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Grab slashes salary of senior executives by 20% amid COVID-19 crisis

Grab slashes salary of senior executives by 20% amid COVID-19 crisis
Grab slashes salary of senior executives by 20% amid COVID-19 crisis

Grab Holdings, a ride-hailing company, has recently cut the senior management’s salary by around 20% as well as encouraged its staff members to take voluntary unpaid leave. The company also has informed that it might not be able to provide more financial assistance to the drivers if the precautionary circuit breaker measures to combat the spread of COVID-19 disease extend beyond 1st June in Singapore.

The technology company is the biggest private-hire & food delivery operator as well as a major e-payments player in Singapore. Andrew Chan, Grab’s head of transport, has stated that it has been hard hit by the pandemic. The company anticipated the ‘circuit breaker’ measures imposed to be lifted by the following week. However, the period has been extended until 1st June.

Mr. Chan acknowledged the drop in earnings of the private-hire drivers as the number of rides has plunged sharply. In order to help drivers during this economic crisis, the company will reduce the commission by nearly 50%. For instance, drivers who are renting their cars from the company will not be subject to paying any commission until 10th May.

From 11th May to 1st June, drivers who wish to receive waiver of full commission fees must complete over 10 parcels and foods delivery per week. Those who are unable to meet this criterion will be subject to a 5% commission fee. Additionally, Grab drivers will obtain a free rental service from the company for 2 days per week from 4th May till the end of the month. This policy will enable drivers to save at least 30% of their rental fees. A weekly payout of either $85 or $45 will be extended till the end of May to help supplement the income of drivers.

Funds were diverted from incentives for the best-performing drivers, compensation on cancellation, and other schemes. Voluntary donations are also obtained from employees, which were used to fund the financial assistance extension. However, it will create other job opportunities for drivers, such as grocery and parcel delivery.

Source credit:

https://www.straitstimes.com/singapore/transport/coronavirus-grab-slashes-senior-managers-pay-by-up-to-20-warns-drivers-that