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Grab cuts fee for JustGrab taxi drivers for short trips, but raises commission for higher fares | TODAYonline

The adjustment in levies comes more than a month after ride-hailing firm Uber and taxi operator ComfortDelgro rolled out a similar service.

Under the UberFlash service, Uber takes a 10 per cent cut on bookings taken up by ComfortDelGro cabbies, less than the 20 per cent commission it levies on Uber drivers.

The tiered levy structure drew a lacklustre response from taxi drivers on the JustGrab platform. Most of them said that the reduced commission fees were not much of an incentive to pick up shorter trips.

Mr Ho Ze Kai, 35, an SMRT taxi driver said: “Of course, the 7 per cent reduction in levy for short trips is a bonus if there aren’t long trips available.”

However, Mr Ho said that taxi drivers are more concerned about picking up bookings near the Central Business District, as the fares are usually higher due to surge pricing.

Ha added: “It won’t really incentivise me to do shorter trips. I will still take jobs (that work) to my advantage. For example, in the evening when I’m driving in a residential area, I’ll only choose jobs that bring me to the city or somewhere near the city.”

Another driver, who declined to be named, said: “I will still drive back to town even if I have no passengers in my car to get a surge fare rather than take S$6 to S$8 dollar jobs in a neighbourhood estate.”

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TODAYonline | Grab cuts fee for JustGrab taxi drivers for short trips, but raises commission for higher fares.