Hundreds of tuk tuk drivers in Phnom Penh took to Koh Pich on Friday, voicing growing frustration with ride hailing platform Grab. Their message was clear. Rising fuel costs are eating into already thin margins, and drivers say the current fare structure is no longer sustainable. The protest reflects mounting pressure on gig economy workers who rely heavily on daily earnings to cover fuel and basic living expenses.
Why Drivers Are Demanding Change?
At the center of the protest is a call for higher fares and reduced commission fees. Drivers say recent increases in LPG prices have made it difficult to earn a reasonable income. One representative of the group explained the situation bluntly.
“We are asking the company to increase fares per trip because LPG costs have gone up significantly,” he said.
Drivers are proposing a base fare of 1,200 riel per kilometer, higher than current rates. They are also pushing for commission fees to be reduced to between 12 and 15 percent. According to the same driver, many are now struggling just to break even.
“We face so much struggle currently, as the income that we earn is only sufficient for the price of fuel and LPG,” he said.
Grab Responds with Existing Measures
Grab Cambodia has responded by stating that several of the drivers’ requests have already been addressed. The company’s Public Affairs and Policy Manager, Kan Chhunnat, explained that fares currently range from 950 to 3,500 riel per kilometer depending on factors such as time of day and weather conditions.
He also pointed to new incentives introduced on March 10. These include replacing a fixed 300 riel per trip bonus with a cashback system. Under this scheme, drivers receive five percent of their daily earnings if they complete fewer than 19 rides, and 10 percent if they complete more than 20 rides.
In addition, the company is offering weekly fuel support in the form of LPG and gasoline vouchers valued between 5 and 15 US dollars for around 2,000 high performing drivers. Other support measures include distributing drinks during periods of extreme heat.
Fuel Prices Driving the Crisis
The broader issue goes beyond company policies. Global fuel prices have been rising due to geopolitical tensions, including the recent US Israeli strike on Iran, which has disrupted supply routes. Cambodia is feeling the impact directly.
In Phnom Penh, long lines of tuk tuks have become a common sight at LPG stations, especially those offering lower prices. Limited supply points and increasing demand have intensified the strain on drivers.
As of this week, LPG prices are hovering around 3,900 riel per liter at Kampuchea Tela Oil and Gas Company. For drivers who depend on fuel daily, even small price increases significantly affect their income.
What This Means for Cambodia’s Ride Hailing Economy?
This protest highlights a deeper tension within Cambodia’s fast growing ride hailing sector. Platforms like Grab offer convenience and flexible income opportunities, but drivers remain vulnerable to external shocks such as fuel price volatility.
If costs continue to rise without adjustments in fares or commissions, more drivers may be pushed to the brink, potentially affecting service availability and quality for users. The situation calls for a balanced approach where both platforms and drivers can sustain their operations.
Conclusion
The protest by hundreds of tuk tuk drivers in Phnom Penh is a clear signal that rising fuel costs are reshaping the economics of ride hailing in Cambodia. While Grab has introduced incentives and support measures, many drivers feel these steps are not enough to offset the growing financial pressure. Moving forward, meaningful dialogue and practical adjustments will be essential to ensure a fair and sustainable system for both drivers and platforms in an increasingly challenging environment.