[Article has been updated on 11 December 2020, 12pm]
From December 18, ride-hailing giant Grab will start charging a platform fee of 30 cents for ride booked through the platform.
The fee will apply to all Grab rides except GrabHitch and GrabResponse services.
Previously, the company submitted an application to charge customers an $0.32 (including GST) per ride as a “platform fee”.
The news was announced by the Competition and Consumer Commission of Singapore (CCCS) in a media release on 28 July.
According to Grab, the fee will enable the company to maintain various safety measures and cover its relevant operating costs. The company told CCCS that the fee conforms to norms within the ride-hailing industry.
It also pointed out that its ride-hailing rival Gojek has levied a S$0.70 platform fee, whilst ride-hailing services in countries around the world also charge similar platform fees.
Grab highlighted that one third of the fee would go towards initiatives that support drivers, including benefits and training allowances.
On the other hand, two thirds would go towards improving safety and security, amongst other things.
The company’s acquisition of Uber’s Southeast Asian business in 2018 has rendered it unable to change its prices or products without approval from the CCCS.
The acquisition was an infringement of the Competition Act and as a result, Grab is required to maintain its pricing policies and product options and pre-transaction pricing for all products in its ride-hailing business.
However, it can apply to the CCCS to vary prices.
The competition watchdog is now collecting feedback from members of the public via email on Grab’s proposal to implement the new platform fees from today until August 11.
“A small platform fee will make a big difference to everyone using our platform and we hope you will support our application to CCCS,” said Grab.
Featured Image Credit: Free Malaysia Today
