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SINGAPORE – Grab has cut senior management salaries by up to 20 percent and encouraged its staff members to take unpaid, voluntary vacations.
He also warned that he may no longer be able to provide drivers with more financial aid if current circuit breaker measures to combat the Covid-19 outbreak extend beyond June 1.
The technology company is the largest private food rental and delivery operator in Singapore. He is also a major player in electronic payments.
In a note to drivers Wednesday night (April 29), Grab Singapore’s chief transport officer Andrew Chan said the company has been badly affected by the coronavirus outbreak.
Mr. Chan said: “As our earnings continue to drop, Grab’s top leaders have cut their wages by up to 20 percent and Grab staff have also been encouraged to take unpaid vacations voluntarily.
“We were hopeful that stricter switch measures would be lifted next week and people could resume their daily lives. Instead, the switch period was extended to June 1.”
“We may no longer be able to provide additional financial support if the circuit breaker extends beyond June 1.”
On financial support for private rental drivers, Chan acknowledged that his earnings have declined as travel continues to drop sharply.
To help drivers, Grab will continue to cut their commission by at least 50 percent.
Drivers who rent their cars from Grab won’t have to pay any commissions until May 10. But the level of support beyond that date is unclear.
A weekly payment of $ 45 or $ 85 to help supplement drivers’ income will also run until the end of May.
He did not say whether the rental discounts offered by Grab in the initial phase of the circuit breaker would be extended.
Chan said: “Extending assistance was not an easy decision, Grab’s business has also been seriously affected.
“It took us a few days to confirm this, as we needed to redirect some funds.”
The funds were diverted from schemes such as incentives for better performing drivers and compensation for cancellation.
Grab employees also made voluntary donations that were matched by the company to fund the extension of financial assistance.
The full value of the expanded measures was not disclosed.
Chan added that Grab will continue to create more job opportunities for its drivers, such as package and grocery delivery.
All taxi and private car rental firms have been hard hit by the coronavirus outbreak.
Taxi operators ComfortDelGro and SMRT have said they will continue to waive the rent, about $ 100 a day, for their taxi drivers until June 1 after the extended circuit breaker.
The move will cost ComfortDelGro an additional $ 17 million and SMRT $ 6 million.
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