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NTA Releases Recommendations On Private Hire Vehicle Services To Transport Ministry

The National Taxi Association submits its recommendations to the Transport Ministry to ensure a level playing field between taxis and private hire vehicle services
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16 Nov 2015
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By Ryan Chan and Fawwaz Baktee

The National Taxi Association (NTA) released on 16 November 2015 its recommendations to the Ministry of Transport on private hire vehicle services as part of its efforts to ensure a more level playing field between various stakeholders.

These recommendations come after Transport Minister Khaw Boon Wan’s pledge on 2 October 2015 to review private car-sharing apps in consultation with taxi drivers and the general public to “forge a fair solution”. This task has since been undertaken by Senior Minister of State (SMS) for Transport Ng Chee Meng.

In its recommendations, NTA said that any review pertaining to private hire services should adhere to three key principles: assurance of commuters’ safety and security; fair competition among service providers who offer point-to-point transfers; and to embrace new technology for greater efficiency on the use of transport assets.

In a media statement, NTUC Assistant Secretary-General and NTA Executive Advisor Ang Hin Kee said: “The feedback and recommendations balance the need to level the playing field for the various stakeholders in the industry, and at the same time safeguard the interests of our end users.”

Here are the recommendations:

  • Commuters’ Safety and Security

Recommendation 1: All private hire vehicle drivers who provide point-to-point transfer services and serve the same consumer market should be subject to similar qualifications and certifications as taxi drivers.

Currently, all taxi drivers have to pass strict checks such as medical and criminal background screenings by the Land Transport Authority and the Singapore Traffic Police before being allowed to go through the Taxi Driving Vocational License (TDVL) course.

Recommendation 2: Private hire vehicles and drivers serving the same consumer market should adopt similar identification protocol as taxi vehicles and drivers.

Every taxi vehicle is clearly marked to ensure easy identification for commuters and enforcement purposes. Taxi drivers are also required to possess a photo identification issued by LTA, to assure commuters that the driver holds a valid TDVL and for easy identification.

Recommendation 3: Ensure that there is clear accountability when dealing with unfortunate incidents, disputes and claims.

For taxis, commuters who are involved in unfortunate incidents or disputes are able to approach LTA or taxi operators directly for assistance or liability claims. For private hire vehicles, it is currently unclear as to whom commuters are able to approach in such circumstances.

  • Need for Fair Competition

Recommendation 1: Ministry of Transport to review the standards imposed on taxi drivers and the operating cost, fee and rate structures with a view of levelling the playing field between taxis and private hires.

The NTA said that this is needed as the “plethora of compliance costs” translate into higher rental cost for taxi drivers and charges for commuters.

Recommendation 2: Charges and fees of private hire vehicles should be reviewed to allow fairer competition for taxi drivers and for commuters to have access to clear and transparent fee structures.

Currently, taxi operators adhere to fixed rates of charges approved by the LTA while private hires are able to change their pricing according to demand and supply.

Recommendation 3: To ensure relevance, LTA needs to recognise and embrace the effectiveness of new tools and technology to determine availability standards without the need for statutory requirements.

Statutory requirements, such as the Taxi Availability (TA) standards, have been put in place to meet the availability and quality of service standards. This, according to NTA, has resulted in higher operating costs for taxi drivers.

Recommendation 4: LTA to be consistent in regulating and monitoring private hire vehicle services that serve the same consumer market as taxi operators.

Laws were passed in August 2015 to regulate third-party taxi booking service providers, giving commuters assurance that the apps do not infringe on any taxi regulations. Currently, private hire vehicle service providers do not have regulations that are able to provide commuters with similar references.

  • Greater Efficiency in Meeting Taxi Demand

Recommendation 1: The Government and taxi operators to leverage on new technology and practices to improve the riding experience of commuters and to better match the demand and supply in the private hire market.

NTA said that it is important that Singapore’s transport policies and regulations, including the taxi business model, keep up with the advancement of technology and the preferences of consumers. The association added that doing so “should improve transport availability and contribute to greater efficiency use in transport assets.”

Source: NTUC This Week

 

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