Gov’t reviewing ride-hailing platforms’ 20% commission cap, APAD doing an in-depth study – transport ministry

The transport ministry says the government is reviewing the commission cap for ride-hailing platforms following calls by drivers to reduce Grab’s 20% commission rate. It said the the land public transport agency (APAD) is set to study the cap in depth, and a review would be made after engagement sessions with stakeholders and studies related to the matter.

While acknowledging drivers’ concerns about lowering the commission rate to increase their income more transparently and fairly, it said in a written parliamentary reply that Grab’s introduction of a proposed new fare structure under a proof of concept (POC) system known as the Grab Service Fee (GSF) had yielded some improvements.

The structure uses flexible commission rates for daily trips but maintains a 20% cap for the weekly or monthly average, taking into account distance, location, travel time and the real-time movement from a passenger’s drop-off point to a new pick-up location, the Malay Mail reports.

It reported that of May 31, 2026, about 170,944 driver-partners had opted into the new structure. The ministry said the POC trials had recorded an average GSF of 18% and an effective GSF of 15% since it was introduced. It added that the transit-per-minute income of driver-partners who joined the new structure recorded a continuous increase of over 6% since the POC began,

The ministry said this in response to a question from Tebrau MP Jimmy Puah Wee Tse, who had asked the ministry about the government’s efforts to discuss and urge ride-hailing platform Grab to lower its 20% commission rate for e-hailing drivers to ensure greater fairness and increase their income.

The ministry indicated that Grab had been updating the status and development of the POC to the ministry and APAD regularly. It added that the final review on the commission cap will also take into account the findings of ongoing studies being carried out by it and the human resources ministry regarding gig worker compensation, with these expected to be completed by the end of this year.

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