Grab minimum fare to rise by at least 50 cents to support drivers; passengers unaffected

Grab Singapore will increase the minimum fare for its drivers by 50 cents with effect from Nov 24, in a bid to boost drivers' earnings on short-distance trips under 3km.

The price increase will be fully funded by Grab and will have no impact on customer prices, said the private-hire company in a press release on Monday (Nov 17).

All Grab services except for GrabHitch, 9-seater, 13- seater and hourly rental services, will be subject to the price increase.

The minimum fare for JustGrab services, for example, will increase from $5.30 to $5.80. 

This increase in fares follows talks between Grab Singapore and the National Private Hire Vehicles Association (NPHVA), aiming to address lower earnings on short trips, where operational costs like fuel make up a larger share of the fare.

The fare adjustment will translate to an increase of up to 9 per cent in drivers' minimum fare, according to Raven Lee, executive secretary of NPHVA.

"We are focused on co-creating solutions that address pressing concerns while ensuring the overall health of the ride-hailing industry," said Alvin Wee, Head of Transport and Country Operations for Grab Singapore, who added that the fare increase is a concrete demonstration of Grab's commitment to the welfare of their driver-partners.

Grab formally recognises National Taxi Association

In a separate statement on the same day, Grab announced that it officially recognises the National Taxi Association (NTA), the union for taxi drivers, to represent drivers on its platform. 

The announcement followed an agreement signing between Grab and NTA, which is part of the National Trades Union Congress (NTUC).

According to the statement, NTA is the third platform work association to represent platform workers who work with Grab, making Grab the first platform operator to formally recognise all three platform work associations.

Earlier in March, Grab formally recognised the NPHVA and National Delivery Champions Association (NCDA) to represent private hire drivers and delivery workers respectively.

This means that NDCA, NPHVA and NTA will be able to legally negotiate on behalf of workers on matters including fair earnings, welfare and work conditions based on the formal agreements, according to the statement.

Yeo Wan Ling, assistant secretary-general of NTUC and advisor to NDCA, NPHVA and NTA said that the signing is a milestone for platform workers.

"This strengthens our collective voice and allows us to work closely with Grab to address key challenges faced by our platform workers, including earnings, safety and working conditions," she added.

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dana.leong@asiaone.com