Grab looks to charge a platform fee for all rides in Singapore

Ride-hailing major Grab said it has submitted a proposal to the Competition and Consumer Commission of Singapore (CCCS) to introduce a S$0.32 platform fee to all transport rides in the city-state.

Photo credit: Grab

If approved, Grab will reinvest the money from the platform fee into the safety and security of their rides service. This includes maintaining and improving its app’s current features and rolling out new ones.

One such initiative is GrabProtect, which was launched to help curb the spread of Covid-19 by implementing features and various safety measures to keep driver-partners and passengers safe.

The CCCS said in a media release that it’s inviting public feedback on Grab’s proposal from now until August 11.

Tech in Asia has reached out to Grab to learn more about the proposed platform fee.

On September 2018, the government agency issued an infringement decision against Grab and Uber in relation to their merger, which the CCCS said had led to a “substantial lessening of competition.” As part of this, Grab was prohibited from changing its pre-transaction pricing without gaining approval from the competition watchdog.

In its latest application, however, Grab said that implementing the fee is aligned with ride-hailing industry norm. The company also noted that the fee will enable the startup to maintain and enhance the various safety measures while covering the relevant operating costs.

“A third of the funds collected through the platform fee will be committed towards providing benefits for driver welfare,” Grab said in its application.

Some additional enhancements Grab aims to put in place following CCCS approval include doubling the personal accident insurance for both rider and driver from US$10,000 to US$20,000, as well as rolling out additional training for driver-partners to improve safety, among others.