Singapore Grab drivers to receive nearly half-dollar minimum fare increase

The fare hike, fully funded by Grab, will not impact passenger fares, the company said in a joint statement with the National Private Hire Vehicles Association (NPHVA) on Nov. 17, as reported by The Straits Times.

The increase will exclude GrabHitch, nine-seater, 13-seater, and hourly rental services, according to the Business Times.

A man walks past a Grab office in Singapore March 26, 2018. Photo by Reuters

Grab stated that the fare increase is aimed at supporting drivers on short trips under 3 km, where operational costs such as fuel and vehicle rental account for a significant portion of the total fare.

Raven Lee, executive secretary of NPHVA, noted that it translates to a 9 percent rise in minimum fare, providing a "concrete earnings improvement for drivers."

Alvin Wee, Grab Singapore’s head of transport and country operations, emphasised that the change reflects the company’s commitment to driver welfare.

"We are focused on co-creating solutions that address pressing concerns while ensuring the overall health of the ride-hailing industry," he said, as quoted by The Straits Times.

In a separate announcement the same day, Grab and the National Trades Union Congress revealed that Grab will formally recognise the National Taxi Association (NTA) to represent taxi drivers on its platform under the Platform Workers Act.

This makes Grab the first platform operator in Singapore to formally recognize all three Platform Work Associations, including NTA, NPHVA, and the National Delivery Champions Association.

These agreements grant the associations legal standing to negotiate on behalf of workers on issues such as fair earnings, welfare, and work conditions.