TADA follows in Gojek's footsteps with temporary 'driver fee' as operating costs spike

FOLLOWING in the footsteps of ride-hailing operator Gojek, TADA will implement a temporary drivers' fee to help drivers with rising fuel costs from Apr 4.

On Saturday (Mar 19), Gojek had said it would raise trip start fares from Mar 31, and put in place a temporary flat fee for 2 months amid rising operating costs and fuel prices in Singapore.

Gojek will increase its trip start fare by S$0.50 for all GoCar trips, and S$0.80 on GoCar Premium and GoCar XL services. A flat fee of S$0.50 will be applied to all Gojek trips less than 10 kilometres in distance, while trips 10 km and above will be subject to an S$0.80 flat fee.

Gojek said the full amount of the driver fee will be retained by its drivers, and will not be subject to prevailing commission rates. TADA similarly has said the entire fee will go to drivers.

TADA will add a S$0.50 flat fee to trips S$18 and below, and an S$0.80 flat fee to trips S$18.10 and above. This fee will stay in place until May 31 when it will be reviewed if fuel prices drop.

In addition, TADA will roll out a driver campaign to provide fuel rebates to drivers, with a daily S$10 rebate for drivers completing 19 trips a day. The campaign will run from Apr 4 to Apr 17 and may be extended.

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"We do not take any decision to change fares lightly and know that the rising cost of living impacts all our users," said Lien Choong Luen, general manager of Gojek Singapore. He added that passengers can look forward to promotions and discounts to help offset changes to fares.

Jonathan Chua, general manager of TADA, said: "We recognise the operating cost pressures our drivers face in an environment of rising fuel prices and the temporary Driver's Fee will offer some respite in rising prices. This coupled with the rebates from the driver campaign, we hope will help drivers mitigate the additional costs."

TADA will offer passengers S$1 vouchers "to ease riders into the temporary Driver's Fee", with limited redemptions daily till Apr 30, 2022.

Fares for rides under Gojek's GoTaxi service, which are subject to the taxi's meter, will be exempt from the trip start fare increase and additional driver fee.

"Rising costs at the pumps directly impact our driver partners' ability to work and earn and we've heard firsthand the challenges they're facing. The introduction of this fee will help provide much-needed financial support and earnings protection for them," Gojek's Lien said. "Our driver partners are the backbone of the Gojek platform and our priority is on maintaining their welfare and ensuring that they can build a sustainable livelihood on our platform."

The measures come as petrol and diesel pump prices spiked across oil retailers in Singapore in recent weeks, fuelled by a global surge in oil prices amid the Russia-Ukraine war.

TADA noted that pump prices hit a peak on Mar 10 with 95-octane petrol at S$3.23 a litre. "As of Mar 22, 2022, a 95-octane petrol is going for S$3.05 a litre - a drop from the peak, but still a staggering 12 per cent increase compared to prices less than a month ago in February when the same went for S$2.70 a litre," the company said on Wednesday (Mar 23).

In a Facebook post in response to the Gojek announcement, labour MP Yeo Wan Ling, adviser to the National Taxi Association and National Private Hire Vehicles Association, noted that slow recovery of passenger volumes, rising costs to business and long driving hours have been taking a toll on drivers.

"To ensure the sustainability of the driving profession and the manageability of the long hours of driving, platform operators can continue to fine-tune their commission structures and to make more transparent their incentive structures and benefits programmes," Yeo said.