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Straits Times
16 hours ago
- Automotive
- Straits Times
Grab to pause changes to bonus scheme after calls from national private-hire drivers' group
This update was broadcast to all drivers on Grab's platform via an in-app message at around 4.45pm on June 25. PHOTO: LIANHE ZAOBAO Grab to pause changes to bonus scheme after calls from national private-hire drivers' group SINGAPORE – Ride-hailing platform Grab will delay the roll-out of changes to its incentive schemes, which were initially slated for July 1. In a joint statement by Grab and the National Private Hire Vehicles Association (NPHVA), both parties said on June 25 that Grab has decided to pause the planned changes following discussions with the NPHVA and in response to feedback from Grab drivers. This move was made to ensure that concerns from NPHVA and Grab drivers are fully addressed before further changes are rolled out, they added. This update was broadcast to all drivers on Grab's platform via an in-app message at around 4.45pm on June 25. In the message, Grab said there will be no changes to the existing monthly bonus scheme for now. After Grab announced its upcoming revisions to the existing monthly bonus scheme on June 20 , the NPHVA publicly requested the ride-hailing operator to delay the changes on June 23 due to concerns over reduced earnings for most full-time drivers. This is because the upcoming Streak Zones scheme will cut the percentages of bonuses across tiers and trip milestones . For instance, the bonus for the 300th to 499th rides, which now starts at 8 per cent for drivers at the lowest level, will be halved 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, when the Streak Zones scheme takes effect, drivers at the lowest incentive level will no longer receive this cash bonus while the amounts for the next two tiers will be cut to $30 and $50, respectively. The Streak Zones scheme, trialled in May 2024, allows drivers to pre-book two-hour time slots, mostly during peak periods, where they drive in high-demand areas. Drivers earn a cashback of 5 per cent on every completed trip. Grab and NPHVA said on June 25 that the association had provided feedback that some drivers rely on the bonuses to earn more money beyond the basic fares they receive for completed trips. Additionally, they noted there were worries that the revised bonus scheme might make it harder for some drivers 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,' said Grab and NPHVA. Both parties said Grab remains committed to working closely with NPHVA to 'find effective solutions' that address drivers' concerns , and that it deeply appreciates the association's continued guidance in supporting Grab drivers . They added that NPHVA appreciates Grab's partnership and will continue engaging the ride-hailing operator to champion workers' interests. Grab had previously initiated a feedback session with its drivers on June 26 to discuss the changes in its bonus scheme. It told its drivers in the in-app message on June 25 that this session will proceed as scheduled. Drivers told The Straits Times that those who complete fewer than 500 trips each month will see a drop in their earnings, and that the 5 per cent cashback on completed trips in each Streak Zones slot is marginal. Esther Loi is a journalist at The Straits Times, where she covers transport issues. Join ST's WhatsApp Channel and get the latest news and must-reads.
Business Times
18 hours ago
- Automotive
- Business Times
Grab to pause changes to driver incentive scheme following backlash
[SINGAPORE] Ride-hailing service Grab will pause planned changes to its driver incentive scheme, following a backlash about the impact on drivers' earnings and income stability. The pause is to ensure that drivers' concerns 'are fully addressed before rolling out further changes', Grab and the National Private Hire Vehicles Association (NPHVA) told The Business Times in a statement on Wednesday (June 25). On Monday, the NPHVA had urged Grab to delay its revised incentive structure, which aims to reward consistent drivers but has lower overall payouts for drivers who complete 300 to 499 trips, among other changes. The NPHVA had noted that drivers completing that range of trips make up a significant portion of full-time drivers, and will be the most affected by the reduction of incentives. 'NPHVA had shared feedback that some drivers rely on these incentives to supplement the basic fares and there were worries that the revised structure might make it harder for some to reach their target earnings,' the association and Grab said in the Wednesday statement. While Grab's intention was to reduce drivers' hours and help them reach earning goals more quickly, the company 'recognised that the planned changes could have been better implemented'. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Grab said that it remains committed to working with the NPHVA to address drivers' concerns. The NPHVA likewise said that it will continue to engage Grab on workers' interests. Incentives under the revised scheme, called Grab Monthly Bonus, would have been broadly reduced. Top-tier Diamond drivers would still have been able to earn up to 21 per cent in bonuses, by completing 651 rides instead of 701. But drivers in the 300 to 499 ride range would have seen lower payouts: 4 per cent (Level 1), 7 per cent (Level 2), and 10 per cent (Level 3). They would also get lower cash bonuses: no payout for Level 1, S$30 for Level 2, and S$50 for Level 3, compared to the current maximum of S$100.
