Grab announced on Monday, November 17, that the minimum fare for most Grab ride types will increase by S$0.50 starting November 24. For JustGrab services, the minimum fare for drivers will rise from S$5.30 to S$5.80. This increase does not apply to GrabHitch, nine-seater, 13-seater, and hourly rental services.
Grab said the fare increase is meant to help drivers on short trips under three kilometres. On short trips, operational costs such as fuel and vehicle rental make up a larger share of the total fare. The company added that it will fully fund the increase, meaning there will be no impact on passenger prices.
The announcement came shortly after Grab officially recognised the National Taxi Association (NTA), the union representing taxi drivers on its platform. This makes Grab the first platform operator in Singapore to formally recognise all three Platform Work Associations, which also include the National Private Hire Vehicles Association (NPHVA) and the National Delivery Champions Association (NDCA).
Under these agreements, the three associations can legally negotiate on behalf of workers on matters such as fair earnings, welfare, and working conditions.
Raven Lee, executive secretary of the NPHVA, said the S$0.50 minimum fare increase is “a step forward and a welcome result” of the collaboration between Grab and the union. He added that the increase translates to “concrete earnings improvement for drivers” and up to a 9 per cent increase on the minimum fare.
Yeo Wan Ling, assistant secretary-general of the National Trades Union Congress (NTUC) and adviser to NDCA, NPHVA, and NTA, said: “Today’s signing marks a milestone, as all three associations representing platform workers are formally recognised by a single platform operator for the first time.” She added, “This strengthens our collective voice and allows us to work closely with Grab to address key challenges faced by our platform workers, including earnings, safety and working conditions.”
These developments follow a move by NTUC last week. On Friday, NTUC delegates voted to amend the union’s constitution for the first time since 2017. With over 90 per cent in favour, the amendment granted the three associations full affiliate status, giving them voting rights for the NTUC Central Committee and formally bringing platform workers into the leadership of the labour movement.
