A discussion is currently unfolding in Singapore’s private hire sector, as the National Private Hire Vehicles Association (NPHVA) has officially called upon Grab to delay some upcoming changes to its driver bonus schemes. These adjustments were initially set to roll out quite soon, on July 1. However, the NPHVA is asking Grab to hold off “for further deliberation,” hoping for more time to discuss and review the new plans properly.
Grab had informed its driver-partners about these changes through a message sent directly within their app on June 20, around 2 PM. The company announced that starting from July 1, a new feature called “Streak Zones” would become available to all its partner drivers. This new system, which has been tried out since May 2024, allows drivers to “pre-book two-hour time slots” during peak demand periods in specific areas. During these slots, all their incoming bookings are “automatically accepted.” Grab also explained that drivers earn “a cashback of 5 percent on every completed trip” within these zones, with the added benefit that “payouts are made the next day, improving cash flow for driver-partners,” which certainly sounds appealing for drivers managing their daily earnings.
However, the NPHVA and many drivers are quite worried about these changes. Ms. Yeo Wan Ling, an adviser to the association and also a Member of Parliament for Punggol GRC, shared these concerns in a Facebook post on June 23. She highlighted that the NPHVA is concerned that the changes could lead to “reduced earnings of most full-time drivers.” Ms. Yeo also pointed out that the new system makes how much drivers can earn “less predictable,” which can be a real source of stress for those who rely on this income. She added that the new structure introduces “added complexity,” making it “harder for drivers to work out whether they’ll be better off compared to the previous structure.” Another significant worry she raised is that there is “no assurance for drivers that there will be sufficient Streak Zones slots available for everyone,” meaning drivers might not get enough chances to earn these new bonuses.
The percentage bonuses that drivers earn are going to be cut. For example, if a driver usually completed between 300 and 499 rides in a month, their bonus percentage, which used to start at 8 percent for those in the lowest bonus level, will now be slashed to just 4 percent. On top of that, drivers who complete at least 300 rides currently receive a cash bonus of either $30, $80, or $100, depending on their bonus level. But from July 1, drivers in the lowest bonus levels will no longer receive this cash bonus at all, while it will be reduced to $30 and $50 for the next two tiers respectively. There’s a slight upside for drivers in the highest bonus level, though: they can still earn up to 21 percent in bonuses if they complete 651 or more rides, which is a bit easier than the 701 rides needed in the old system to reach that top bonus. Drivers who complete more Streak Zones will also receive new “weekly bundle bonuses ranging from $25 to $68.”
Given these concerns, the NPHVA is strongly urging Grab to engage in “more meaningful consultation” with its driver-partners before putting these changes into action. They believe a deeper discussion is needed to truly understand and address how the changes will affect driver earnings.
The company said that their decision to move money from the old monthly bonus scheme to expand Streak Zones is intended to “ensure sufficient slots for those who wish to participate.” Grab also stated that these changes are designed to “enhance drivers’ earnings,” and to “better support part-time drivers who are on the road for a few hours each day,” while still aiming to “reward full-time drivers for their commitment.” They emphasized that the Streak Zones feature was actually “co-created with its driver-partners through small-scale trials and focus group discussions.” Grab also highlighted that they made improvements based on drivers’ direct feedback, such as cutting Streak Zone slots from three to two hours and lowering the required online time from 85 percent to 70 percent of the slot duration. Grab has also set up a direct feedback session with its drivers for June 26 to talk more about these changes. Interestingly, some drivers who commented on Ms. Yeo’s Facebook post had different ideas, calling for “higher base fares,” a “more transparent pricing system,” or even wanting Grab to “completely remove such incentive schemes” altogether.
