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SINGAPORE – Ride-sharing company Grab will begin charging a platform fee of 30 cents for rides booked through its platform from December 18.
The fare includes goods and services tax and will apply to all Grab trips, except GrabHitch and GrabResponse services.
It is the first such move by the company to adjust the prices of its ride-sharing offers after the competition regulator, the Competition and Consumers Commission of Singapore (CCCS), lifted the restrictions in November.
Grab said on its website that the platform fee will go towards “financing initiatives that will make travel better, safer and safer” for both passengers and their drivers.
He added that two-thirds of the fee will be used to improve security and protection, among other things.
The remaining third of the fee will go to driver support initiatives, including benefits and training allowances.
“The platform fee (sometimes known as the service fee) is an industry standard fee that many online platforms, such as delivery services, transportation companies, and vacation rental sites, impose for the use of their platform / service, “Grab said. .
Its main ride-sharing competitor in Singapore, Gojek, introduced a platform fee of 70 cents in March.
Grab had also previously introduced a 20 cent platform fee for its food delivery service.
It had not been able to go ahead with a similar fee for its shared ride services due to restrictions imposed by the CCCS in 2018.
Grab faced wide restrictions after it breached rules prohibiting mergers that could significantly reduce competition in any market here, through its merger with Uber.
But CCCS said last month that it removed the restrictions following the introduction of a new point-to-point transportation regulatory framework.
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