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GRAB will add a platform fee of approximately S $ 0.30 to its trip in the coming months, after a statement from the Singapore Competition and Consumers Commission (CCCS) said it would remove previous restrictions placed on the transport company.
The ride-sharing operator in July submitted a request to the commission to impose a platform fee for its ride-sharing services in Singapore. The commission will no longer issue a decision on the matter, CCCS said Friday morning.
This introduction of a platform fee will be “the only change” that Grab will make to its fees … for at least the next six months, he said. Andrew Chan, Managing Director of Transport, Grab Singapore. Other ridesharing platforms such as Gojek and Ryde currently have platform fees of up to S $ 0.70.
Following Grab’s merger with Uber, CCCS in September 2018 required the former to maintain its pre-merger pricing, pricing policies and product options, as well as remove all exclusivity obligations on taxi drivers and fleets, for fear of a “substantial decrease in competition”. “in the private travel market.
However, following the implementation of Singapore’s new point-to-point (P2P) transportation regulatory framework on October 30, more operators such as Gojek, ComfortDelgro and Tada Mobility have also obtained transportation service operator licenses, CCCS said.
The new regulations will ensure that all licensed operators cannot prevent their drivers from driving for other operators. It will also ensure that P2P fees are transparent and clearly communicated to travelers, leaving fee levels to be determined by market forces.
“With a sector regulatory framework already in place, CCCS considers it timely to release the instructions imposed on Grab, as the issues identified are considered and addressed more appropriately within the context of the sector regulatory framework,” the commission said.
Chan noted: “The platform fee will allow us to maintain and improve security measures, cover other relevant operating costs and look after the well-being of our driving partners in a sustainable way … We will be prudent with our pricing structure and policies.”
A third of its platform fee will be allocated to support its drivers through programs and social benefits, Grab said.
“We also welcome the decision as it will help us accelerate the speed of innovation to introduce new tests and develop more solutions to meet the ever-evolving needs of our passengers in the future,” said Grab.
The National Association of Private Rental Vehicles said on Friday that its main concern is that drivers’ income is fair. Any fee or commission adjustments charged must also be “reasonable” and “improve drivers’ livelihood.”
Yeo Wan Ling, Director of the Small and Medium Business Division at NTUC, said: “In the long term, we want to ensure that the livelihoods of our drivers are not adversely affected by rate changes or adjustments.
“We look forward to working closely with Grab and all parties so that our drivers can be stakeholders and true ‘driving partners’ of Grab.”
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