In a recent development, ride-hailing giant Gojek has announced a significant change in its payment structure for Singapore commuters.
Starting from November 1, Gojek will charge a transaction fee to passengers who do not use cash as their payment method, according to Channel NewsAsia.
An Introduction to Gojek’s New Transaction Fee
Gojek, a well-known name in the ride-hailing industry, has introduced a new payment structure for its services in Singapore.
This development comes as a response to the evolving payment landscape and the increasing trend of cashless transactions. The company considers this adjustment “a structure that is not new in the Singapore market.”
The new fee will range from S$0.10 to S$0.60, depending on the distance traveled by passengers. This fee will be reflected in customer receipts as a separate component labeled “Payment Transaction Fee.” It aims to streamline and differentiate the cost for passengers using cashless payment methods.
Prior to this change, Gojek’s fee structure included a driver fee and a platform fee in addition to the overall trip fare. However, with this new adjustment, a transaction fee will also be added for those who choose not to pay in cash.
Competition in the Market
Gojek is not the only player in the ride-hailing market in Singapore that imposes a transaction fee for cashless payments.
Competitors like TADA and ComfortDelGro also have their own fee structures. TADA’s rate varies depending on the type of card used, while ComfortDelGro charges a 10 percent administrative fee on top of the total metered fare.
To balance this change and maintain a healthy ecosystem, Gojek has decided to reduce the commission it collects from its drivers.
Starting from November 1, the fees will be lowered from 15 percent to 10 percent, a measure that will be in effect “until at least the end of 2024.”
According to Gojek, this reduction in the service fee is designed to bolster drivers’ earnings while keeping the company’s services accessible and reliable for consumers.
This move aligns with Gojek’s commitment to support its drivers and ensure that they can maintain a sustainable livelihood on the Gojek platform.
A Step Towards Better Service
Gojek has emphasized that this change is also in line with its ongoing efforts to improve the ride-hailing experience for customers.
By reducing the service fee and introducing the transaction fee, Gojek aims to increase the availability of drivers throughout the day, ultimately leading to a more seamless and efficient service for passengers.
To provide some context, Gojek had raised its service fees to 15 percent in February amid Singapore’s pandemic recovery.
In comparison, other competitors in the market, such as Grab and Ryde, have their own commission structures. Grab typically takes about 20 percent in commission from its drivers, while Ryde’s commission is set at 10 percent. TADA, on the other hand, doesn’t take any commissions.