SINGAPORE – Starting from Nov 24, Grab Singapore will increase the minimum fare for its drivers by 50 cents, in a move aimed at boosting their earnings on short-distance trips under 3km.
The increase will be fully funded by Grab, and will not impact passenger fares, said the ride-hailing firm in a joint statement with the National Private Hire Vehicles Association (NPHVA) on Nov 17.
The fare increase will be applied to most fixed-fare, on-demand services except GrabHitch, nine-seater, 13-seater and hourly rental services. This means that for JustGrab services, drivers will see a minimum fare of $5.80 per ride, up from $5.30, said the statement.
The adjustment will address the lower earnings faced by drivers for short trips, where operational costs such as vehicle rental instalments and fuel or electricity consumption form a higher proportion of the total fare.
The measure comes after discussions between Grab and NPHVA, which is affiliated with the National Trades Union Congress (NTUC).
“The 50-cent minimum fare increase translates to up to 9 per cent increase in minimum fare,” said NPHVA executive secretary Raven Lee, who called the move a “step forward”.
