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HanoiOn the morning of December 7, hundreds of GrabBike drivers turned off the app to protest the reduction of each trip from 20% to more than 27.2%.
Most drivers believe that this income is too high and are concerned about a sharp decline in real income in an increasingly difficult life context due to the impact of the epidemic.
In the early afternoon, the number of drivers stopped at Duy Tan (Cau Giay) Street, where Grab’s Hanoi office was increasing.
Hundreds of drivers gathered in front of Grab’s office in Cau Giay on the morning of 12/7. Image: Anh You
Manh, a driver who has driven the GrabBike for 3 years, shared that with a 7.5km trip the fee is 75,000 VND, after deducting the app usage fees and taxes of almost 21,000 VND, he only received around 53,000 VND. However, he said that if you include the cost of gas, the phone, repair and maintenance of the car … he actually only received about 40,000 VND. As for short trips of about 2-3 km, the driver can only get 50% of the price of the trip. So, like many other drivers, you want Grab to calculate the deductible rate reduction to guarantee the driver’s income as before.
Son, who has run GrabBike since 2019, said that each month he sends his wife and children to Thanh Hoa an average of 6-7 million after deducting food and living expenses … To reach this level, every day It takes between 15 and 16 hours to drive. “I am very concerned that next time I will not have enough to take care of my family, that I will not be able to live from this profession when the deduction rate increases to more than 27%. I support paying taxes but I want Grab to share it with the driver. it was very tiring or reduced the fee to use the app, “said Son.
Drivers continued the strike in the early afternoon of December 7 and began to congregate on other streets. Image: Anh You.
Two days ago, they only had to pay 20% of the application fee and receive about 80% of the income per trip. Drivers with annual income of more than 100 million VND must pay a personal income tax of 1.5% and a VAT of 3%.
Now, Grab has increased the trip discount rate to 27.272%, including the 20% app usage fee (no change) and plus VAT. Grab took this step after Decree 126 came into effect, which changed the way the value added tax (VAT) is calculated with the technology transportation service.
Grab must declare and pay 10% VAT on the total income that customers pay for each trip, instead of the driver paying 3% VAT on the actual income and the company paying 10% VAT on the discount . Earned as before.
To offset the VAT rate, Grab has increased rates for some services, but drivers say the increase is not enough to offset the reduction in their actual income. Some worry that if Grab continues to raise fees to offset VAT, customers will turn to other apps, causing their revenue to decline further.
Explain the increase in fees to offset VATGrab said it was subject to a portion of VAT to share with consumers and driving partners. The company also believes that rates “remain competitive enough” and that drivers can reduce their income by approximately 7% per year if they do not increase their base rates. With the new rate (up to 5-6%), Grab calculated, drivers only reduce their income by about 1% a year.
Anh You
