In a significant update for ride-hailing users in Singapore, four major platforms—Grab, Gojek, CDG Zig, and Tada—are set to increase platform fees starting January 1, 2025. This move comes in response to the upcoming Platform Workers Act, aimed at improving welfare and protection for platform workers. Here’s what you need to know about these changes and their implications for commuters and drivers.
Grab’s Fee Adjustments
Grab, Singapore’s leading ride-hailing platform, will raise its platform & partner fee from S$0.70 to S$0.90 per trip. The additional revenue will fund initiatives including:
- Central Provident Fund (CPF) contributions for drivers.
- Work injury compensation coverage.
- Platform maintenance and service improvements.
For Grab’s food, groceries, and parcel delivery services, fees will rise from S$0.40 to S$0.60 per order.
Gojek’s Fee Increase
Gojek will adjust its platform fees by S$0.30 to S$0.50 per trip. The company stated that the changes aim to:
- Protect driver earnings.
- Support new requirements under the Platform Workers Act.
- Enhance and maintain its service offerings.
ComfortDelGro’s Changes via CDG Zig
ComfortDelGro, Singapore’s largest taxi operator, announced a fee increase from S$0.70 to a variable range of S$1 to S$1.20 per trip. The fee variation depends on factors like distance and travel time.
These adjustments aim to:
- Support CPF contributions and insurance coverage for drivers.
- Offset operating costs tied to the Platform Workers Act.
Tada’s Fee Update
Tada will implement a S$0.50 increase per trip, excluding GST. The platform highlighted the need to maintain and enhance its features while complying with government mandates under the Act.
What is the Platform Workers Act?
The Platform Workers Act, effective January 1, 2025, introduces critical protections for gig workers, including:
- Mandatory CPF Contributions: Workers born after January 1, 1995, must contribute to CPF, with optional participation for older workers.
- Work Injury Compensation: Companies must provide insurance coverage equivalent to that of regular employees.
- Legal Representation Framework: Enhanced rights for platform workers to represent their interests.
As of December 2024, over 8,000 platform workers have opted in for higher CPF contributions.
Implications for Commuters and Drivers
While the fee hikes may result in slightly higher fares for commuters, they bring significant benefits to drivers by:
- Securing retirement savings through CPF contributions.
- Offering financial safety nets in case of work-related injuries.
- Enhancing overall welfare through government-backed initiatives.
How This Impacts Ride-Hailing in Singapore
These changes reflect a broader effort to professionalize gig work in Singapore, balancing the interests of workers, commuters, and platform providers. While the cost of rides may increase slightly, the improved benefits for drivers could ensure a more stable and motivated workforce.
Stay informed about how these adjustments shape the ride-hailing landscape in Singapore.
