SINGAPORE — From June 21 to the end of 2022 at least, ride-hailing firm Gojek will be cutting the commission it collects from its drivers by half, from 20 per cent to 10 per cent, so that they will no longer have to rely on incentives to earn more.

Announced on Monday (June 14), the move contrasts with Gojek’s main competitor, Grab, which is still collecting commissions of up to 20 per cent and recently announced a fare hike of S$1 to improve drivers’ earnings due to rising fuel and maintenance costs.

A Gojek representative confirmed with TODAY that fares for riders would remain unchanged despite the boost to drivers’ incomes.

In a blog post, Gojek said that the cut in commissions come with “no performance requirements” and will be available in the long term so as to give its drivers “greater assurance and stability”.

The move addresses the needs of its drivers — one in two of whom had given feedback that they want lower service fees in order to achieve better earnings — it added.

Other than cutting the commission, Gojek also announced that from June 21, it will introduce a payout of S$3 to drivers who drive 3km or more to pick up their passengers. This is a reward to drivers for their “extra efforts”, it said.

It will also reward its drivers with bonuses of up to S$100 daily for those who complete more trips during peak hours, adding that the maximum reward will be more achievable from Fridays to Sundays when demand is 30 per cent higher.

From July 1, Gojek will start a new “safety net” programme that will top up the difference for drivers who complete at least 400 trips a month but earn less than a minimum monthly earning from their gross trip fares.

In a press release, its general manager, Mr Lien Choong Luen, said that the changes are “concrete steps” aimed at easing some of the drivers’ worries that emerged due to the uncertainty presented by the Covid-19 pandemic.

The firm will particularly give drivers “more flexibility by reducing their dependence on incentives”, he said. The current incentive schemes will be phased out.

Gojek added that as the changes are designed to help its drivers build a “sustainable livelihood” on its platform, riders will also benefit when its driver pool grows, owing to greater ride availability and improved wait time.

Ultimately, the changes reflect the firm’s “significant investment” in Singapore, Gojek said, and its goal to boost its business here.

The firm gave an update as well on its campaign to provide free or discounted rides to and from vaccination sites for all riders in Singapore, which was launched on May 27.

The campaign had drawn “tremendous” response, with 117,500 rides completed to date, it said.

Under the campaign, every Gojek user automatically receives a pair of ride vouchers worth S$15 each, which can be used for pick-up and drop-off at their chosen vaccination centre, polyclinic or clinic.