News

Gojek Increasing Its Commission Fee to 15% After Reducing It to 10% During the COVID-19 Pandemic

2022-12-19 , 8:04 pm

Just as taxi and PHV rides are recovering to nearly pre-pandemic levels, Gojek decides to increase the commission it takes from its drivers.

From 1 February 2023, Gojek will increase the commission from 10% to 15%. Drivers will now keep 85% of the fare paid, instead of the current 90%.

Here’s why.

10% To 15%

Would this lead to fewer drivers on the road, which translates to higher fares?

Rival platforms like Grab charge their drivers 20% for commission, which was also the rate Gojek held before the pandemic.

This means that Gojek’s commission rate of 15% is still lower than other competitors, so perhaps drivers won’t run away after all.

Additionally, Gojek’s temporary drivers’ fee, which is paid by passengers and will not be charged a commission, will be extended to help drivers cope. This increases the prices of trips under 10km by $0.50, while those over 10km cost $0.80 more.

This temporary fee was first implemented in March and was supposed to expire in December 2022. It will be extended till 30 June 2023.

Adapt to Market Conditions

A spokesperson for Gojek stated that they had consulted drivers closely before making this decision.

Acknowledging that drivers face many challenges like increasing fuel prices and operational costs, Gojek decided to increase the commission to 15% instead of the regular 20%.

Additionally, Gojek stated that earnings for drivers are predicted to remain sustainable since the demand for rides is recovering to pre-pandemic levels.

Changes to Driver Incentive Scheme

Apart from the commission rates, Gojek also announced changes to its driver incentive scheme.

It will reward loyal drivers by allowing them to reduce the commission rates, even up to 0%. This depends on the number of trips made, average performance, and average ratings over three months.

These changes are meant to “maintain a strong, sustainable business in Singapore” in the long run. The changes will take place from 1 February 2023.

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Taxi and PHV Industry Recovering

According to data from the Land Transport Authority, there has been a rise in the number of taxis and private-hire vehicle (PHV) rides since April. Statistics showed that there are about 585,000 trips by taxis and PHVs daily.

Additionally, the number of rides in October was a 1.5% increase from the number in April 2022. Compared with the number of rides in October 2021, there is an increase of 10.5%.

These statistics signal that our taxi and PHV industry has recovered to 78.2% of pre-pandemic levels. You can read more about this here.