Grab's new driver incentive scheme limited to top 18,000 performers; old schemes cut

RIDE-HAILING giant Grab on Thursday said it will replace previous loyalty and recognition incentive schemes with a quarterly commission rebate scheme available to the top 18,000 drivers on its platform.

It did not specify whether drivers will know if they qualify for these incentives, which offer those with the "most commissions each quarter" a 12 per cent rebate on their commissions paid to the firm, starting July 1.

The incentive programme, which is "tailored for the changing environment", comes with additional criteria. This includes a cancellation rating of 10 per cent or lower, and a driver rating of more than 4.5. Additionally, drivers would also have to turn on the "auto-accept" function indefinitely to qualify.

This translates to the drivers paying 17.6 per cent of the fares to Grab, instead of the usual 20 per cent, said Grab.

However, this could lead to greater uncertainty for drivers, as the criteria are no longer completely transparent to them, and to a greater extent than under the previous schemes.

Under a previous scheme, drivers received a 10-per-cent commission rebate if they managed 200 or more trips each month for at least three consecutive months.

These rebates went up to 55 per cent for eligible drivers.

However, current programmes such as these, as well as monthly incentive bonuses and birthday rewards will cease on June 21, Grab said, adding that driver's targets and rewards will be prorated to reflect the change.

Grab's temporary Covid-19 driver support measures, which includes a reduction of its upfront commission by 50 per cent for all its drivers, will also end on June 21.

However, its Weekly Cover scheme, which provided eligible drivers with S$45 or S$85 each week depending on the tier they were in, had ended on May 31.

Grab's latest move comes despite falling demand for ride-hailing services due to the Covid-19 pandemic.

It said in a separate announcement on Thursday that it will launch a series of initiatives that help drivers upgrade themselves through courses if they want to.

Competitor Gojek also has existing partnerships with Workforce SG (WSG) to offer driver-partners career skills courses, and is looking into workshops in other areas including financial literacy and career planning. It had also teamed up with DBS Bank to roll out financial literacy classes that its drivers can attend for free.

Grab said in a message to its drivers on Thursday: "Our community has been badly hit by Covid-19. Ride demand has fallen, and we have tried our best to help with months of funding support for our driver-partner community."

Grab had earlier announced cost-cutting measures for its staff, including an up-to-20-per-cent pay cut for its senior management and encouraging employees to go on voluntary no-pay leave.

"Ride behaviour has and will change. And along with it, so must how we support you with maximising your earning opportunities beyond driving and deliveries, on our platform and outside of it," it added.

Competitor Gojek said its commission rebates scheme will continue through June 28.

"This will help drivers increase their take-home earnings as Singapore embarks on a gradual approach to reopening and as ride-hailing demand picks up progressively. As part of the scheme, driver-partners will receive service fee or commission rebates of between 60 per cent - the highest minimum rebate level offered by private-hire operators in Singapore - and 100 per cent, depending on their tier status in our driver benefits programme," Gojek told The Business Times.