Grab now free to change its pricing policies and driver commission rates
20 Nov 2020|1,342 views
Restrictions on Grab's ride-hailing service have been lifted, allowing the company to change its pricing policies and driver commission rates after a two-year freeze.
The operator is also free to charge an extra fee of about $0.30 for each ride in the coming months.


The consumer watchdog on 20 November 2020 said that it lifted restrictions following the introduction of a new point-to-point transport regulatory framework kicking in.
Grab, in response to news that restrictions were lifted, said it is committed to maintaining its current pricing structure and policies "for at least the next six months, given the COVID-19 situation". But a new platform fee for its transport services will be rolled out later, said Mr. Andrew Chan, Managing Director of Transport for Grab Singapore.
"The platform fee will enable us to maintain and improve safety measures, cover other relevant operating costs as well as look after our driver-partners' welfare sustainably. This introduction of a platform fee will be the only change we will be making to our fares for the time being," said Mr. Chan. More details about the fee will be announced at a later date.


Grab and Uber were issued a combined $13 million fine for the merger. Grab was also required to implement several measures to lessen the impact of the transaction on drivers and riders, and to keep the market open to new players.
It had to ensure its drivers were free to use any ride-hailing platform and remove Grab's exclusivity arrangements with any taxi fleet in Singapore. It also had to maintain its pre-merger pricing algorithm and driver commission rates. Uber was required to sell the vehicles of Lion City Rentals to any potential competitor who made a reasonable offer based on fair market value. Lion City Rentals was a car leasing firm owned by Uber.
CCCS had said in 2018 that the restrictions would be suspended if a competitor to Grab manages to secure 30% or more of total rides matched in the ride-hailing platform service for one month. But the CCCS said the start of a new point-to-point transport sector regulatory framework in October this year triggered the decision to lift the restrictions.


"The regulatory framework also ensures that point-to-point fares are transparent and clearly communicated to commuters, while leaving fare levels to be determined by market forces," it added. "CCCS will continue to work closely with the Land Transport Authority and Public Transport Council to ensure that the P2P sector remains open and contestable," the consumer watchdog said.
The National Private Hire Vehicles Association said in a Facebook post that it will continue working with Grab on issues of drivers' welfare and income sustainability following CCCS' announcement. It called for any fare adjustment or commission fees levied to be reasonable.
Restrictions on Grab's ride-hailing service have been lifted, allowing the company to change its pricing policies and driver commission rates after a two-year freeze.
The operator is also free to charge an extra fee of about $0.30 for each ride in the coming months.


The consumer watchdog on 20 November 2020 said that it lifted restrictions following the introduction of a new point-to-point transport regulatory framework kicking in.
Grab, in response to news that restrictions were lifted, said it is committed to maintaining its current pricing structure and policies "for at least the next six months, given the COVID-19 situation". But a new platform fee for its transport services will be rolled out later, said Mr. Andrew Chan, Managing Director of Transport for Grab Singapore.
"The platform fee will enable us to maintain and improve safety measures, cover other relevant operating costs as well as look after our driver-partners' welfare sustainably. This introduction of a platform fee will be the only change we will be making to our fares for the time being," said Mr. Chan. More details about the fee will be announced at a later date.


Grab and Uber were issued a combined $13 million fine for the merger. Grab was also required to implement several measures to lessen the impact of the transaction on drivers and riders, and to keep the market open to new players.
It had to ensure its drivers were free to use any ride-hailing platform and remove Grab's exclusivity arrangements with any taxi fleet in Singapore. It also had to maintain its pre-merger pricing algorithm and driver commission rates. Uber was required to sell the vehicles of Lion City Rentals to any potential competitor who made a reasonable offer based on fair market value. Lion City Rentals was a car leasing firm owned by Uber.
CCCS had said in 2018 that the restrictions would be suspended if a competitor to Grab manages to secure 30% or more of total rides matched in the ride-hailing platform service for one month. But the CCCS said the start of a new point-to-point transport sector regulatory framework in October this year triggered the decision to lift the restrictions.


The entry of licensed ride-hail operators Gojek and Tada Mobility also added to CCCS' decision to lift the restrictions on Grab
"The regulatory framework also ensures that point-to-point fares are transparent and clearly communicated to commuters, while leaving fare levels to be determined by market forces," it added. "CCCS will continue to work closely with the Land Transport Authority and Public Transport Council to ensure that the P2P sector remains open and contestable," the consumer watchdog said.
The National Private Hire Vehicles Association said in a Facebook post that it will continue working with Grab on issues of drivers' welfare and income sustainability following CCCS' announcement. It called for any fare adjustment or commission fees levied to be reasonable.
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