Introduction

Starting January 1, 2025, passengers using popular ride-hailing apps such as Gojek, Tada, and ComfortDelGro's CDG Zig will notice an uptick in their fares. All three operators are adjusting their platform fees, citing the need to meet new regulatory requirements under Singapore’s upcoming Platform Workers Act.

Gojek's Fee Increase

Gojek, Singapore's second largest ride-hailing service, will increase its platform fee by 30 to 50 cents per trip, adjusting the fee structure from a current range of 60 cents to a dollar to a new range between 90 cents and $1.50.

ComfortDelGro's Fee Adjustments

The biggest player in the market, ComfortDelGro, will also raise its platform fees by 30 to 50 cents, shifting from a flat rate of 70 cents to a variable fee based on distance and travel time, now ranging from $1 to $1.20.

Tada's Changes

Tada has informed its customers via email that it will hike its platform fee by 50 cents, meaning its fees will increase from the current range of 55 to 75 cents to a new range of $1.05 to $1.25, before the addition of goods and services tax (GST).

Driver Fees Extending Beyond 2024

Both Gojek and Tada will extend existing “driver fee” charges beyond 2024, with Gojek confirming that its current fee of $0.50 for trips under 10 km and $0.80 for longer trips will remain until March 31, 2025. Tada will keep its driver fees of 50 to 80 cents in place until June 30, 2025, with these amounts going directly to drivers to help alleviate their operating costs.

Background on the Platform Workers Act

The fee hikes stem from the new Platform Workers Act, approved by Parliament in September 2023, which aims to enhance worker protections for private-hire car drivers and delivery personnel who rely on these online platforms. This law mandates higher contributions to Central Provident Fund (CPF) accounts for younger platform workers and ensures that all platform operators must provide work injury compensation insurance comparable to traditional employees.

Operator Responses

Gojek has clarified that the purpose of the increased fees is to 'protect drivers’ earnings' and fund initiatives to maintain and improve ride-hailing services. Similarly, Tada has outlined plans to provide comprehensive insurance coverage and bolster drivers’ CPF contributions, stating they are committed to supporting the livelihoods of their driver-partners.

ComfortDelGro's Statement

ComfortDelGro’s CEO, Mr. Tommy Tan, emphasized that the adjustments to CDG Zig’s platform fees aim to support enhanced welfare initiatives for drivers under the new legislation.

Market Reactions

As the ride-hailing landscape evolves, other operators like Grab and Ryde are being closely monitored to see if they will also implement similar fee increases in light of the changes.

Worker Participation and Sentiment

Since the announcement of the Platform Workers Act, over 8,000 platform workers have opted in for higher CPF contributions, which suggests a positive reception to the evolving protections for workers within the gig economy. As cab driver Ang Li Wei noted, 'Knowing that I will have Work Injury Compensation insurance gives me peace of mind,' highlighting the growing importance of financial security and health benefits for platform workers in Singapore.

Conclusion

Stay tuned for further updates as the industry adapts to these significant legislative changes!