Jakarta, CNBC Indonesia – Gojek driver commissions are down. But unfortunately this does not apply in Indonesia, but only in Indonesia’s neighboring country, Singapore.

Starting November 1 until at least the end of 2024, ride-hailing company Gojek, will reduce service fees (commission) from 15 percent to 10 percent for each trip.

This step aims to overcome the driver crisis which makes online taxi service rates expensive and passenger waiting times longer.

Gojek cited rising demand for ride-hailing services and higher operating costs for drivers as reasons for reducing commission rates, or service fees.

“Reducing service fees will help increase the income drivers take home while ensuring Gojek services remain reliable and accessible to consumers,” said a Gojek Singapore spokesperson, quoted from the Straits Times, Monday (23/10/2023).

The cut in commission quoted from drivers makes Gojek’s service costs equivalent to rival Ryde, both at 10 percent. On the other hand, Grab continues to charge the highest rate of 20.18 percent, with goods and services tax of 0.18 percent charged to drivers.

Gojek also announced that starting November 1, there will be an additional transaction fee of between 10 cents and 60 cents for passengers who use non-cash payment methods for their rides. This is the first time Gojek has implemented such a large fee.

The company calls this a burden that users have to pay, which is something new. And said that the amount charged would be tiered based on the distance traveled.

“This will not impact your overall bottom line,” the company told its drivers in a blog post.

Gojek said the fee will be reflected in customer receipts as a component of its new “payment transaction fee.” To help offset these costs and increase ridership, the company will offer a new promo code for 15 percent off Gojek rides, capped at $5, starting November 1.

Another change that will begin in November is a revised incentive scheme for drivers that will now take into account their trip acceptance rate, which must be at least 60 percent.

Before the Covid-19 pandemic hit in early 2020, Gojek used to take a 20 percent cut from its drivers.

This number was halved to 10 percent in June 2021, a move the company said was intended to increase drivers’ earnings at a time when the ride-hailing sector was being hit by the coronavirus.

[Gambas:Video CNBC]

(dem)