Singapore’s ride-hailing boom faces a crisis: driver shortages

As Singapore’s economy and tourism recover, demand for ride-hailing is slated to rise. But there may not be enough drivers to keep up.

The city-state is facing a shortage of ride-hailing drivers as they grapple with stalled earnings amid higher rental and fuel costs. One of them is JT, a 41-year-old who works as a full-time Grab driver.

“Incentives were really good in earlier years,” he says. “In 2018, when Gojek entered Singapore, incentives were around 20% of our earnings.”

Photo credit: GoTo

Now, he says that they account for “very little” of his earnings. Not only are incentives less generous than before, the incentive targets – such as minimum number of rides fulfilled – are higher. JT estimates that his earnings fell around 15% in 2024.

For ride-hailing platform operators, the driver shortage is a problem they need to address – and fast. Grab, Gojek, Tada, as well as ComfortDelGro’s taxi and private-hire car subsidiary tell The Business Times that they expect the ride-hailing sector to grow in 2025.

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Singapore’s private-hire car (PHC) population reached an all-time high of 90,383 in December 2024, Land Transport Authority data indicated. And yet, there are just 54,881 holders of PHC driver vocational licenses.

That’s higher than the 47,471 holders in August 2022 but still less than the peak of 56,121 in January 2021.

However, the actual supply of rides is difficult to measure. After all, drivers can choose when or how long they drive.

A Grab spokesperson says that overall supply has improved in 2024, but there is still a shortage of active drivers during peak hours or major events such as concerts.

Photo credit: Grab

Some drivers may have chosen to exit the platform “due to various reasons,” says the spokesperson, without elaborating.

Walter Theseira, associate professor of economics at the Singapore University of Social Sciences, says that ride shortages have been an issue since the country’s economy recovered from the pandemic.

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