With its revenues taking a severe hit from the Covid-19 outbreak, Grab is encouraging its employees to go on voluntary no-pay leave.
The ride-hailing firm also warned on Wednesday (April 29) that it might no longer be able to provide its drivers with extra financial support if Singapore’s circuit breaker restrictions to slow the spread of the coronavirus extend beyond June 1.
In a letter to drivers — a copy of which was sent to the media — Grab Singapore head of transport Andrew Chan said the company’s business has been badly hit by the pandemic.
“No one can be sure how long the situation will last, but we are preparing for a long and difficult path ahead,” he wrote.
“As our revenues continue to fall, senior Grab leaders have taken a pay cut of up to 20 per cent, and Grab staff have also been encouraged to take no-pay leave voluntarily.”
When contacted, Grab declined to reveal the number of people it employs in Singapore and how many among them have volunteered to take no-pay leave.
Read also: Grab refutes claims it ‘quietly’ stopped popular food delivery subscription plan
In March last year, it said it had 1,500 staff members here and planned to double its headcount to 3,000 by the end of this year. They will be housed in its new one-north headquarters that was due to be ready by the fourth quarter of this year.
As a result, transport rides have continued to plunge by “double-digit percentages”, Mr Chan said. This has decimated the earnings of Grab’s drivers.
Grab declined to disclose the actual decline in ridership.
