Grab Singapore pauses planned incentive changes, drivers call for higher base fares
SINGAPORE: Incentive changes originally planned to help Grab drivers increase their earnings while driving in specific zones within a set timeframe have been put on hold, according to a joint statement by the National Private Hire Vehicles Association (NPHVA) and Grab on Wednesday (Jun 25).
"Following consultation with the NPHVA and in response to feedback from our driver-partners, Grab has decided to pause the planned incentive changes to ensure their concerns are fully addressed before rolling out further changes," the statement said.
It added that NPHVA had shared feedback that some drivers rely on these incentives to supplement the basic fares, and that there were worries the revised structure might make it harder for some to reach their target earnings.
"While Grab's intention was to help driver-partners reduce driving hours and reach their earning goals faster, Grab recognised that the planned changes could have been better implemented," the statement said.
An in-app message sent to drivers stated that the changes to the Grab Streak Bonus and Streak Zones incentives had "raised questions and uncertainty".
The planned changes will be paused with immediate effect for further review, said the message.
"This means that there will be no change to the existing Grab Streak Bonus and Streak Zones programmes."
Last week, Grab announced planned updates to its Streak Zones scheme that were set to kick in from Jul 1. It would allow drivers to pre-book two-hour time slots where they would drive, mostly during peak hours.
This would have given drivers a 5 per cent cash back on every completed trip, along with an additional cash bonus for reaching specific milestones. All trips completed under Streak Zones would also contribute toward Grab's monthly bonus milestones.
Before the rollout was paused, Grab told CNA that the scheme was designed to allow driver partners to benefit from both programmes simultaneously and achieve their earnings goals faster.
However, the NPHVA raised concerns with the incentive changes.
In a Facebook post on Tuesday, Ms Yeo Wan Ling, adviser to the NPHVA, said the scheme would affect drivers' earnings.
'Moving money away from the Streak Bonus that drivers are more familiar with, stable to rely on, could mean reduced earnings for majority of our average drivers,' she said.
"There's no assurance that sufficient slots will be available and in what arrangements for all eligible drivers interested to participate in these Streak Zones," she noted, adding that the changes "make earnings less predictable".
Drivers who spoke to CNA echoed these sentiments.
Full-time driver Mr Yeo said the proposed change was 'worse off' than the current incentives as it would not be easy to book slots in the streak zones and drivers would hence earn less.
Another full-time driver, Mr Dan Lim, said the proposed incentive was unfair to drivers like himself, who work from 7pm to 6am, outside of peak hours.
Night shift drivers must be treated fairly, especially with 'long distance pick up and short distance drop off', he said, adding that he barely earns a profit of S$50 (US$39).
'Most incentives go to daytime (drivers), not midnight,' he said.
Other drivers said the ride-hailing firm should focus less on such incentives, and instead raise the base fare for rides.
Mr Andy Lim, who has been a full-time driver with Grab for eight years, said the incentives make 'no difference' to him and are 'not that much'.
In order to benefit from the Grab Streak Bonus incentive, he said drivers need to automatically accept all bookings - this is not always worth their time if the pick-up location is too far away.
'Some fares are so low you feel like you're underpaid,' he said, adding that he once only made S$12 from an hour-long trip.
'I might as well go outside and work,' he said. 'If you include rental and petrol, I only earn S$8.'
Mr Tan, who has been driving full-time with Grab for the past two months, said many drivers are calling for better base fares, as incentives are often viewed as a form of "gamification" that pressures them to work harder.
'We are trading time for money, it is a tough balancing act trying to earn enough, trying to maintain my health, and time for friends and family,' Mr Tan told CNA.
'As a new driver, it is tempting to push for that 'one more fare', as it translates to money. But when fatigue sets in, it is dangerous for you and your passengers,' he added.
However, this has not stopped Mr Tan from worrying about hitting his daily targets.
'For example, today I am S$80 short and tomorrow I am sending my daughter at 9am for a camp. I will need to think about how to make up those numbers and sometimes you simply can't.'
'Freedom of time for a PHV (private hire vehicle) owner is a fallacy. I am blessed to have my parents' vehicle to drive (but) it is tougher for those who rent,' he said.
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