In a move that no one saw coming (or everyone saw coming), Grab made a U-turn on a new incentive scheme for their drivers.
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Still here? Well, here’s what happened. But before that, you need to know this: private-hire drivers don’t only earn from passenger fares. They also get special incentives from the ride-hailing platforms.
For example, a Grab driver who accepts around 900 rides a month can earn over $1,300 in incentives alone.
The goal here is simple: to keep drivers loyal to the platform.
A New Incentive System
On 20 June at 2pm, Grab informed its drivers that the incentive system was about to change.
They’ve been testing a new feature with selected drivers. These drivers could book a two-hour slot to drive in high-demand areas, and all rides within that slot would be auto-accepted.
During this period, drivers would receive a 5 percent cashback on their fares.
Grab announced that from 1 July 2025, this system would be made available to all drivers.
On the surface, it sounds like a win. It’s another way for drivers to earn more.
And for riders, it’s helpful too. After all, booking a Grab ride during peak hours in high-demand zones often feels like trying to score a Taylor Swift ticket.
The Catch
Here’s where it gets tricky.
Alongside the new system, the existing normal incentives would be either removed or reduced. It depends on how many trips a driver completes and what rank they hold.
Right now, if a driver completes 300 trips, they get a bonus percentage for trips 301 to 499. From the 500th trip onward, this bonus increases again.
The exact percentage depends on various factors like driver ranking. It’s confusing, but what you need to know is this: the more you drive, the more you get.
But to even qualify for these bonuses, you need to hit 300 trips first.
In short, the normal incentive will become harder to unlock, and the bonuses will be smaller for many drivers.
However, if you drive a lot and have a high rank, you might not feel the impact.
The Backlash
This change sparked a strong reaction.
Even though drivers could now book those two-hour slots, many felt it was no longer truly flexible.
Some believe the new model forces them to drive during specific hours just to earn decent incentives. That defeats the purpose of being your own boss.
Night shift drivers, in particular, are hit harder by this.
There are also concerns about whether drivers will even be able to book the slots they want. All of this makes earnings less predictable.
Grab Hits the Brakes
The backlash was strong enough that the National Private Hire Vehicles Association stepped in.
They asked Grab to delay the changes first.
And on 25 June, it’s announced that for now, the new incentive system is on hold.
It’s still unclear whether Grab will tweak the scheme or simply roll it out at a later date. What we do know is that they’ve started a feedback session with drivers to gather more input.
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