Tada commits S$1 million to put brakes on high-commission ride-hailing models

[SINGAPORE] Ride-hailing platform Tada is challenging rivals such as Grab and Gojek with a new S$1 million pilot initiative to help drivers reject high-commission platforms.

The initiative, named Hotpot, seeks to pull drivers away from high-commission platforms that use algorithms which squeeze drivers’ earnings and send ride-hail fares soaring, noted Tada.

On Wednesday (Dec 17), the platform’s founder Kay Woo said: “There is a major disconnect in the ride-hailing industry with rigid business models that have gone unchallenged for far too long.”

This initiative is a “community-driven reward system” that gives drivers points for every trip they complete.

Tada’s S$1 million investment will be used for cash incentives. The “Tada points” accumulated determine drivers’ eligibility for these additional cash incentives every Friday from 5 pm to 10 pm.

Since its launch in Singapore in 2018, Tada has had a zero-commission model for its drivers and has instead charged a fixed platform fee so that drivers can keep a greater share of their earnings. It has also been providing incentives when drivers complete more trips during peak periods.

How the Hotpot initiative works

Drivers are grouped based on their ranking – gold for the top 20 per cent, silver for the next block of 30 per cent, and bronze for the rest.

When all drivers collectively reach a target, participating drivers will enjoy an Upsized Hotpot with a two-times multiplier on their group rewards. 

Tada said that this mechanism shifts earnings from short-term, individual bonuses to a verifiable system where collective effort directly enhances all its drivers’ incomes.

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All contributions are recorded on the MVL blockchain to create a tamper-proof record. MVL is the parent company of Tada.

More than 27,000 drivers have pledged to participate in the initiative, noted Tada. The first week of the initiative ended last Friday, with over 8,000 Tada drivers participating and completing nearly 29,000 trips.

Pledged drivers earned more than 150 per cent compared with non-pledged drivers, with Tada contributing nearly S$260,000 in driver and rider incentives, said the ride-hailing platform.

MVL and Tada added that the Hotpot initiative is the first step in its long-term vision.

The next phase, scheduled for early 2026, will introduce community decision-making and dedicate enhanced capital to scale the initiative in the South-east region. Tada currently operates in Singapore, Thailand, Cambodia, Vietnam and Hong Kong.