Fuel price spikes: Mobility platform responses

[SINGAPORE] Mobility and food delivery platforms are still monitoring the impact of fuel price spikes on its drivers and riders across South-east Asia, and are taking different approaches to help them.

Fuel prices have soared across South-east Asia in the wake of the Iran conflict, with countries such as the Philippines implementing measures, including a four-day work week, to mitigate the impact.

Indonesia-headquartered GoTo told The Business Times that it is monitoring oil prices amid global developments due to the importance of fuel costs to its ecosystem.

“Historically, we have been able to manage periods of volatility in energy prices, and our business has demonstrated resilience during downturns, as our services remain an essential part of daily life,” said a GoTo spokesperson.

Others like ComfortDelGro (CDG) are absorbing a portion of the fuel price increase for its drivers by working with the National Taxi Association. The company will also deploy targeted fuel subsidies as part of a broader commitment to driver welfare and operational stability during this volatile period.

“We are closely monitoring the impact of rising fuel costs driven by the ongoing geopolitical tensions and recognise the direct pressure this places on the livelihoods of our drivers,” said Michael Huang, head of Singapore point-to-point mobility business at CDG.

Food delivery platform foodpanda said that it has existing partnerships with petrol stations Esso, Shell and Caltex for 20 per cent discounts on fuel. This is coupled with discounts with a range of partners for equipment and other services to help keep overall costs more manageable for riders.

“In addition, we regularly review our fees and have increased fees for certain orders delivered by car to better reflect the higher operating costs associated with car deliveries,” said a foodpanda spokesperson.

Grab is providing immediate and interim relief for its drivers and riders across South-east Asia through incentives and rebates, said CEO Anthony Tan in a social media post. This is to cushion the impact on earnings in markets that lack price controls on fuel.

In Cambodia, Myanmar, the Philippines, Singapore and Vietnam, the platform has given out a mix of spot bonuses, incentive rebate and petrol vouchers.

“We are closely monitoring the situation in the other countries that have existing public fuel subsidies, and are developing contingency plans across the region should circumstances change,” said Tan.

Grab says that it is also in discussions with governments, petrol and electric-vehicle companies for more sustainable long-term efforts to protect driver and rider earnings.

“These macroeconomic pressures are a challenge that requires a unified response, and we are committed to leading the effort to support our community through the volatility,” said Tan.