Grab Can Now Change Its Prices & Commission As Restrictions by Authorities Are Lifted

Remember when Uber was still around?

It was a magical time, when promo codes for rides were offered every week and meeting more than five friends at a time wasn’t a crime.

But then, in March 2018, Uber and Grab did the unthinkable, the unexpected, and the, well, illegal. 

They merged.

As a result, the two ride-hailing firms were fined a combined $13 million by the Competition and Consumer Commission of Singapore (CCCS).

CCCS deemed the merger as an infringement of Section 54 of the Competition Act, which prohibits mergers that could significantly reduce competition in any domestic market.

CCCS also imposed a freeze on Grab’s pricing algorithm and driver commission rate, meaning they couldn’t alter their pricing policies nor commission rates.

Now, two years later, the restriction has finally been lifted.

Grab Can Now Change Its Prices & Commission As Restrictions by Authorities Are Lifted

In addition, Grab can now also charge an extra 30 cents for each ride in the coming months, according to ST. 

The lifting of this restriction isn’t due to the emergence of other ride-hailing firms in the market, such as Gojek and Tada Mobility.

Rather, it’s because of the introduction of a new point-to-point transport regulatory framework.

The framework addressed the uneven playing field between taxi drivers and private-hire drivers.

Now, if you’re a regular Grab user, you might be worried that your rides to work to avoid being late every day will now be a lot more pricey.

Thankfully, it won’t. At least not for the near future. 

Will Maintain Price Structure for Next 6 Months

In response to the news, Grab said it would stick with its current pricing structure and policies “for at least the next six months, given the Covid-19 situation”.

There will, however, be a new platform fee for its transport services that will be implemented later.

“The platform fee will enable us to maintain and improve safety measures, cover other relevant operating costs as well as look after our driver-partners’ welfare sustainably,” said Andrew Chan, managing director of transport for Grab Singapore.

New Framework Prohibits Exclusivity Arrangements

As part of the new framework, private-hire drivers are free to drive for other ride-hailing operators, as any exclusivity arrangement is prohibited.

The framework will also help commuters, as it’ll ensure that point-to-point fares are transparent and clearly communicated.

Both taxi operators and ride-hailing firms can also be sanctioned if their drivers are involved in too many accidents or commit too many offences.

These measures will address concerns of safety and unreasonable pricing.

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