National private-hire drivers' group calls on Grab to hold off change in bonus scheme
National private-hire drivers' group calls on Grab to hold off change in bonus scheme
SINGAPORE – The National Private Hire Vehicles Association (NPHVA) has asked ride-hailing platform Grab to delay the roll-out of changes to its incentive schemes slated to for July 1 'for further deliberation'.
In an in-app message to drivers on its app at 2pm on June 20, Grab announced that from July 1, Streak Zones would be available to all its partner drivers, along with revisions to the existing monthly bonus scheme.
Streak Zones was previously trialled from May 2024. It allows drivers to pre-book two-hour time slots where they drive in high-demand areas, during which all their bookings are automatically accepted. These slots are mostly during peak periods.
Drivers earn a cashback of 5 per cent on every completed trip. 'Payouts are made the next day, improving cash flow for driver-partners,' Grab told The Straits Times.
However, NPHVA is concerned that the changes would result in reduced earnings of most full-time drivers, said Ms Yeo Wan Ling, adviser to the association, in a Facebook post on June 23.
Grab's monthly bonus scheme, previously called Grab Streak Bonus, has three levels, each with its own bonus structure. The more trips a driver completes in a month, the higher the percentage bonus on their earnings, with rates increasing across tiers and trip milestones.
From July 1, the percentage bonuses will also be cut. For instance, the bonus for the 300th to 499th rides, which now starts at 8 per cent for drivers in the lowest level, will be slashed to 4 per cent.
Currently, those who clock at least 300 rides also earn a cash bonus of $30, $80 or $100, depending on their incentive level.
But from July 1, drivers in the lowest incentive levels will not receive this cash bonus, while this is also cut for the next two tiers to $30 and $50 respectively.
However, those in the highest level who complete 651 or more rides can still earn up to 21 per cent in bonuses, down from the 701 rides needed in the current scheme.
Weekly bundle bonuses ranging from $25 to $68 will also be given to drivers who complete more Streak Zones.
Ms Yeo, who is also assistant secretary-general of National Trades Union Congress and an MP for Punggol GRC, said these changes make earnings less predictable.
'The added complexity makes it harder for drivers to work out whether they'll be better off compared to the previous structure,' she said.
NPHVA reiterated its call for Grab to have 'more meaningful consultation' with the association before making changes that affect driver earnings, Ms Yeo added.
She also said there is no assurance for drivers that there will be sufficient Streak Zones slots available for everyone.
In response, Grab told ST that its decision to reallocate funds from its monthly bonus scheme to expand Streak Zones would ensure sufficient slots for those who wish to participate.
Grab did not respond to ST's query on whether it will delay the launch of the new Streak Zones feature.
The ride-hailing operator said this move will enhance drivers' earnings, while enabling the platform to better match driver supply to time periods and areas with higher unmet demand.
It said that the change will better support part-time drivers who are on the road for a few hours each day, and reward full-time drivers for their commitment.
Grab said the Streak Zones feature was co-created with its driver-partners through small-scale trials and focus group discussions.
Improvements were made based on drivers' feedback, such as cutting Streak Zone slots from three to two hours, and shortening the required durations of staying online from 85 to 70 per cent of the slot.
In comments on Ms Yeo's post, some drivers called for higher base fares and a more transparent pricing system, as well as to completely remove such incentive schemes.
Grab has initiated a feedback session with its drivers on June 26 to discuss the change in its bonus scheme.
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