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SINGAPORE: As of December 18, Grab customers will have to pay an additional fee of S $ 0.30 for all trips except GrabHitch and GrabResponse.
This follows last month’s lifting of the measures imposed on Grab by the Competition and Consumers Commission of Singapore (CCCS). The restrictions were implemented in September 2018 by the merger of Grab with Uber.
“This platform fee will go toward financing initiatives that will make trips better, safer and safer for you and our driver-partners,” the company said in an announcement on Friday (December 11).
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Two-thirds of the fee will go towards maintaining, developing and improving product features in terms of safety, quality and productivity, Grab said.
The remaining third will go to support initiatives for drivers, such as benefits and training subsidies.
In a frequently asked question on its website, Grab said that when users book a ride, the rate quoted will include the platform rate.
For metered fare trips, the platform fee will be added to the booking fee. For example, if the reservation fee is S $ 2.30, S $ 0.30 will be added to this amount.
Passengers will be able to view the details of their fare breakdown on the final receipt.
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Grab added that the platform’s fee was different from the commission it charges drivers, as it is charged as an additional fee on top of the commission.
“The commission is charged as a percentage of the trip fee, excluding the platform fee,” said Grab.
The commission received supports operating costs, which include post-trip service and cashless payment transaction costs, such as credit card charges, he added.
Last month, CCCS announced that Grab had submitted a request in July to impose the S $ 0.30 platform fee for transportation services. The commission said it will no longer issue a decision on the application, after the lifting of the instructions imposed on Grab.
CCCS issued an infringement decision against Grab and Uber in September 2018, in connection with the March sale of Uber’s Southeast Asian business to Grab for a 27.5% stake in the Singapore-based company.
The deal led to a “substantial decrease in competition” in the ride-sharing market, CCCS said at the time, highlighting Grab’s price increase and changes to its loyalty program after the merger.
