Grab to raise base fare by S$1 from June across most ride-hailing services

GRAB will raise its current base fare by S$1 across most of its transport offerings from June 1, the ride-hailing and food delivery company announced on Tuesday. (see amendment note)

Grab said the increase is being implemented in response to feedback from drivers and tripartite partners that Grab's transport fares have not kept up with drivers' rising costs of providing the service.

The company has not revised fares since 2017. It only became able to do so after anti-competition sanctions by the Competition and Consumer Commission of Singapore were lifted in November last year. In December 2020, Grab began charging an additional S$0.30 as a platform fee.

"The (base fare) revision aims to improve earnings for driver-partners, enabling them to continue providing safe and high-quality service for passengers in a financially viable manner for the longer term," Grab said in a press statement.

The S$1 increase will apply to all of Grab's transport offerings in Singapore, except for the Standard Taxi, GrabHitch and GrabCoach service types.

The company charges a base fare of S$2.50 on its JustGrab service, S$2.75 for GrabCar and differentiated fares for other services, such as a S$10.50 base fare for GrabPet, which provides pet-friendly travel.

Up till June 30, 100 per cent of the S$1 base fare increase will go to drivers, Grab said. Thereafter, the increased fare will be subjected to the usual commission rate of up to 20 per cent.

Grab will also offer consumers S$1 vouchers for peak hour rides from June 1 to 14, to adjust to the new structure.

Separately, Grab rolled out several support measures for its drivers. For instance, it will provide additional incentives for drivers who complete food, grocery or parcel delivery jobs in designated high-demand areas.

Drivers will also be entitled to fixed value rebates based on the total number of transport and delivery jobs they complete during certain hours. The two-tiered rebate programme guarantees a rebate value, instead of tying rebates to ride fares, which may be impacted by low demand.

Grab's rental arm GrabRentals will be offering a rental rebate of up to S$45 per week, depending on the eligible hirers' current rental fees. Six of Grab's recommended rental partners have also committed to offering rental rebates for eligible hirers.

Drivers on Grab's rewards programme will have their current tier and benefits unchanged till September 2021.

Grab's prolonged medical leave insurance policy now also includes post Covid-19 vaccination protection should drivers be hospitalised due to adverse effects from the vaccine.

READ MORE: Grab to add platform fee after Singapore competition watchdog drops restrictions

Amendment note: Due to a source error, this article originally stated that Grab charges a S$2.50 base fare. It in fact charges different base fares across various services. The article has been amended to reflect this.