Local ride-hailing platform Grab will start charging a S$0.30 platform fee (inclusive of GST) on every ride from Dec. 18, 2020, with the exception of GrabHitch and GrabResponse.

Grab to implement platform fee from Dec. 18, 2020

The platform sent a notification on the app to its users on Friday morning (Dec. 11), one week before the new scheme rolls out.

The platform fee will be used to pay for safety features and driver benefits, says Grab.

Previously, Grab had applied to the Competition and Consumer Commission of Singapore (CCCS) to allow the implementation of a S$0.32 platform fee (inclusive of GST) on each ride.

The CCCS subsequently conducted public consultations from Jul. 28 to Aug. 11, 2020 as part of its assessment of Grab's application.

What is the platform fee used for?

Two-third of the fee (S$0.20) will be used to improve safety and security, among other things, while the remaining one-third of the fee (S$0.10) will be pooled towards initiatives to support Grab drivers, including training allowances and Medisave Match programme.

Platform fees on other ride-hailing apps

Earlier this year, fellow ride-hailing platform Gojek also implemented a platform fee of S$0.70 to cover the costs of "initiatives designed to improve the experience for customers and driver-partners".

In other countries such as the United States, ride-hailing platform Uber charges a booking fee of upwards of US$2 (S$2.76).

Uber also charges a booking fee in other countries such as Australia, Brazil, and Hong Kong.

Top image via Grab