SINGAPORE: Four ride-hailing operators in Singapore will be raising their platform fees by up to S$0.50 (US$0.37) from Jan 1, 2025, in a move they partly attribute to costs arising from the upcoming Platform Workers Act.

Grab, the leading ride-hailing platform in Singapore, will increase its fees from S$0.70 to S$0.90 for commuters, it said in a statement on Tuesday (Dec 24).

The new "platform & partner fee" will support Central Provident Fund (CPF) contributions, work injury compensation (WIC) coverage and other welfare initiatives for its platform workers, as well as platform maintenance and service improvements, it added.

For its food, groceries and parcel delivery services, its fees will go up from S$0.40 to S$0.60.

Gojek will also raise its platform fee by S$0.30 to S$0.50 per trip, with the operator saying on Tuesday these changes are to "protect drivers and their earnings in support of the Bill" on top of improving and maintaining its services.

Similarly, ComfortDelGro, Singapore's largest taxi operator, said on Tuesday it will raise its platform fees. Commuters will be charged S$1 to S$1.20 - the exact cost is dependent on factors such as distance travelled and travel time - and up from the current flat rate of S$0.70.

This will apply to trips booked through the CDG Zig app, DBS PayLah! app and Kris+ app.

The hike will go towards "enhanced protection and welfare initiatives that are part of the new Platform Workers Bill, providing a more rewarding and secure future for our drivers", said Mr Tommy Tan, chief executive of ComfortDelGro Taxi.

The company added the adjustment will help defray the operating expenses to support the Ministry of Manpower’s (MOM) new initiatives for platform workers under that act, including CPF contributions and enhanced insurance coverage.

TADA also said it will increase its platform fee by S$0.50 per trip, excluding GST.

"Besides maintaining current features and developing new ones to provide a better ride-hailing experience for you, this adjustment is also essential to support the implementation of the government’s Platform Workers Bill," an email sent to customers on Tuesday read.

CNA has contacted Ryde on whether it will similarly adjust its platform fees.

PLATFORM WORKERS ACT

Under the new Platform Workers Act, effective from Jan 1, platform workers will receive better protection in three areas - CPF contributions, financial compensation if they are injured on the job, as well as a legal framework for representation.

Increased CPF contributions will be mandatory for platform workers born on or after Jan 1, 1995. Older workers may also opt in if they want to. 

MOM said last week that over 8,000 platform workers had since opted in for higher CPF contributions under the Act.

The Act will also mandate that all platform companies provide platform workers with work injury compensation insurance at the same level of coverage as employees.