Grab to cut Vietnam driver fees, pay compensation after review

HO CHI MINH CITY – Grab Holdings will reduce the fees it collects from drivers in Vietnam and pay about 3.9 billion dong (S$194,000) in compensation for past excessive deductions, following a review by the country’s competition watchdog.The company will cut the maximum combined platform and app usage fees it retains from drivers to 32%, down from as much as 40.6% for motorbike rides and 39.81% for car trips, the National Competition Commission said in a statement on Nov 5.The ride-hailing firm will also compensate drivers for deductions that exceeded 35% of their revenue share, covering about 0.13% of rides since 2024.The reimbursement starts Nov 5 with active drivers receiving payments directly into their Grab wallets, while former drivers will be asked to provide bank details to receive their share, the statement said. The changes follow complaints from drivers about declining fares and high operating costs, which have put pressure on their take-home earnings.In September, some Grab drivers called for a two-day boycott of the platform to protest what they described as excessive commissions that threatened their ability to earn a living wage.Alongside the refunds, Grab proposed a broader package of incentives estimated at about 2.95 trillion dong.From Nov 10, the company will reduce platform fees charged to passengers on selected short-distance trips.It also plans to allocate 860 billion dong for driver bonuses and operational cost support in the fourth quarter, including fuel and electric vehicle charging assistance.“These changes are intended to support driver-partner earnings opportunities, boost passenger demand and improve transparency,” Grab said in a statement responding to questions from Bloomberg News.“With different countries operating their own regulatory frameworks, we will continue to engage with governments to find ways to support driver-partners, keep rides accessible and maintain reliable services.”The company attributed the previous excessive deductions to fluctuations in supply and demand, or algorithm errors that caused fees to exceed the system’s prescribed limits, the commission statement said.The dispute underscores the growing importance of ride-hailing platforms in Vietnam’s urban transport market, where thousands of drivers depend on the services for a living.Vietnam has around 800,000 ride-hailing drivers, who earn on average about 9 million dong per month after expenses while working 8 to 13 hours a day, according to state media. BLOOMBERG