Grab Singapore is making a significant move to support its drivers by increasing the minimum fare by 50 cents, effective November 24. This decision, which will impact all services except GrabHitch, 9-seater, 13-seater, and hourly rental services, is a strategic move to boost drivers' earnings on short-distance trips under 3km. The price increase, fully funded by Grab, will not affect customer prices, ensuring a win-win situation for both drivers and passengers. This move comes after discussions between Grab Singapore and the National Private Hire Vehicles Association (NPHVA) to address the challenges of lower earnings on short trips, where operational costs like fuel make up a larger share of the fare. The fare adjustment will result in an increase of up to 9% in drivers' minimum fare, according to Raven Lee, executive secretary of NPHVA. Alvin Wee, Head of Transport and Country Operations for Grab Singapore, emphasized the company's commitment to the welfare of its driver-partners, stating that the fare increase is a concrete demonstration of this commitment. In a separate development, Grab also announced its formal recognition of the National Taxi Association (NTA), the union for taxi drivers, to represent drivers on its platform. This move is significant as NTA is the third platform work association to be recognized by Grab, making the company the first platform operator to formally acknowledge all three. Earlier this year, Grab had already formally recognized the NPHVA and National Delivery Champions Association (NCDA) to represent private hire drivers and delivery workers, respectively. This recognition empowers these associations to legally negotiate on behalf of workers on matters such as fair earnings, welfare, and work conditions, as outlined in the formal agreements. Yeo Wan Ling, assistant secretary-general of NTUC and advisor to NDCA, NPHVA, and NTA, hailed the signing as a milestone for platform workers, emphasizing the strengthening of their collective voice and the ability to work closely with Grab to address key challenges faced by their workers.
