Ryde Group Maintains 0% Commission for Driver-Partners, Announces Platform Fee Adjustments

Rhea-AI Summary

Ryde Group (NYSE American:RYDE) has announced platform fee adjustments while maintaining its 0% commission policy for driver-partners. Starting January 23, 2025, platform fees will be adjusted to $1.05 (GST exclusive) for fares $18 and below, and $1.25 (GST exclusive) for fares above $18.

The company continues its 7 Driver Commitments focusing on transparency and fair rewards, including a 1-Day Leave Scheme. Key strategic areas include enhancing rider safety, app upgrades, and operational improvements through AI and data analytics. The RydeGreen Program promotes EV adoption and eco-friendly practices, supporting Singapore's Green Plan 2030.

These changes are projected to potentially increase revenue by 15-20% for FY2025, with reinvestment planned for platform improvements and ecosystem development.

Positive

• Projected 15-20% revenue increase for FY2025
• Maintained 0% commission policy for drivers
• Implementation of platform fees to improve sustainability

Negative

• Increased platform fees for riders effective January 23, 2025

Insights

Financial Analyst

The platform fee adjustment signals a strategic shift in Ryde's monetization model. The new structure, increasing fees to $1.05 and $1.25 (ex-GST) based on fare thresholds, could generate an estimated 15-20% revenue boost in FY2025. This pricing strategy, combined with the maintained 0% commission policy, creates an interesting market positioning - potentially pressuring competitors while maintaining driver loyalty.

The $18 threshold is particularly noteworthy, as it suggests careful analysis of ride patterns and price elasticity. For a microcap company ($13.3M market cap), this revenue optimization could significantly impact profitability margins. The focus on platform maintenance and technological advancement indicates necessary reinvestment of increased revenues, though the small market cap raises questions about scalability and competitive sustainability.

The dual emphasis on zero commission and increased platform fees represents a calculated trade-off: maintaining driver satisfaction while enhancing revenue streams. This could prove important for survival in the competitive mobility market, especially given Ryde's relatively small market presence.

Market Research Analyst

The strategic timing of this fee adjustment, coupled with the sustainability initiatives, positions Ryde uniquely in Singapore's mobility market. The maintained 0% commission policy creates a compelling driver value proposition, potentially driving platform adoption and market share gains. The RydeGreen Program's alignment with Singapore's Green Plan 2030 demonstrates market foresight, particularly as environmental regulations tighten.

Key competitive differentiators include:

• Driver-centric policies (7 Driver Commitments, 1-Day Leave Scheme)
• Transparent fee structure
• Environmental focus through EV adoption incentives

The projected revenue increase suggests strong unit economics, though market penetration remains a challenge given the company's size. The platform's focus on AI and data analytics for demand prediction indicates a tech-forward approach that could yield operational efficiencies and improved service quality, important for competing against larger players.

SINGAPORE, SINGAPORE / ACCESSWIRE / January 13, 2025 / Ryde Group Ltd (NYSE American:RYDE) ("Ryde'' or the "Company"), a leading technology platform for mobility and quick commerce in Singapore, announces a significant step forward in delivering exceptional rider experiences while upholding its strong commitment to supporting driver-partners.

As part of its ongoing mission to empower driver-partners, Ryde continues to uphold its industry-leading 0% commission policy and 7 Driver Commitments, focused on transparency, fair rewards, and long-term support. The 0% commission policy is extended to all private-hire and taxi drivers on the platform.

Platform Fee Adjustments to Enhance Fairness and Sustainability

Effective January 23, 2025, Ryde will introduce updated platform fees designed to promote fairness, sustainability, and improved service quality, further strengthening its dedication to building a fairer platform for riders and driver-partners. Starting January 23, 2025, Ryde's platform fees (for both cash & cashless payments) will be adjusted as follows:

• For fares $18 and below: $1.05 (exclusive of GST)

• For fares above $18: $1.25 (exclusive of GST)

These updates reflect Ryde's commitment to balancing affordability with fairness while ensuring long-term sustainability.

Strategic Focus Areas

Ryde continues to focus on initiatives that enhance experiences for riders and driver-partners while building a sustainable and environmentally conscious business.

A) Enhancing Rider & Safety Experience

• Advanced Safety Features: Implementing more measures to ensure rider and driver-partner security.

• App Upgrades: Introducing intuitive features, faster response times, and a more user-friendly interface.

• Operational Enhancements: Streamlining processes to reduce wait-times and optimize ride matching.

• Technological Advancements: Leveraging proprietary AI and data analytics to improve match-rates and predict demand patterns.

• Platform Maintenance: Ensuring a seamless, reliable rider experience.

B) Empowering Driver-Partners

Ryde leads the industry in driver-partner support with initiatives including:

• 0% Commission Model: Ensuring driver-partners retain more of their earnings.

• 7 Driver Commitments: Promoting transparency, trust, and fairness.

• Fair Rewards and Benefits: Offering competitive earnings, transparent pricing, and additional incentives.

• 1-Day Leave Scheme: Enhancing driver well-being by providing rest days to maintain high levels of service and satisfaction.

C) Building a Sustainable Business

Ryde remains focused on balancing fair and transparent pricing with sustainable operations by:

• Maintaining affordable fares while ensuring driver-partners are fairly compensated.

• Strengthening ongoing innovations and operational improvements.

• Promoting eco-friendly practices, such as carpooling, to reduce carbon emissions.

D) Commitment to Environment: RydeGreen Program

As part of its sustainability mission, Ryde continues to drive impactful initiatives through the RydeGreen Program. The program is designed to promote the use of electric vehicles (EVs) among driver-partners, reduce carbon emissions, and support Singapore's Green Plan 2030. By encouraging EV adoption, carpooling, and other eco-friendly practices, Ryde is committed to building a greener, more sustainable mobility ecosystem.

Looking Ahead

Ryde estimates that these changes may potentially contribute to a 15-20% increase in revenue for the financial year 2025, which can be reinvested into improving the platform's operations, services, and ecosystem for the benefit of all stakeholders.

Ryde's growth is rooted in its vision of creating a community-centered, sustainable, and innovative ecosystem, ensuring the long-term sustainability of its platform while benefitting riders, driver-partners, and the wider community.

About Ryde Group Ltd

Ryde, a homegrown super mobility app founded in Singapore, is the world's FIRST on-demand carpooling app since 2014! As a publicly listed company on the NYSE, we are reimagining the way people and goods move around. We offer a full suite of services, including carpooling, private hire, taxi, and delivery, but what truly sets us apart is our commitment to empower our private-hire and taxi partners. We take 0% commission, ensuring that more of every hard-earned dollar goes to driver-partners on our platform. For more information, please visit https://rydesharing.com/ to learn more.

Contacts

For Media Relations:
Media Team
Ryde Group Ltd
Email: media@rydesharing.com

For Investor Relations:
Investor Relations Team
Ryde Group Ltd
Email: investor@rydesharing.com

FORWARD-LOOKING STATEMENTS

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors . Any forward-looking statements contained in this press release speak only as of the date hereof, and Ryde Group Ltd specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Safe Harbor Statement

This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement.

Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

Contact Information

Suraj Raj
Group Corporate Communications & Branding Manager
suraj@rydesharing.com
(65) 97775120

SOURCE: Ryde Group

View the original press release on accesswire.com

FAQ

What are the new platform fees for Ryde (RYDE) effective January 23, 2025?

Starting January 23, 2025, Ryde's platform fees will be $1.05 (excluding GST) for fares $18 and below, and $1.25 (excluding GST) for fares above $18.

How much revenue growth does Ryde (RYDE) project for FY2025?

Ryde projects a potential 15-20% increase in revenue for the financial year 2025.

What is Ryde's (RYDE) commission policy for drivers in 2025?

Ryde maintains a 0% commission policy for all private-hire and taxi drivers on the platform.

What is the RydeGreen Program announced by Ryde (RYDE)?

The RydeGreen Program is an initiative to promote electric vehicle adoption among driver-partners, reduce carbon emissions, and support Singapore's Green Plan 2030.

What driver benefits does Ryde (RYDE) offer in 2025?

Ryde offers drivers benefits including a 0% commission model, 7 Driver Commitments focusing on transparency and fair rewards, and a 1-Day Leave Scheme.