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Singapore ride-hailing services raise fares due to labor law

Four ride-hailing operators in Singapore – Grab, Gojek, ComfortDelGro (CDG) Zig, and Tada – will raise their platform fees by up to S$0.5 (around US$0.37) starting January 1, 2025.

The increase is attributed to costs related to the upcoming Platform Workers Act.

Grab will raise its fees for commuters from S$0.7 to S$0.9 (around US$0.51 to US$0.66). The fees for its delivery services will go from S$0.4 to S$0.6 (around US$0.29 to US$0.44).

The company said this adjustment will fund welfare programs, including Central Provident Fund (CPF) or social security savings scheme contributions and work injury compensation.

Gojek plans to increase its fees by S$0.3 to S$0.5 (around US$0.22 to US$0.37) per trip. The company said these changes will support drivers while maintaining service standards under the new Act.

CDG Zig will implement a variable platform fee structure, ranging from S$1 to S$1.2 (around US$0.74 to US$0.88). This replaces its current flat fee of S$0.70 (around US$0.51).

Tada confirmed that it will also increase its platform fee by S$0.50 (around US$0.37) per trip, excluding GST.

The Ministry of Manpower’s Platform Workers Act, effective the same day, requires increased CPF contributions, work injury compensation insurance, and representation rights for platform workers.

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