SINGAPORE, Dec 24 — Starting in 2025, passengers using ride-hailing services such as Gojek, Tada, and ComfortDelGro’s CDG Zig will face higher trip costs as the three platforms increase their fees.

As reported by The Straits Times (ST), the fee hike is intended to cover costs associated with the upcoming Platform Workers Act.

Gojek, the second-largest ride-hailing service in Singapore, will increase its platform fee by 30 to 50 cents per trip beginning January 1, 2025. This will raise the fee from the current range of 60 cents to S$1 per trip. As announced on its website, the company also stated that the new fee will range from 90 cents to S$1.50 per trip.

ComfortDelGro, Singapore’s largest taxi operator, will also raise its platform fee by 30 to 50 cents, from the current flat rate of 70 cents to a range of S$1 to S$1.20, depending on the distance travelled and travel time.

Tada also informed its customers via email today that it will increase its fee by 50 cents, excluding goods and services tax. As a result, the fee will rise from the current range of 55 to 75 cents to a new range of S$1.05 to S$1.25, starting January 1, 2025, before GST.

Both Gojek and Tada also announced that they will continue to charge a "driver fee” beyond 2024.

Gojek stated in an email to customers that its current fee of $0.50 for trips under 10 km and $0.80 for trips over 10km will remain in effect until March 31, 2025.

Meanwhile, Tada’s driver fee, which ranges from 50 to 80 cents, will be in place until June 30, 2025, and will be fully credited to drivers to help cover their operating expenses.

The operators have cited the upcoming Platform Workers Act, which was passed by Parliament in September and will take effect in January 2025, as the reason for the increase in platform fees.

The new law, as reported by ST, aims to provide enhanced labour protections for private-hire car drivers, taxi drivers, and delivery workers who depend on these online platforms for their livelihoods.

In a notice posted on its website on December 20, Gojek explained that the fee increase is designed to "protect (drivers’) earnings” in line with the new law.

The company also stated that the fee, which is automatically added to customers’ bookings, will be used to fund initiatives aimed at improving and maintaining Gojek’s ride-hailing services for all users.

Gojek explained that its platform fee is determined by factors such as distance travelled and trip duration, ensuring that prices remain fair and competitive for both passengers and drivers.

Tada, on the other hand, stated that the fee adjustment is necessary to sustain current app features, introduce new improvements to enhance the ride-hailing experience, and support the implementation of the Platform Workers Act.

Additionally, Tada announced that it will offer comprehensive insurance coverage to its drivers and make contributions to the Central Provident Fund (CPF) for eligible drivers.

"These measures provide greater financial security for our driver-partners and demonstrate our commitment to being a responsible and progressive platform operator,” Tada was quoted as saying.

Acknowledging the crucial role that platform workers play in Singapore’s economy, Tada emphasised its commitment to supporting their livelihoods as they navigate the changes brought about by the new Platform Workers Act.

Tommy Tan, CEO of ComfortDelGro Taxi, told ST that the adjustment in CDG Zig’s platform fee will help fund enhanced protection and welfare initiatives outlined in the new legislation.

Under the new Platform Workers Act, platform companies will be required to contribute more to the CPF accounts of younger workers. Starting in 2025, platform operators will contribute 3.5 percent of a worker’s net earnings, with the rate gradually increasing to match the contributions made by employers outside the ride-hailing and delivery sectors by 2029.

These higher CPF contributions will apply to platform workers born on or after January 1, 1995, while older workers can choose to opt in.

The law also mandates that all platform operators provide work injury compensation insurance to platform workers, offering the same coverage as employees.

The Ministry of Manpower stated on December 17 that over 8,000 platform workers have opted for higher CPF contributions under the new law since November 1.