Grab pledges stable fares as drivers get earnings boost

 The tech firm says the Gig Consultative Council will continue its deliberations to determine the final rates under the initiative.

Earlier, Prime Minister Anwar Ibrahim said Putrajaya and Grab will jointly fund a RM160 million package to increase the net income of the company’s e-hailing and p-hailing workers from next year.

PETALING JAYA:

P-hailing and e-hailing service provider Grab has sought to assure consumers that its fares will remain “stable” even as it introduces an interim framework to boost the earnings of its drivers and riders.

In a statement, the tech firm said an agreement on a proposed minimum baseline rate for its partners had been reached in principle.

“With Grab taking the lead in advancing this initiative, the proposed adjustment is intended to increase partner take-home earnings from 2027 while ensuring that passenger fares remain stable while the framework is introduced.

“The Gig Consultative Council will continue its deliberations to determine the final rates,” it added.

In tabling the 2027 budget earlier, Prime Minister Anwar Ibrahim said Putrajaya and Grab would jointly fund a RM160 million package to increase the net income of the company’s e-hailing and p-hailing workers from next year.

The package includes increasing the minimum income for some 600,000 e-hailing and p-hailing workers, assistance with vehicle maintenance costs and Perkeso contributions.

Anwar, who is also the finance minister, said this would increase the net monthly income of e-hailing drivers and p-hailing riders by up to RM227 and RM100, respectively.

Grab said the government would also co-fund a subsidy for vehicle maintenance to reduce the operational costs of its partners by up to 35%.

“Grab will introduce an interim safety incentive to help reduce regulatory e-hailing insurance costs by up to 25% for driver-partners with good safety scores.

“By rewarding responsible driving, this initiative aims to ease financial pressures while recognising responsible driving behaviour and contributing to safer roads,” it said.

The company said it would cover 100% of Perkeso contributions for its “most active” e-hailing and p-hailing workers, while others will have subsidies of up to 50% for contributions.

It also said it would offer discounted rides to and from train stations, as part of encouraging public transport use and boosting first- and last-mile connectivity. - FMT