Grab says 25% commission not applicable to all drivers
GRAB

The revised commission rate has a tiered rate and variable incentives, according to the rm

By D KANYAKUMARI / Pic By MUHD AMIN NAHARUL

The 25% commission rate for drivers of the ride-sharing platform Grab is not applicable to all.

Grab Malaysia country head Sean Goh told The Malaysian Reserve (TMR) that the revised commission rate has a tiered rate and variable incentives based on the preferred driving plan chosen by the driver.

The drivers can opt to stay in their current programme or choose a different programme on a weekly basis. This is applicable for both current and new drivers.

“This would mean that a driver who has opted for a 25% commission rate may decide to opt in for the 20% commission rate whenever they want to.

This gives them full reign to decide their driving and incentive plan for the week,” said Goh, adding that the drivers will be reminded on a weekly basis to opt in or out.

“The new change was designed to reward the drivers who are hardworking and committed. This revision offers them the flexibility to enjoy a lowered commission rate, improved incentives, as well as additional benefits,” he said.

Goh added that the revision allows the drivers more transparency as they are able to track their performance metrics (acceptance rates of bookings and driver ratings based on passenger feedback) immediately and this will correlate with the requirements for their incentives.

“This will allow the drivers to track their earnings on a daily basis, as opposed to waiting for their weekly earnings statement,” he said.

Responding to claims that the South-East Asia ride-hailing service increased its commission rate from 10% in July 2014, Goh said Grab has always maintained its commission rate at 20%.

“We have never hidden this news from the media or our drivers. We have always been upfront on this matter,” he concluded.

Grab drivers who spoke to TMR, however, said the 25% rate was only applicable to new registrants or drivers alternating between Grab and other e-hailing platforms. These drivers will see a 5% reduction in their income.

Drivers under the ride-sharing company’s ambassador or loyalty programme are excluded from the new fee rate.

Grab currently has a total number of 1.8 million drivers across seven countries in South-East Asia.