Private-hire group urges Grab to delay bonus revamp over fears that drivers’ earnings will be hurt

[SINGAPORE] The National Private Hire Vehicles Association (NPHVA) has urged Grab to delay changes to its driver incentive scheme, saying it is “particularly concerned” about the impact on drivers’ earnings and income stability.

The call, made on Monday (Jun 23), comes just over a week before the ride-hailing platform intends to roll out its revised incentive structure, which aims to reward consistent drivers.

In a Facebook post, NPHVA requested that Grab delay the implementation of the change “for further deliberation”.

“We are particularly concerned about the impact on drivers completing 300 to 499 trips monthly, who make up a significant portion of full-time drivers and will be most affected by the reduction of the monthly streak bonus,” said the association.

Under the current Grab Streak Bonus framework, private-hire drivers in the lowest tier of Grab’s four-level rewards system can earn a S$30 cash bonus, along with 8 per cent of their monthly nett earnings, if they make 300 to 499 trips a month.

Drivers can level up by maintaining a minimum of 300 rides for each successive month. Incentives increase accordingly: S$80 and a 10 per cent bonus under Level 2, and S$100 with a 13 per cent bonus under Level 3.

The maximum bonus under the current scheme is 21 per cent, awarded to Diamond Tier drivers who complete more than 701 rides a month.

However, this is set to change from Jul 1. The updated scheme has lower overall payouts for drivers who complete 300 to 499 trips, and a new feature where drivers can pre-book time slots to earn more.

The changes

Drivers told The Business Times they were only informed of the impending changes on Jun 20, via an in-app notification.

In the message, seen by The Business Times, Grab said it was “enhancing our incentive programme to make it more accessible and inclusive”, with a new feature called Streak Zones.

Under the revised scheme, renamed Grab Monthly Bonus, overall incentive payouts are broadly reduced.

Top-tier Diamond drivers will still be able to earn up to 21 per cent in bonuses, now by completing 651 rides instead of 701.

But drivers in the 300 to 499 ride range will see lower payouts: 4 per cent (Level 1), 7 per cent (Level 2), and 10 per cent (Level 3).

They will also get lower cash bonuses: no payout for Level 1, S$30 for Level 2, and S$50 for Level 3, compared to the current maximum of S$100.

Drivers can earn more through the new Streak Zones feature. These are two-hour time slots that drivers must pre-book to qualify for a 5 per cent cashback on fares earned during the period. 

Drivers who complete a target number of Streak Zones within a designated timeframe may also receive an extra cash bonus of between S$25 and S$68.

A risk to earnings

NPHVA adviser Yeo Wan Ling made the same post as the association on Facebook, raising the worry that earnings could fall for the “majority of our average drivers”.

The NTUC assistant secretary-general also raised concerns over the availability and allocation of Streak Zones slots as “there is no assurance that sufficient slots will be available” for all drivers who wish to participate.

It is hard for drivers to work out whether they will be better off compared to the previous structure, she added. “Drivers need to be able to formulate the best strategy for their daily earnings, but these changes make earnings less predictable.”

NPHVA continues to call “for more meaningful consultation” with the union before Grab rolls out changes that affect driver earnings – in line with its previous calls for proper engagement on policies that impact drivers’ livelihoods.

Yeo added that all Grab drivers are welcome to join Grab’s upcoming Grab a Drink session on Jun 26 to discuss how the new scheme could affect their earnings.

In response to BT’s queries, a Grab spokesperson said that it has been in close consultation with the association regarding the upcoming changes to its incentive programme.

The spokesperson added that the changes were designed to better support part-time drivers who work only a few hours a day, “while continuing to reward” full-time drivers for their commitment.

Commenting on the Streak Zones, the spokesperson said the feature was co-developed with driver-partners through pilot tests and focus groups in May 2024.

Based on their feedback, Grab shortened each session to two hours – down from three – with more flexible break times. It also expanded zone coverage across Singapore, excluding only five areas: Tuas, Seletar, Changi Airport, Sentosa and Lim Chu Kang.

The company also introduced a 5 per cent per trip rebate in place of fixed payouts, and improved the in-app interface to help drivers better track their progress.

Payouts under the Streak Zones are also made the next day, thus improving cashflow for drivers, added the spokesperson.  

“We believe these changes will enhance driver-partners’ earnings, while enabling Grab to better match driver supply to periods and areas with higher unmet demand,” said the spokesperson, adding that the platform remains committed to engaging with the NPHVA on these changes.