The Influence of Compensation and Motivation on the Performance of Grab Online Transportation Drivers in Palembang City

Florensia, Erika
Mulyawati, Cindy
Hendrata, Florence
Martin, Alnov

Madani: Multidisciplinary Scientific Journal
Vol 3, No 12 (2026): January

This study aims to analyze the influence of compensation and service quality on the performance of Grab online transportation drivers in Palembang City. The increasingly intense competition in the online transportation industry requires companies to pay attention to driver welfare while maintaining service quality to ensure optimal performance. This research uses a quantitative approach with a survey method by distributing questionnaires to Grab drivers in Palembang City. The independent variables tested are compensation and service quality, while the dependent variable is driver performance. Data analysis is conducted using multiple linear regression. The results of this study are expected to show that adequate compensation and good service quality have a positive and significant effect on improving driver performance. This study provides practical implications for Grab management in formulating compensation strategies and improving service quality to support customer satisfaction and sustainable driver performance.