. The closing date for submissions of feedback to CCCS is 11 August 2020, 5 pm. If the submission or correspondence contains confidential information, please also provide CCCS with a non-confidential version of the submission or correspondence. 6. CCCS will determine how it should decide on Grab’s Application following the public consultation. 7. More information on the public consultation can be accessed and downloaded from the CCCS website at www.cccs.gov.sg under the section “Public Consultation”.