Grab S'pore has unveiled a slew of measures today (May 25) to help its drivers cope with reduced ridership during the pandemic and increased cost of maintaining and operating a vehicle.
S$1 increase in base fare from June 1
For starters, Grab is increasing its base fare by S$1 from June 1 for all transportation services except Standard Taxi, GrabHitch and GrabCoach.
Grab says that this will allow fares to keep up with drivers' rising costs of providing the service, making it more financially viable for Grab drivers to continue operating, especially during this period when private-hire transport demand is down.
Taxi and private-hire car ridership in April 2021 was at 80 per cent of pre-pandemic levels before Phase 2 Heightened Alert measures kicked in. It has fallen further to about 55 per cent since Phase 2 Heightened Alert started.
100 per cent of this S$1 increase will go to drivers from June 1 to June 30. Grab will not collect commissions from this S$1 during this stipulated period, but will do so from July.
To help consumers adjust to the new fare structure, Grab will be offering S$1 vouchers (using a promo code) for peak-hour rides from June 1 to June 14.
Peak hours are from:
- 7am - 9am, 5pm - 7pm on weekdays
- 11am - 6pm on weekends
Rebates and incentives for drivers
More incentives will be rolled out for drivers who complete delivery jobs — such as GrabFood, GrabMart and GrabExpress — in designated high-demand areas such as the Central Business District.
To alleviate the financial strain on drivers, Grab is providing fixed-value rebates based on the total number of transport and delivery jobs completed during pre-designated hours.
GrabRentals will be offering a rental rebate of up to S$45 per week depending on the eligible hirers’ current rental fees.
Six of Grab’s recommended fleet partners have also committed to offer rental rebates for eligible hirers. They are:
- Lion City Rentals Pte Ltd
- AutoExchange Leasing Pte Ltd
- KH Leasing Pte Ltd
- MS Carz Leasing Pte Ltd
- Prime Transport & Limousine Services Pte Ltd
- Roset Limousine Services Pte Ltd
Higher medical insurance payouts & Covid-19 vaccination protection for drivers
Drivers will get higher payouts — up to 90 per cent — under Grab's Prolonged Medical Leave Insurance policy, which includes post Covid-19 vaccination protection for those who are hospitalised due to adverse effects from the vaccine.
Drivers who are quarantined or hospitalised due to Covid-19 will also be covered for potential loss of income.
Grab projects that this slew of support measures can help drivers recover up to 50 per cent of their lost earnings based on activity levels during the first week of Phase 2 Heightened Alert.
Top image by Joshua Lee.