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From 1 January 2017, taxi drivers will no longer have to accrue the minimum 250km daily mileage.
This was among the announced changes to the Taxi Availability framework on 17 December 2016 by the Land Transport Authority (LTA).
Previously, taxi operators had to ensure 85 per cent of their drivers clocked this minimum mileage on weekdays, with 75 per cent required to hit this minimum on weekends.
LTA also removed the shoulder peak periods requirement. Shoulder peak periods are at 6–7am, an hour before the morning peak hours of 7–11am, and at 11pm–midnight, an hour after the evening peak hours of 5–11pm.
Taxi operators formerly had to have 60 per cent of their drivers on the roads during shoulder peak periods, and 85 per cent during the morning and evening peak hours. While the shoulder peak periods requirement has been removed, it is still mandatory for operators to meet the 85 per cent peak period standard.
Meeting Commuter Standards
The Taxi Availability framework was introduced in 2013 to ensure there were ample taxis on the road to meet commuters’ transport needs.
Since 2013, the percentage of taxis during peak hours has risen from 82 per cent to 93 per cent in the first nine months of 2016. The percentage of taxis clocking the minimum daily mileage has also grown from 75 per cent to 81 per cent in the same time span.
With operators having shown they are able to meet these standards consistently, LTA decided to remove the aforementioned requirements.
LTA also noted that the growing use of technology has also better helped commuters in getting transport through third-party apps and taxi companies’ in-house booking apps. Private hire car services like Uber and Grab have also become an increasingly popular alternative for commuters.
Introducing Technology
For its most recent review, LTA had consulted key stakeholders such as taxi companies, taxi drivers and the National Taxi Association (NTA).
NTA Executive Advisor Ang Hin Kee said: “Removing the minimum daily mileage is something NTA has been calling for even before the advent of third-party apps in the market. It [The previous requirements] gives commuters assurance that taxis are plying the roads, but it doesn’t mean the matching of demand and supply are best served through this. It also doesn’t mean that they can meet the commuters where they are and when they want it.
“Instead, this could be better served through technology. It [such apps] shows that taxi operators and LTA can be encouraged to introduce technology to better match demand with supply.”
Lim Meng Kok, 56, who has been a taxi driver for about 10 years, agreed the changes will eliminate driving for long periods of time without any street hails.
Mr Lim, who has yet to make use of any third-party app for bookings, said: “Driving more or lesser doesn’t affect the number of pick-ups I get a day, but business has been affected with more private hire cars around. Removing the requirement now means I can save a little on fuel.
“I’m aware such third-party apps can help with getting more bookings, but I don’t use them because I’m not sure how to do so. Hopefully, someone will teach me and I look forward to learning how to use them down the road.”
Source: NTUC This Week
