RYDE is scrapping its driver commission charges entirely from Jan 2, 2024, in its move to “highlight its unwavering commitment to supporting the driver community and building a fairer platform for both drivers and riders”.

This would set “a new standard for the driver community” and introduce “the lowest-cost option for private-hire and taxi drivers”, the Singapore-based ride-hailing platform said on Friday (Dec 22).

Ryde added that its decision is expected to increase driver take-home pay, motivate drivers on the platform, and ultimately improve the overall rider experience.

Founder and chief executive Terence Zou said: “By removing driver commissions, we’re not only enabling our drivers to take home more of their well-deserved earnings, we’re making an investment in our driver community.”

Ryde’s website indicated that the 0 per cent commission initiative for drivers would be in place until the end of 2024.

According to its handbook for driver-partners for 2023, the company charges a “below-market rate” commission of 10 per cent.

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Thus far, Ryde’s move to introduce 0 per cent driver commission rates is the most drastic compared with its ride-hailing peers Grab and Gojek. They announced in October changes to their respective driver commission structures.

Grab rolled out dynamic commission rates from Nov 14 such that the distance travelled and time taken to pick up passengers would be accounted for when calculating drivers’ earnings. This was opposed to its earlier fixed commission rate of 20.18 per cent per trip, including goods and services tax.

From Nov 1, Gojek began offering a lower commission rate of 10 per cent as opposed to 15 per cent previously. The company also said it was committed to the cut at least till end-2024, adding that the move was part of the group’s efforts to defray increasing costs.