Singapore has seen a strong economic rebound for drivers in ride-hailing, fueled by both a full-scale return to the office restoring daily commuter demand and nearly 16 million tourist arrivals this year. The strength of this demand is evident, with reports of Chinese tourists being undeterred by high costs, such as S$18 for a 10-minute taxi ride.
Yet, on the other hand, many drivers are struggling, caught in a deepening “platform squeeze.” For years, this has meant their earnings stagnate against rising cost of living and operational costs, like increased COEs and fuel, all while dominant high-commission models allow platforms to capture the lion’s share of the value.
The Market Reality Behind Salary Deficit
Ride-hailing is a big business in Southeast Asia, as Singapore alone witnessed 583,000 ride-hail trips per day in September, marking almost 9% growth since January.
Yet, despite the rising demand, drivers face a growing “platform squeeze.” While ride-hailing platforms continue to raise fares for riders to boost revenue, a large portion of that revenue is absorbed as platform commission, fees, or operational costs. Drivers often see little of the increased fares reflected in their take-home income.
At the same time, rising costs for vehicle maintenance, fuel, and regulatory obligations put further pressure on their earnings. The result is a situation where drivers must work longer hours just to maintain their income. This challenge is intensified by sector developments like mergers between platforms to achieve a monopoly situation, which is ongoing in Southeast Asia.
A core issue is the algorithmic “black box”, where the rules that dictate a driver’s earnings are constantly shifting. In fact, high-commission platforms can charge consumers high prices by factoring in their ‘willingness to pay’ but fail to increase the driver’s income.
In any HR context, motivation and engagement rely on fairness and clarity. A system built on arbitrary compensation is self-destructive as it cannibalises the motivation and stability of its people. This imbalance results in dominant platforms squeezing both the drivers and riders in different directions. The entire business suffers a sustainability deficit that guarantees long-term financial and operational instability.
Ethical Profit & Fair Earnings
The mobility industry must prove that profitability is not dependent on extracting value from workers. TADA’s business model is proof that the profitability of a ride-hailing platform can be built on a zero-commission model where drivers can enjoy greater earnings while the business achieves margins between 30% and 45%.
For context, dominant players charge an additional 5% to 10% software or operational fees on top of their high commission. Whereas ethical models can charge as low as a 60-cent fixed software fee per transaction. This small fee shouldn’t be kept as profit but to be reinvested for drivers and consumers, allowing the platform to be profitable while maintaining cheaper fares. This approach serves as a “Speed Breaker” against the platform squeezing from big giant platforms, allowing drivers to enjoy higher income.
To accommodate Singapore’s mandatory CPF contributions, platforms can also absorb the full Platform Operator share of 3.5% for eligible drivers, ensuring driver take-home pay remains unaffected and fares do not rise unfairly. This is viewed as a necessary investment in creating a fairer and more sustainable ecosystem, recognising drivers as skilled professionals deserving of social protections.
Fostering Relationships Beyond Transactions
Besides financial fairness, platforms must address isolation and the lack of belonging. Non-financial strategies are essential for fostering loyalty in a decentralised workforce. Regardless of industry, workers value personal relationships and genuine listening.
For the ride-hailing sector, this can be achieved by holding regular, informal feedback sessions and communal events which ensures worker voices directly shape the platform’s evolution. To build connections that extend beyond transactional relationships, communal activities should resonate with drivers through local flavours, like sharing their feedback over “durian” or “kopi” (Singaporean coffee), where employees can share their local favourites. Other examples include joint participation through international charities like the Red Cross for shared bonding activities.
Singapore’s Platform Workers Act is a significant first step, but further protections are needed to professionalise the on-the-ground ride-hailing workforce globally. This involves ensuring maximum take-home income and developing initiatives that provide non-monetary recognition and stability, treating drivers as valued professionals.
Looking ahead, ride-hailing platforms must commit to ensuring that drivers transition from contingent workers to participatory stakeholders. As the conversation around worker rights matures, the future belongs to platforms that recognise that a stable, committed workforce is their most valuable and sustainable asset.
About the author
Kay Woo is the founder and Group CEO of MVLLABS (MVL), the company behind the TADA zero-commission ride-hailing app and the ONiON electric vehicle (EV) and energy ecosystem. Guided by a people-first vision, Kay’s mission is to create a fairer, more sustainable mobility system by bridging blockchain technology with real-world mobility services. Prior to MVL, he founded easi6, a regional mobility platform, giving him deep expertise in Asia’s mobility challenges. He holds an M.S. in Statistics from Columbia University and a B.S. in Electrical Engineering from Seoul National University.
