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Desperately retaining drivers with incentives, ride-hailing apps are struggling?

Recently, a series of car companies with popular ride-hailing apps are offering many incentive programs to attract drivers as well as retain their workforce.

Call for a longer ride, whether during peak or off-peak hours; sometimes the driver can’t even be found…, that’s the reflection of some people in recent times.

According to the explanation of car manufacturers, hundreds and even thousands of drivers have switched to other jobs in the past 2 years, along with the increasing travel demand of people after the COVID-19 epidemic, which is the cause of This situation.

Ride-hailing app Gojek currently has more than 200,000 driver partners across the country. Although the number of registered drivers is still growing at a double-digit rate, they also admit that it is difficult for passengers to call a car at some times, due to the sudden spike in demand after COVID-19.

To maintain a stable workforce, the application must strengthen support policies, especially when input costs are on the rise.

During this period, many car manufacturers accept to pay their own money, sacrificing profits to support drivers.

“Mainly support in terms of sharing ratio, support in terms of exploiting more customers for drivers. In the past period, businesses have also tried to exploit customers to increase revenue, partly supporting them. That’s the cost for the drivers,” shared Mr. Duong Tri Thanh, Deputy General Director of G7 Taxi.

“The executive board will have to reduce their income to compensate for the driver’s loss. The second is to consider supporting rent for workers in the province,” said Mr. Nguyen Cong Hung, chairman of the Hanoi Taxi Association.

In order to balance cash flow, in the long run, both traditional and technology car companies say they may increase fares to ensure income for drivers.

According to the Hanoi Department of Transport, by mid-March, 12 out of 15 taxi businesses in the area had re-registered fares. In which, 6 enterprises increased prices from 5 to 12%. As for ride-hailing applications such as Grab, Gojek and Be, have also increased the price of both 2-wheel and 4-wheel car services.