Grab staff urged to take no-pay leave; driver financial support may not extend past June 1

GRAB is urging its staff to take no-pay leave voluntarily as the novel coronavirus outbreak continues to batter its business. The ride-hailing firm also told its drivers that it may not be able to provide further financial support if Singapore's partial lockdown measures are again extended, past June 1.

Grab said it has dug deep into remaining resources to fund an extension of financial assistance for its drivers as transport rides continue to plunge by double-digit percentages.

Andrew Chan, head of transport for Singapore, told drivers in an update that it moved funds from other benefit programmes (such as rewards, birthdays and cancellation compensation) and relied on voluntary donations from employees, which were matched dollar-for-dollar by the company.

Grab has provided assistance to drivers during Singapore's "circuit-breaker" period by halving its up to 20 per cent commission rate for all drivers, and additionally waiving the commission for drivers who rent their cars from Grab's vehicle rental arm.

Drivers renting their vehicles from GrabRentals will continue to have a 100 per cent reduction in commission, but from May 10 to June 1, they would have to complete at least 10 GrabFood or GrabExpress deliveries weekly to get the commission waiver. Those who choose not to will be subjected to a 5 per cent commission charge.

New GrabRental drivers signing on from May 4 to June 1 will get a 75 per cent commission reduction. They can also get the full commission waiver if they complete at least 10 GrabFood or GrabExpress deliveries weekly.

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The company's income support programme gives eligible drivers either S$85 or S$45 per week in weekly payouts, depending on the tier a driver is in. The programme will be extended till May 31.

But the firm warned that it might have reached the end of its rope for financial assistance.

"No one can be sure how long the situation will last but we are preparing for a long and difficult path ahead," said Mr Chan.

In the meantime, Grab is also looking at ways to create earnings opportunities for drivers, such as allowing them to take on delivery jobs.

As revenues dwindle, senior Grab leaders have taken a pay cut of up to 20 per cent, as announced on March 30.