Grab Singapore will raise the minimum fare for its drivers by fifty cents starting on November 24 in an effort to increase its drivers' earnings on short-distance trips under three kilometers.
In a joint statement with the National Private Hire Vehicles Association (NPHVA) on November 17, Grab stated that the increase would be entirely funded by the ride-hailing company and would not affect passenger fares.
With the exception of GrabHitch, nine-seater, thirteen-seater, and hourly rental services, the fare increase will be implemented for the majority of fixed-fare, on-demand services. According to the statement, drivers using JustGrab services will now have to pay a minimum fare of S$5.80 per ride instead of S$5.30.
The change will help drivers who make less money on short trips, where operating expenses like fuel or electricity use and car rental payments account for a larger share of the total fare.
After talks between Grab and NPHVA, a group connected to the National Trades Union Congress (NTUC), the measure was passed.
NPHVA executive secretary Raven Lee, who called the move a "step forward", said, "The 50-cent minimum fare increase translates to up to 9 per cent increase in minimum fare."
Alvin Wee, head of country operations and transportation for Grab Singapore, stated that the raise shows the company's dedication to its drivers' well-being.
"We are focused on co-creating solutions that address pressing concerns while ensuring the overall health of the ride-hailing industry," he added.
The National Taxi Association (NTA) will now be officially recognized by Grab to represent taxi drivers on its platform in accordance with the Platform Workers Act, according to a separate joint statement released by Grab and NTUC on November 17.
The announcement coincided with a signing ceremony for an agreement between Grab and NTUC-affiliated NTA on November 17.
The statement claims that the collaboration between Grab and NTA is the most recent to occur between Grab and the three NTUC associations: the National Delivery Champions Association (NDCA), NTA, and NPHVA.
All three platform work associations have been formally recognized by Grab, making it the first platform operator to do so.
The NPHVA and NDCA were officially recognized by Grab in March to represent delivery workers and private-hire drivers, respectively.
The signing was a significant milestone for platform workers, according to Yeo Wan Ling, assistant secretary-general of NTUC.
"This strengthens our collective voice and allows us to work closely with Grab to address key challenges faced by our platform workers, including earnings, safety and working conditions," Yeo, who is also the adviser to NDCA, NPHVA and NTA, told the Straits Times.
