ComfortDelGro will collect a higher commission from its drivers starting from Jan. 1, 2024.

From 5% to 7%

The new rate amounts to 7 per cent of fares from rides booked on the app and via phone.

The current rate is 5 per cent.

The new commission rate was reported by Lianhe Zaobao on Dec. 26, 2023, and The Straits Times on Dec. 27, 2023.

Estimated to make millions more a year

Based on S$100 earnings, the increase of 2 percentage points translates to S$7 in commissions, when previously it was only S$5.

ST reported that assuming each taxi can generate S$300 a day in earnings, ComfortDelGro stands to make S$52,800 more a day from this increase in commissions, given the current fleet of 8,800 taxis.

Over 300 days of operations, this figure comes up to S$15.8 million more a year.

Justification for increase

A ComfortDelGro spokesperson said the higher commission is "due to higher cost of operation, especially in the areas of technology maintenance, system upgrading and higher financial charges for cashless transactions".

However, from Jan. 1 to Mar. 31, 2024, the company will waive the commission fees for all completed bookings with fares of S$9 and below, excluding platform fees and cashless administration fees.

Slew of changes introduced

This news comes in the wake of ComfortDelGro raising taxi fares on Dec. 13 to "help cabbies defray higher operating cost".

The starting fare for a Hyundai i40 taxi went up from S$3.90 to S$4.40, and that for a Toyota Prius or a Hyundai Ioniq Hybrid cab increased from S$4.10 to S$4.60.

Charges for distance travelled and wait times went up by S$0.10 to S$0.26 for every 400m under 10km, and every 350m after 10km.

ComfortDelGro added that it had introduced a revised loyalty scheme in April 2023 that offered better benefits, such as more rental-free days and reduced rental rates.

A 10 per cent rental waiver introduced during the Covid-19 pandemic will be made permanent from Jan. 1, 2024.

Top photo via ComfortDelGro Facebook