Platforms offer driver rebates, discounts to switch to non-petrol vehicles as higher fuel prices bite
GIG workers in ride-hailing and food delivery are feeling the pinch at the pump as petrol prices breach S$3.
Drivers currently pay an average of S$148.32 to top up a 48-litre fuel tank for a sedan with pump prices at S$3.09 a litre, from empty to full tank, before discounts kick in. Motorbike riders would pay about S$40.17 for filling a 13-litre tank from empty to full before discounts.
While Grab, Gojek and foodpanda have not instituted a fuel surcharge on customers, their US peers like Uber and Lyft have levied a temporary fuel surcharge to help drivers with rising petrol prices.
Platforms told The Business Times that they are monitoring the rise in fuel costs closely. Grab did not respond to a query about whether it would institute a surcharge, while foodpanda said there are no additional charges for customers and merchants to offset fuel costs.
Gojek said that it is continuing to review support measures and fares in line with market conditions for fair compensation to their driver partners.
"Our aim is always to make sure that prices are fair and competitive for consumers and driver partners," said a Gojek spokesperson.
foodpanda is raising riders' service fees - the fees that foodpanda pays to riders - to ease their operational costs, but declined to share specific figures.
Gojek has halved the quantum of levy it has been charging drivers since June 2021, from 20 per cent to 10 per cent, until the end of 2022. An additional S$3 incentive for pickups beyond 3 km was also instituted in June 2021 to last through 2022.
"Last year, we also announced reduced service fees and enhanced far pick-up incentives, helping drivers to take home more earnings per trip," said a Gojek spokesperson.
All the platforms have tie-ups with specific petrol stations for their drivers and riders, with varying fuel rebates and discounts based on the gig worker's performance tier on the platform. In most instances, the higher the tier, the greater the discounts and rebates for the driver or rider.
Rather than levying surcharges on consumers or merchants, it appears that platforms in Singapore are helping their drivers and riders with additional rebates and even discounts to switch vehicles. Grab's tie-up with Caltex gives its drivers up to 29 per cent discount at the pump.
"We have just introduced a 3-month commission rebate of 5 per cent for the first 199 completed trips to help our qualifying driver-partners defray some of their costs," said a Grab spokesperson.
foodpanda offers riders up to 30 per cent off fuel purchases at Esso petrol stations. This comprises a 20 per cent upfront discount and S$1 off S$10 e-vouchers.
Gojek currently has a 21 per cent discount for drivers, with different tiers receiving additional discounts. The lowest tier gets an additional 2 per cent discount, while the highest tier receives an additional 10 per cent discount.
foodpanda further offers incentives to switch to other non-petrol powered vehicles. The food delivery platform has partnered various e-bike retailers to give riders discounts of up to 30 per cent. There's also a partnership with a financing company to help riders with instalment payments to pay for an e-bike. However, riders will have to foot the bill for the S$10 e-bike theory test they will have to pass in order to ride the e-bike legally.
"Riders looking to convert to e-bikes can also purchase them at discounted prices from our e-bike partners. We also offer free bicycle rentals for riders who are keen to switch to bicycles," said a foodpanda spokesperson.
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