Grab’s New Platform Fee Sparks Public Debate
Singapore’s Competition and Consumer Commission (CCCS) has opened the floor for the public to weigh in on Grab’s proposal to introduce a small, but official, platform fee for riders using its ride‑hailing services.
The Bite‑Sized Fee
- S$0.30 per ride — which bumps up to S$0.32 when GST is added.
- Grab says the tag is there to keep the wheels turning safely, bank the operational costs, and, shall we say, give drivers a little extra love.
Why Grab’s Saying “Let’s Pay More to Stay Safe”
Grab insists that “investing heavily” in safety means better rides for both passengers and drivers. Their claim? This fee is just the standard fare in the industry, a small price for a big promise.
A Glimpse into the Past: 2018’s Big‑Bite Decision
September 2018 saw CCCS issue an infringement decision against the merger between Uber and Grab. Key points included:
- Grab’s purchase of Uber’s Southeast Asian business came with a 27.5% stake for Uber.
- CCCS dubbed the deal a substantial lessening of competition in Singapore’s ride‑hailing market.
- The fine? Over S$13 million.
- Both companies were ordered to mitigate the merger’s impact on drivers and riders, and keep the market as competitive as a game of chess.
The Fine Print: Pricing Policy Restrictions
Under the 2018 injunction, any changes to pricing rules, driver commissions, or product options must first get the green light from CCCS. The proposed platform fee would tick this box, meaning it would need approval from the watchdog.
What Comes Next?
CCCS will review Grab’s application after the community has voiced its thoughts. The final verdict—whether the fee gets green‑lit or not—happens after a public consultation.
Original Source
This article was first published in The Business Times. Permission is required for reproduction.
