Riders get approval to tap e-scooter trade-in grant

About one in five of GrabFood's e-scooter riders and one in three eligible Foodpanda riders have had their requests to trade in e-scooters approved by the Land Transport Authority (LTA). They are the first to benefit from the $7 million e-scooter Trade-in Grant (eTG) set up by the Government and the three major food delivery companies in Singapore. Under the scheme, eligible riders can trade in their e-scooters for up to $1,000 each to switch to electric bicycles or personal mobility aids. Those who opt to switch to bicycles can receive up to $600 each.

In response to queries, Grab, which has the most e-scooter riders on its platform, said LTA had confirmed some 18% of its e-scooter riders have received the approval as of yesterday. Foodpanda, which has about 960 e-scooter riders, said more than a third of its eligible riders have received approval from LTA. Deliveroo, the least affected among the three firms, did not give an update as to how many riders had received LTA's approval. Both Deliveroo and GrabFood said they expect more applications for the trade-in grant in the coming weeks.

The grant was announced on 8 Nov amid concerns from riders that their earnings would be hit hard by a ban on using e-scooters on footpaths. Riders who have received the approval can now buy their new modes of transport before trading in their e-scooters with their respective firms.

About 1,000 out of some 7,000 food delivery riders using e-scooters applied to the three major food delivery firms to trade in their e-scooters last Friday, the first day of the trade-in scheme. It is unclear how many of the 7,000 will meet the eligibility criteria for the grant, with food delivery companies yet to give numbers. For example, GrabFood riders will have to complete at least one delivery between 9 Oct and 7 Nov to qualify for the trade-in grant.

The entire clearance process for applications involves both firms and LTA, and can take up to three working days. Grab told successful applicants that the in-principle approval is granted on the condition that riders do not sell their new vehicles or transfer ownership to someone else for six months after they have received payment.

According to the LTA, a breach of terms and conditions set out under the eTG scheme may result in a rider's disqualification. Riders who are disqualified will have to return all payments they received from the scheme. Riders have until 31 Dec to apply for the trade-in grant.