Grab announced today (May 25) that it will increase its driving rates by S $ 1 starting at 10 a.m. on June 1. The move is an attempt to improve drivers’ incomes, the ridesharing giant said.
The fare increase will apply to all of Grab’s transportation services except its standard taxi booking service, GrabHitch rideshare service and GrabCoach service, said the chief transportation officer of Grab. Grab Singapore, Andrew Chan, in message to drivers.
Grab said commissions will not be charged for the $ 1 base fare increase, June 1-30, 2021, to further support its driver-partners in these uncertain times.
It will also give back S $ 1 to users for rush hour trips from June 1 to 14, 2021, with the promotional code “STAYSAFE”.
This is the company’s first rate hike since 2017 and the second time Grab has adjusted the prices of its ridesharing offers after the competition watchdog, the Competition and Consumer Commission. Singapore, lifted restrictions on it in November last year.
As of April 22 of this year, Grab has increased the platform fees for GrabFood and GrabMart to S $ 0.30 per order. Previously, the fee was S $ 0.20.
Grab said the platform fee will be used to maintain current features and develop new ones. The fees will be used for investments in three areas – safety, security and efficiency.
Grab’s intention to go public
Grab announced on April 13 its intention to go public in the United States in partnership with Altimeter Growth Corp (Nasdaq: “AGC”).
It is expected to be the largest US equity offering ever by a Southeast Asian company. The merged company expects its securities to trade on the NASDAQ under the symbol “GRAB” in the coming months.
The value of the proposed transactions Grab at an initial pro-forma equity value of approximately $ 39.6 billion (S $ 53.16 billion) for a PIPE size of over $ 4.0 billion (5.37 billion S $) and will provide Grab with approximately $ 4.5 billion (S $ 6.04 billion) in cash.
Grab’s plans to list via the SPAC route come after merger talks with Indonesian rival Gojek failed.
Grab’s decision to become a state-owned company was driven by strong financial performance in 2020, despite COVID-19. At the same time, the company has made significant strides towards profitability, with a focus on building a resilient business and creating sustainable growth.
Featured Image Credit: Bloomberg
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