SINGAPORE — From Nov 1 until at least the end of 2024, ride-hailing company Gojek will lower the commission that it takes from drivers who use its platform, reducing it from 15 per cent to 10 per cent for every trip.
The move is aimed at tackling an ongoing supply crunch afflicting the point-to-point transport sector, which has resulted in higher surge fares and longer waiting times for passengers.
In a media alert on Thursday (Oct 19), Gojek cited the growing demand for ride-hailing services and higher operating costs for drivers as the reasons for reducing its commission rate, or "service fee".
"Reducing the service fee will help to increase drivers' take-home earnings while ensuring Gojek's services remain reliable and accessible for consumers," said a Gojek Singapore spokeswoman.
She added that the company's efforts to boost driver supply throughout the day will also help to improve the ride-hailing experience.
From Nov 1, Gojek will be adding a transaction fee of between 10 and 60 cents for passengers who use cashless payment methods to pay for their rides. It is the first time Gojek is introducing such a fee.
The company called this "standard industry practice", and said the amount charged will be tiered based on distance travelled.
"This will not impact your overall earnings," the company told its drivers in a blog post on Thursday.
It said the new fee will be reflected in customer receipts as a new "payment transaction fee" component. To help offset this fee and increase ridership, the company will offer a new promo code for a 15 per cent discount off Gojek rides, capped at $5, from Nov 1.
The other changes that will kick in from November include a revised incentive scheme for drivers that will now take into account their ride acceptance rate, which must be at least 60 per cent.
Before the Covid-19 pandemic struck in early 2020, Gojek used to take a 20 per cent cut from its drivers.
This was halved to 10 per cent in June 2021 — a move the company said was meant to boost driver earnings as the ride-hailing sector was being hit hard by the coronavirus.
In February 2023, it raised its driver commission back to 15 per cent, citing Singapore's strong recovery from the pandemic and greater use of ride-hailing services.
It said at the time that the 15 per cent commission would remain in force for at least 12 months, and the company chose not to restore it to the full 20 per cent due to the high fuel prices and operational costs at the time.
Since then, fuel prices have remained high.
Before discounts, 92-octane petrol, which can be used by the majority of petrol vehicles here, is now $2.85 at Caltex and Esso, and $2.84 at SPC, compared with about $2.70 in February.
Certificate of entitlement premiums have also shot up during this time, hitting new records.
Rival Grab charges its drivers a commission of up to 20.18 per cent, including goods and service tax, while Tada does not charge its drivers any commission.
Singapore's largest taxi operator, ComfortDelGro, which has its own ride-hailing app, Zig, charges its drivers a commission ranging from five per cent to 10 per cent of total fares.
Both ComfortDelGro and Tada impose transaction fees for passengers who pay using credit and debit cards, though for ComfortDelGro this is only for street-hail trips.
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This article was first published in The Straits Times. Permission required for reproduction.