RIDE-HAILING startup Gojek announced it will be lowering the driver commission rate from 15 per cent to 10 per cent on Nov 1.

The company said it is committed to the cut at least till the end of 2024, and that it is part of efforts to help drivers defray increasing costs. The move is also a bid to increase driver supply, and improve the ride-hailing experience for customers. (*see amendment note)

“This is in line with the company’s commitment to support drivers and ensure they can build a sustainable livelihood on the Gojek platform.”

The cut in driver commissions brings Gojek in line with rival Ryde, which charges the same 10 per cent driver commission rate. Grab continues to charge the highest rate at 20.18 per cent, with the 0.18 per cent goods and services tax passed on to drivers.

Tada currently does not charge a driver commission rate but charges a tiered platform fee, with drivers paying S$0.59 for rides costing between S$7.10 and S$18, and S$0.81 for rides costing S$18.10 and above.

Gojek is also introducing, alongside the cut, a payment transaction fee for any non-cash payments. It is something that is “not new in the Singapore market”, said the company. This is a tiered fee ranging from S$0.10 to S$0.60 based on the distance travelled.

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Only Tada has a similar payment transaction fee, charging between 1.8 per cent and 3.3 per cent, including a separate S$0.24 per transaction based on the cashless payment method.

These moves come on the back of record certificate of entitlement prices and high fuel prices. Fuel prices in Singapore have only started to fall on Oct 16 after a continuous rise over five weeks, with 95-octane now at S$2.90 per litre.

*Amendment note: The article previously stated that the cut in driver commission rate would last till at least the end of 2023 instead of 2024.