Today, the Public Transport Council (PTC) and the Land Transport Authority (LTA) announced that they have no objections to the proposals from taxi companies and Grab to implement dynamic pricing in the form of flat fares for trips booked via mobile applications.
The National Taxi Association (NTA) has been calling for the Government and stakeholders to adapt to changing scene of the taxi industry such as the increasing use of technology that better match supply and demand of vehicles through taxi booking apps and private hire vehicle services.
Specifically, NTA had sent a list of recommendations on private hire vehicle services to the Ministry of Transport in November 2015. This list included a call for charges and fees of these point-to-point transfer services to be revised so that it levels the playing field for taxi drivers.
More Options for Taxi Drivers and Commuters
In light of the proposals from taxi companies and Grab to implement dynamic pricing coupled with the support given by PTC and LTA, NTA is glad that the latest changes present more options for both the taxi drivers and our commuters.
Commuters can now choose between metered fares and flat fares for taxi services. With that, they can also reference prevailing rates from private hire services and do the necessary comparison before they choose a preferred mode of point-to-point service.
For taxi drivers, the latest change helps to level the playing field. Taxi drivers also welcome rental models options that different taxi operators implemented recently. As the industry evolves, changes to the rental cost structures and taxi fares will provide taxi drivers with both flexibility and greater support towards sustaining taxi driving as a livelihood.
Going Forward
We are glad that the Ministry has taken in feedback from the taxi drivers. Private hire vocational licensing is now mandatory and these vehicles must be distinctly identified for enforcement purposes to ensure commuters’ safety and security. The Taxi Availability standards were also revised to level the playing field for taxi drivers.
NTA hopes that more can be done to better match supply and demand on the roads, and will continue to engage LTA and the relevant stakeholders to look at how this can be improved by harnessing new technologies or implementing new incentive schemes to better meet commuters’ needs, as well as to help taxi drivers compete better amidst the changing transport landscape.
Mr Ang Hin Kee
Executive Advisor
National Taxi Association
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