Grab today announced a holistic support programme comprising various new and enhanced initiatives to provide stronger support for driver-partners in sustaining a livelihood on the Grab platform.
During the height of the pandemic last year, ridership plummeted drastically, and has yet to return to pre-pandemic levels[1]. With the introduction of Phase 2 Heightened Alert (P2HA), ridership numbers have further declined. P2HA and last year’s Circuit Breaker have taken place amid the backdrop of increasing costs for operating and maintaining a vehicle – including fuel, maintenance and repair costs – while fares on the Grab platform have remained constant since 2017.
Collectively, these factors have a significant impact on driver-partners’ take-home earnings.
The initiatives under this holistic programme thus aim to alleviate driver-partners’ immediate financial strain and improve their overall earnings for longer-term viability. Based on the activity levels from the first week of P2HA, an average driver-partner[2] could recover up to 50% of his or her lost earnings through this support programme, before including earnings from delivery jobs.
Creating Greater Short-Term and Long-Term Earning Opportunities
<NEW> Additional incentives for completed delivery jobs
- Driver-partners are encouraged to opt-in to do deliveries for GrabFood, GrabMart and GrabExpress, to maximise their earning opportunities.
- Grab will be providing additional incentives for driver-partners who complete delivery jobs in designated high demand areas.
<NEW> Revision in fare structure
- Grab will introduce a $1 increase of base fare for all transportation services (except Standard Taxi, GrabHitch and GrabCoach service types).
- This will take effect from 1 June, and 100% of this $1 will go to driver-partners from 1 June to 30 June. Grab will not collect commissions from this $1 during this stipulated period.
- This move comes after deep discussions with driver-partners and tripartite partners, who have feedback that Grab’s transport fares have not kept up with drivers’ rising costs of providing the service. Grab has not revised transport fares since 2017.
- The revision aims to improve earnings for driver-partners, enabling them to continue providing safe and high quality service for passengers in a financially viable manner for the longer term.
- Grab understands that consumers are all managing different changes that have come with the current tightened measures. To help consumers adjust to the new fare structure, and continue to travel safely for their essential needs, Grab will be offering $1 vouchers for peak hour rides from 1 June to 14 June.
Alleviating Financial Strains
<NEW> Tiered cash rebates for completed transport and delivery jobs
- To provide partners with further financial support, driver-partners would be entitled to fixed value rebates based on the total number of transport and delivery jobs they complete during pre-designated hours.
- To ensure the programme can provide meaningful support, the two-tiered rebate programme is designed to provide a guaranteed rebate value instead of tying it to ride fares which may be further depressed due to the low demand.
<NEW> Lowering fixed costs through rental rebates
- GrabRentals will be offering a rental rebate of up to $45 per week depending on the eligible hirers’ current rental fees.
- Six of Grab’s Recommended Fleet Partners[3] have also committed to offer rental rebates for eligible hirers.
Enhancing Driver-Partners’ Safety Net
<NEW> Maintaining current benefits for driver-partners
- Driver-partners are ensured that their current tier and all benefits tied to it under the Emerald Circle Rewards Programme will remain unchanged from now till September 2021.
<ENHANCED> Greater earnings protection for partners affected by COVID-19
- Learning from the Circuit Breaker, we have enhanced our income protection packages:
- Higher payouts for driver-partners across all tiers under our Prolonged Medical Leave Insurance policy, which now also includes post COVID-19 vaccination protection should they be hospitalised due to adverse effects from the vaccine.
- Expanded coverage to include potential loss of income by driver-partners if they are quarantined or hospitalised due to COVID-19.
- Additional rental waivers for driver-partners who are hirers of GrabRentals.
Future Planning with Driver-Partners
<ONGOING> Skills upgrading courses
- To better prepare driver-partners for the future, they have access to the GrabAcademy, which contains personal development courses to help boost their digital literacy, amongst other areas.
- For those who are looking to transition to another career, there are also upskilling courses to help prepare them for roles in the digital, finance and business spaces.
- Driver-partners who have completed any registered courses on GrabAcademy are also eligible for bonuses, up to three times a year.
Andrew Chan, Managing Director, Transport, Grab Singapore said: “Many of our driver-partners have expressed worries and concern over the viability of their livelihood on the platform as the volatile pandemic situation continues. Many driver-partners have pivoted to also taking on delivery jobs to supplement their earnings, and Grab wants to show further support by introducing short-term initiatives to reduce their financial stress during this period. We have also re-evaluated and will be making a revision to our fare structure. We trust that this holistic approach of lowering costs, increasing earning opportunities and enhancing their safety net will address the main challenges our driver-partners are facing right now and better protect them for the future.”
“This period of tightened measures has definitely impacted ridership and my overall earnings. I have experience doing delivery jobs during the circuit breaker last year, so switching to do more deliveries now is not as difficult. While my earnings have dropped, it is are not as bad as if I were to continue with taking only transport jobs,” said Benny Tay, Grab driver-partner.
[1] Referencing Minister for Transport, Mr S. Iswaran’s comments that taxi and private-hire car ridership in April was at 80 per cent of pre-pandemic levels before P2HA measures kicked in. Since P2HA began, this has fallen to about 55 per cent; https://www.straitstimes.com/singapore/additional-27-million-of-support-for-cabbies-private-hire-drivers-amid-significant-fall-in
[2] Based on the activity levels from the first week of P2HA, an average driver-partner refers to one who accepts both transport and delivery jobs, and is entitled to rental rebates.
[3] These Recommended Fleet Partners are Lion City Rentals Pte Ltd; AutoExchange Leasing Pte Ltd; KH Leasing Pte Ltd; MS Carz Leasing Pte Ltd; Prime Transport & Limousine Services Pte Ltd; and Roset Limousine Services Pte Ltd
