Commuters and drivers will be able to tap Grab's GrabHitch service from 22 June 2020, but the ride-sharing service GrabShare, will remain suspended.
Two drivers who allegedly provided carpooling services during the circuit breaker period have had their vehicles seized.
Carpooling is now illegal after the Transport Ministry revoked a law allowing it to be carried out under some conditions.
Citing feedback from drivers, Grab said it would stop its GrabHitch service between 1:00am and 5:00am starting from next month.
In an email to drivers, Grab said that GrabHitch drivers will have to pay a 10% platform fee" for all their rides from Friday.
Uber has introduced Uber Commute - a new carpooling service, which allows motorists headed to work to pick up passengers for a fee to cover costs.
Grab has ceased its GrabHitch Inter-Country Service, which was deemed illegal by the Land Transport Authority soon after it was launched a year ago.
GrabHitch is one of several carpooling services to emerge after laws were passed in 2015 to allow drivers to be paid for offering rides within Singapore.
The impact of ride-hailing apps like Uber and Grab extend beyond the disruption of the taxi business, it also caused the rental car population to soar.
Grab currently has another carpooling service - GrabHitch - but it uses a separate group of drivers who ferry others on a not-for-profit basis.
A new car ride-sharing service offering trips between Singapore and Johor Bahru will now be operated as a three-week 'trial' without any money changing hands.
Ride-hailing app GrabTaxi, which competes with Uber in Southeast Asia, is planning to launch a carpooling service in Singapore.