Grab, Gojek drivers say they are earning less; Grab says the income dip is ‘seasonal’

SINGAPORE: Grab and Gojek drivers have noticed a dip in their incomes over the past six months, but Grab, the largest ride-hailing firm here, said this is seasonal. 
Mr Lee Chin Chye, 56, used to make S$300 to S$500 (US$230 to US$380) driving 10 hours a day. This started declining about six months ago and he now makes about 10 per cent less, even though he drives the same number of hours.
He blames this on lower fares on the Grab platform.
“Competition (among the platforms) has a lot to do with it, the falling demand from passengers also has to do with it,” said Mr Lee, who only takes bookings on Grab. 
CNA spoke to eight private-hire drivers, and all who use Grab or Gojek said fares are now lower and their incomes have in turn fallen. Three drivers who have not seen a decline operate only on TADA, known for its zero-commission model.
Neither Grab nor Gojek answered CNA’s queries about whether they have reduced their fares.
Grab is the dominant player among five main ride-hailing firms in Singapore, with 50.2 per cent market share in 2022, according to data platform Measurable AI. This is followed by Gojek with 17.7 per cent, ComfortDelGro with 15.1 per cent and TADA with 11.1 per cent. Ryde is the smallest player with 5.9 per cent.
The falling income is a growing concern, especially for younger drivers or those with financial liabilities, drivers said.
A 31-year-old Gojek driver, who did not want to be named, said the 10 per cent hit to his earnings has been “tough” to take but he has no plans to quit.
He lost his previous job due to a workplace injury and has been a private-hire driver for five years to support his five children. 
Another driver with loans to pay and a five-year-old child to feed is Grab driver Mr Lee, who did not want to give his full name. 
His income has fallen by about 20 per cent over the past six months. While he used to earn about S$300 a day for 10 hours of work, he now earns around S$250. 
“I have to cut down on travel, eating at restaurants. The prices (of goods) are all going up but (my income) seems to be going down,” said the 56-year-old. “Sometimes, once a month, it happens that I have to take a personal loan to sustain (my expenses) for a while.” 
The rising cost of living, including for petrol, is making things worse, he said. “It’s actually a double whammy.”
Driver earnings are affected by the balance of supply and demand, and this fluctuates depending on the season and events, a Grab spokesperson said. 
It said that during periods of high demand, such as festivals or major events, fares and earnings across the industry tend to rise.
“Earlier this year, we saw strong demand driven by the festive period – New Year and Lunar New Year spreading across January and February – as well as several high-profile concerts in (the first quarter) which led to higher demand and fares in the industry,” said the spokesperson. 
For instance, in March, American pop star Taylor Swift’s sold-out Eras Tour concert drew over 368,000 concertgoers, many of whom were tourists.
Demand typically dips during the school holiday season in June for public schools and from July to August for international schools with more people travelling out of Singapore, Grab said. 
“This is an annual occurrence,” it said. 
It added that in the coming months, drivers may see more passenger demand. 
“We are seeing an uptick in demand following the school holidays, and anticipate even higher demand in the lead up towards the later half of the year where more high-profile events are taking place, (such as) Formula 1,” the spokesperson said. 
Private-hire drivers’ earnings are not going down because there are more of them. Land Transport Authority figures show that the number of vocational licences for private-hire drivers fell slightly from 54,054 in January to 53,536 in June. 
The bigger concern for drivers is competition between the ride-hailing platforms.
“I believe all these tech companies try to compete with one another, but in doing so, they are putting their interests (above) the drivers’ interests,” said one 67-year-old Grab driver, who declined to be named. 
Agreeing, a driver who operates on both the TADA and Grab platforms, who only wants to be known as Mr Tan, said it is only natural that with more competition fares would be lower. 
“You can’t expect to charge high fares, if not who wants to take (the ride)? Everyone has TADA, Ryde, Grab, they can search for the lowest prices,” said the 72-year-old. 
Drivers on TADA, who said their incomes have not changed, said they use the smaller platform despite getting fewer bookings as they do not have to pay TADA commission.
However, one driver did not expect the zero-commission model to be a long-term feature. 
“I am enjoying this now, but I don’t think it will always be like that, unless TADA finds a way to make a profit from another avenue,” said one 55-year-old part-time driver, who only wants to be known as Mr Ng. 
He added that ride-hailing firms, in trying to get more market share, often dangle incentives to attract drivers. But these incentives are pared down for experienced drivers. 
TADA said it remains committed to its zero-commission model, and instead charges a “minimal platform fee” on each ride.
The other firms have also made changes to their commission structure to better compensate drivers. 
Gojek from November last year has reduced the commission collected from drivers from 15 per cent to 10 per cent until at least the end of 2024. 
Grab used to charge a fixed 20.18 per cent commission, but switched to a variable commission rate in November to more fairly compensate drivers who travel a longer distance to pick up a passenger, for instance. 
The Grab spokesperson said the firm recognises that “the rising cost of living remains a top concern for our driver-partners”. 
It offers drivers support in the form of subsidised insurance packages, and discounted dental and healthcare consultations. Eligible drivers can also get petrol and car servicing discounts at selected locations. 
Gojek said that to ensure drivers’ earnings remain competitive and sustainable, it maintains a minimum fare per trip. To support drivers and boost demand for rides, it regularly gives discounts to passengers, its spokesperson said.
Gojek drivers also get benefits such as petrol rebates and medical leave insurance. 
The three platforms have also introduced a “driver fee” since 2022, which is charged to passengers and passed down to drivers to help them manage rising fuel costs.