Grab to pause changes to driver incentive scheme following backlash

[SINGAPORE] Ride-hailing service Grab will pause planned changes to its driver incentive scheme, following a backlash about the impact on drivers’ earnings and income stability.

The pause is to ensure that drivers’ concerns “are fully addressed before rolling out further changes”, Grab and the National Private Hire Vehicles Association (NPHVA) told The Business Times in a statement on Wednesday (June 25).

On Monday, the NPHVA had urged Grab to delay its revised incentive structure, which aims to reward consistent drivers but has lower overall payouts for drivers who complete 300 to 499 trips, among other changes.

The NPHVA had noted that drivers completing that range of trips make up a significant portion of full-time drivers, and will be the most affected by the reduction of incentives.

“NPHVA had shared feedback that some drivers rely on these incentives to supplement the basic fares and there were worries that the revised structure might make it harder for some to reach their target earnings,” the association and Grab said in the Wednesday statement.

While Grab’s intention was to reduce drivers’ hours and help them reach earning goals more quickly, the company “recognised that the planned changes could have been better implemented”.

Grab said that it remains committed to working with the NPHVA to address drivers’ concerns. The NPHVA likewise said that it will continue to engage Grab on workers’ interests.

Incentives under the revised scheme, called Grab Monthly Bonus, would have been broadly reduced.

Top-tier Diamond drivers would still have been able to earn up to 21 per cent in bonuses, by completing 651 rides instead of 701.

But drivers in the 300 to 499 ride range would have seen lower payouts: 4 per cent (Level 1), 7 per cent (Level 2), and 10 per cent (Level 3).

They would also get lower cash bonuses: no payout for Level 1, S$30 for Level 2, and S$50 for Level 3, compared to the current maximum of S$100.