The general manager of Gojek Singapore, Lien Choong Luen, has urged authorities to reconsider the age requirement for private-hire drivers, aiming to increase the pool of drivers available to meet the surging demand for ride-hailing services. During an event celebrating Gojek’s fifth anniversary in Singapore on November 23, 2023, he stated, “We always need more supply,” questioning the current age limit of 30 years for new private-hire drivers.

This age requirement, implemented in September 2020, was designed to align the licensing standards for private-hire drivers with those of taxi drivers, following calls for a more equitable playing field. Before this change, there was no minimum age for private-hire drivers, and permanent residents were also eligible to obtain a vocational license, provided they had held a driving license for at least two years, allowing drivers as young as 20 to qualify.

At the time, demand for private-hire rides was about 30% lower than pre-pandemic levels, leading to stricter licensing measures to protect existing drivers’ earnings. However, as of September 2023, the demand for ride-hailing services has returned to pre-COVID-19 levels, with approximately 538,000 daily trips recorded. The sector has faced persistent challenges related to driver shortages, particularly during late-night hours when demand peaks.

In light of passenger complaints regarding high fares and extended waiting times, authorities are currently reviewing operational practices of taxi and ride-hailing companies, with a focus on ride availability. This review is expected to be completed by the second quarter of 2024.

In response to the driver shortage, Gojek has taken proactive measures, such as reducing its commission rate from 15% to 10% for drivers, which is set to last until at least the end of 2024. While the company views this as an investment to enhance driver earnings, a recent DBS Group Research report suggested that this reduction could lead to increased losses for Gojek and its parent company, GoTo.

During the anniversary event, Lien dismissed concerns that the commission reduction indicated Gojek’s diminishing position in Singapore’s ride-hailing market. He emphasized that the reduction reflects the company’s strong standing, stating, “It’s actually an investment in the market.”

While Lien refrained from commenting directly on rival Grab’s introduction of a dynamic commission structure for drivers, he emphasized that Gojek’s stable commission rate offers drivers greater earning certainty. He underscored the importance of competition in the ride-hailing industry, asserting that Gojek’s presence enhances choices for both drivers and passengers.

Looking ahead, Lien indicated that Gojek plans to continue investing in the Singapore market, although specific details were not provided. The company aims to enhance its pricing and ride allocation systems and has recently improved its routing system, resulting in a 10% reduction in pick-up distances.

Safety remains a priority for Gojek, with Lien noting that over 99.99% of rides this year have been accident-free, but he acknowledged that even the smallest percentage of incidents is still too many. “Prevention is always better than cure,” he stated, emphasizing the company’s commitment to improving safety for its drivers, who spend many hours on the road.