Gojek imposes a temporary flat fee due to rising fuel prices
19 March 2022
Gojek, a ride-hailing company, announced on Saturday (March 19) that it will impose a temporary flat fee on all trips to assist its private-hire car drivers in dealing with rising fuel prices.
According to a company press release, the “driver fee” will go into effect on March 31 and will last for two months, until at least May 31.
All rides less than 10km in length will incur a S$0.50 flat fee, while trips longer than 10km will incur a S$0.80 flat fee.
The fee will be applied to all GoCar, GoCar Premium, and GoCar XL services, except GoTaxi, whose fares are based on the taxi’s meter.
According to Gojek, the temporary fee will not be subject to the company’s standard commission rates, and drivers will receive the full amount.
To compensate for these changes, the company announced that its ongoing “925” promotion will continue to be available for all trips booked through its platform. New users will also receive a discount coupon.
“Rising fuel prices have a direct impact on our driver partners’ ability to work and earn, and we’ve heard firsthand the challenges they’re facing,” Gojek Singapore general manager Lien Choong Luen said, adding that the temporary fee will provide “financial support and earnings protection” for drivers.
“We remain committed to providing safe and reliable rides at fair and competitive prices for both riders and driver partners, and we are committed to continuous improvement, which will help to build a stronger business and spur our growth in Singapore.”
Pump prices have been on an accelerated uptrend in recent weeks as a result of Russia’s invasion of Ukraine, and price volatility is expected to continue in the coming days, according to experts.
Motorists, particularly taxi drivers and private-hire car drivers who work long hours on the road, are already feeling the pinch.
When contacted on Saturday, Grab stated that it was closely monitoring the situation and would “continue to find ways to support (its) driver- and delivery-partners in mitigating the increase in operational costs.”
In addition to existing fuel rebates, the spokesperson stated that Grab had recently introduced a 3-month commission rebate of 5% for the first 199 completed trips to assist qualifying drivers in defraying costs.
“As a result of the recent increase in gasoline prices, certain sectors and industries have suffered.” “We are aware of how these cost increases reduce our driver-partners’ earning potential,” said Terence Zou, chief executive officer.
