CCCS seeks feedback on Grab's platform fee

The Competition and Consumer Commission of Singapore (CCCS) is seeking public feedback on Grab's application to impose a platform fee on riders for the ride-hailing company's services in Singapore.

Grab has applied to charge an extra $0.32 after GST for each ride as a "platform fee".

The fee will enable Grab to maintain and enhance the various safety measures and cover the relevant operating costs. The ride-hailing company told CCCS that this fee conforms to norms within the ride-hailing industry. It also noted that one third of the funds collected as a result of the platform fee will go towards providing Grab drivers with more welfare benefits.

In a separate statement, Grab said that some of these improvements could include providing Grab driver-partners with a training allowance to upskill and reskill, as well as boosting Grab's contribution to the GrabCar Medisave Match Programme.

This application comes after the CCCS issued directions to the ride-hailing company in September 2018, following the Grab-Uber merger which saw Uber selling its South-East Asian business to Grab for a 27.5% stake in Grab.

These directions, which require Grab to maintain its pre-transaction pricing, pricing policies and product options across its products, were intended by CCCS to lessen the adverse impact of the Grab-Uber merger. The directions would also keep the ride-hailing market "open and contestable", said the CCCS in a statement on 28 July 2020.

CCCS said it will consider public feedback in its assessment of Grab's application, including factors such as cost recovery and Grab's investment in passenger safety and driver welfare. More information on the public consultation is available on CCCS' website. Interested parties are invited to submit their feedback via e-mail at [email protected] by 11 August 2020.