Grab, the Southeast Asian ride-hailing giant, has started raising prices for its services again.
In an announcement earlier today, Grab mentioned that the company will be charging an additional SGD $1 for their ride-hailing services in Singapore.
- Grab has risen its prices by an additional SGD $1 for ride-hailing services in Singapore.
- The firm mentions that the move was aimed at "improving earnings for its drivers".
- 100% of the earnings from the price hike will go to drivers for the month of June.
- Grab did not mention any changes to prices in other countries they operate in.
Why It Matters
- While 100% of the additional earnings will go to drivers for the month of June, Grab's standard commission structure of 20% will kick in after.
- Grab has been on a heavy spending spree for the past few years, and this move could transition the company towards profitability in Singapore.
- Just last year, Grab also introduced an additional $0.30 "platform fee" for ride bookings.
- The additional $1 increment at scale could potentially boost Grab's top-line revenues by an additional 1% - 3%, assuming average rides cost between $7 - $20.