Gojek to raise service fee for Singapore drivers from February 2023

Renald Yeo

Renald Yeo

Published Mon, Dec 19, 2022 · 11:51 AM
    • According to Gojek, its service fee will not be reverted to 20 per cent, after consultations with drivers, along with levers such as high fuel prices and rising operating costs in the market.
    • According to Gojek, its service fee will not be reverted to 20 per cent, after consultations with drivers, along with levers such as high fuel prices and rising operating costs in the market. PHOTO: BT FILE

    DRIVERS on ride-hailing service Gojek in Singapore will see the service fee they pay for each trip increase to 15 per cent from February next year, up from the current 10 per cent.

    The revision is in line with current market conditions, Gojek said on Monday (Dec 19), adding that Singapore continues to recover strongly from the Covid-19 pandemic.

    The service fee, or commission, refers to a set percentage amount drivers pay to Gojek for each completed trip.

    “As Singapore continues to recover strongly from the pandemic, with more people using ride-hailing services, it is prudent for us to review our service fee in line with current market conditions,” said a Gojek spokesperson.

    Gojek’s service fee was 20 per cent previously, until it was slashed to 10 per cent in June 2021 during the thick of the Covid-19 pandemic to improve drivers’ earnings.

    According to Gojek, its service fee will not be reverted to 20 per cent after consultations with drivers, along with levers such as high fuel prices and rising operating costs in the market.

    DECODING ASIA

    Navigate Asia in
    a new global order

    Get the insights delivered to your inbox.

    At present, competitor Grab’s service fee stands at 20 per cent, while Ryde charges a 10 per cent service fee, according to information from the companies’ websites.

    Gojek will also be extending its “driver fee” initiative to at least June 2023, it said. The fee is a flat S$0.50 or S$0.80 additional charge, depending on distance travelled, and goes directly to drivers to help offset high fuel prices, Gojek said. It was originally slated to end on Dec 31, 2022.

    Separately, ride-hailing operator and Gojek competitor Tada announced on Monday in a push notification to users that Tada’s own driver fee move will similarly be extended to June 2023.

    Gojek additionally intends to introduce changes to its driver incentive scheme, such that eligible drivers may qualify for service fees as low as 0 per cent.

    The revisions will support parent company GoTo Group’s strategy to “accelerate its path to financial independence”, Gojek said. The latest announcement comes a month after GoTo announced plans to lay off 12 per cent of its workforce to curb costs.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Copyright SPH Media. All rights reserved.