Grab, Gojek, Tada, and Ryde - these ride-hailing platforms have become a fixture in our daily lives, offering a convenient and often cheaper alternative to traditional taxis. But for a number of Singaporeans, especially those who are part of the #hustle group, these platforms represent an income opportunity. The allure is undeniable: the freedom of having a car, the chance to be your own boss, and the flexibility to set your own hours. For young adults seeking to own a car or those looking to supplement their income, becoming a Private Hire Vehicle (PHV) driver can seem like a dream come true. But, how much can you really earn as a Grab/Gojek driver in Singapore? We interviewed J, a 29-year-old private hire driver to find out.

How Much Does A Grab/Gojek Driver Earn In Singapore

J has been a Grab driver for the past six years. He hits the road every day, clocking in around 50 hours a week for the company. While Grab might not offer the highest payouts, it consistently provides him with enough rides to fill his schedule, which is his top priority. On average, J brings home S$200 on weekdays and S$500 on weekends before his vehicle expenses. After factoring in his monthly car expenses of S$1,200, his earnings is roughly S$6,800 per month - not too shabby. In fact, his income is higher than the median salary of S$5,197 in Singapore and much higher than the median salary (S$4,680) of his age group of 25-29 years olds.

How Do Grab/Gojek Pay Their Drivers

Now, let’s take a look at how ride-hailing platforms pay their drivers. They typically take a percentage of the fare as a commission, while the drivers get to keep the remainder. For example, if the fare is S$10 and Grab’s commission rate is 20.18%, the driver would earn S$7.82. A lower commission rate of 10% offered by Gojek would mean the driver keeps a bigger share, earning S$9 for the same ride. Meanwhile, the fare itself depends on a combination of factors:

1. Distance

The farther you travel, the more you earn. This makes sense - a trip from Changi Airport to Woodlands will definitely pay more than a quick circle around the neighbourhood.

2. Surge Pricing

Peak hours or bad weather got everyone scrambling for a ride? Fares go up during these times, which means your earnings get a boost too! Since there’s no need to be exclusive to a company, many drivers also leverage multiple ride-hailing apps on their phones, allowing them to switch between the platforms to find the best fares at different times.

3. Time

Or, stuck in rush hour traffic? Don’t fret, the metre’s ticking slowly, but surely. You still get compensated for your time spent driving, even if it’s bumper-to-bumper.

4. Type of Car

The type of car you use for ride-hailing can also influence your earnings. Both platforms offer different car categories with varying passenger capacities and potential fares.

Opting for a larger car like a Multi-Purpose Vehicle (MPV) can open you up to the GrabFamily/GoCar XL category, which offers potentially higher fares due to its ability to accommodate more passengers. This can be especially lucrative for rides with families or groups.

The flip side is that MPVs typically have higher fuel consumption compared to sedans. You’ll also need to factor in the time taken to install and remove the car seat if you want to cater to passengers with young children. This means less time on the road.

5. Grab & Gojek Extra Incentives

Lastly, keep an eye out for bonuses and promotions offered by the platforms. These can be things like guaranteed minimum earnings for a certain number of rides or extra cash for completing rides in specific areas. Unfortunately, good things don’t come easy and there’s usually a catch with these incentives. The platform might require you to maintain a high rating or complete a certain number of rides within a specific timeframe. For instance, Gojek offers monthly loyalty rewards for drivers to earn up to 35% monthly service fee rebates. However, you must complete a minimum of 500 trips each month and maintain a performance rating of at least 80%.

Other Factors To Consider When Driving Grab/Gojek In Singapore

Though the earnings of a Grab/Gojek driver are pretty sweet, here’s a reality check on some of the not-so-glamorous aspects of being a PHV driver. Whether you own or rent your car, be prepared to fork out for fuel, maintenance, and insurance costs which will eat into your profits. Platforms will take a cut of your earnings as well. In the later half of 2024, drivers below 30 years old are also expected to contribute to their Central Provident Fund (CPF), which means lesser take-home pay. However, it isn’t necessarily a bad thing for those who have housing obligations or plans to buy a house as they can use their Ordinary Account contributions to pay for their housing loans. Last but not least, the grind never stops. Unlike a traditional office job, there’s no guaranteed “off” time as a Grab/Gojek driver. You set your own hours, but that also means you’re responsible for earning your own keep. Want more passengers? Be prepared to work on weekends to maximise your income.

Grab/Gojek Drivers - To Be Or Not To Be?

Being a PHV driver can be a great way to supplement your income or even become your main source of income. But, it’s not all sunshine and rainbows. Long hours, traffic jams, and bad passengers are all part of the ride.

So, after finding out how much a Grab/Gojek driver earns in Singapore, is driving a PHV worth it?

Our take is that being a PHV driver is only great for certain groups of people: Those who really value flexibility and need a car. Older individuals who don’t mind earning a stagnated wage. Those with spare time and know how to optimise their Grab/Gojek earnings. Individuals who don’t mind spending long hours on the road to earn a side income.

For full-time PHV drivers, it’s important to consider alternative income streams. For instance, can you combine ride-hailing with other freelance gigs in Singapore to create a more stable income? Younger drivers should also set some long-term goals to build a stronger financial foundation. While Grab/Gojek’s earnings might be attractive in the beginning compared to an office job, your career progression is almost nil. Your income primarily relies on the number of hours you drive, which can be physically demanding and has its own limitations. Ultimately, the road ahead is yours to navigate.