The National Taxi Association (NTA) hopes that taxi operators will be able to provide more diverse hiring models for taxi drivers to choose from to allow taxi drivers to choose one that best serves their needs.
NTA’s Executive Advisor Ang Hin Kee said this when speaking at the sideline of HDT Singapore Taxi’s electric taxi service launch on 24 February 2017.
Mr Ang said it is important as different drivers will have different preferences and needs. Some taxi drivers would like a full-time employment model that provides security, stability, protection and benefits, while others would prefer an arrangement with the taxi operator that is not too rigid.
A majority of taxi operators in Singapore today work on a hiring model where taxi drivers rent a vehicle from a taxi operator, without benefits such as medical and CPF contributions.
“Any business model is up to the individual operators to decide on and what is most practical for their needs … Taxi operators and drivers must find a sweet spot to find their own preference,” said Mr Ang.
Full-Time Employment Model
HDT provides its drivers with full-employment terms and benefits, which include annual leave and CPF contributions. HDT drivers also start their employment by drawing a basic salary of around $1,600 a month, which may reach up to $3,200 after drivers meet a set target earning of about $7,500 plying the road.
Since starting operations in 2016, HDT now has a fleet of 50 electric taxis and will the number to 100 by June 2017, under the Taxi Service Operator’s Licence (TSOL) from the Land Transport Authority (LTA). The launch is part of an e-taxi trial, a pilot project co-led by the Economic Development Board and LTA to analyse the viability of electric transportation in Singapore.
The company hopes that the trial will yield positive results and plans to apply for a full TSOL that will allow them to operate up to 800 taxis or more.
Working with Partners
To recruit drivers and raise service standards, HDT has been working with NTA and NTUC’s e2i (Employment and Employability Institute) since October last year to provide a Place-and-Train programme, which includes a work-trial stint and on-the-job training. During the work trial period, drivers are given 80 hours to get a sense of what it is like to drive an electric car. Potential hires are paid on an hourly basis at a rate of about $7.50 an hour.
“With the valuable advice and support from NTA and e2i on the Place-and-Train programme, HDT will be able to deliver excellent service to all our customers, and also enable our employed transport specialist to earn a steady and attractive income,” said HDT Managing Director James Ng.
e2i CEO Gilbert Tan said that he is happy to work with HDT and NTA to come up with initiatives to place and train the local workforce in the new employment scheme.
He said: “This collaboration will raise the industry standards by promoting competition while raising the welfare benefits for taxi drivers in Singapore. By coming in as an enabler, e2i helps to develop an alternative career option for those who prefer greater stability with employment benefits.”
Drivers who have joined HDT through the work-trial programme include those who have experience in driving taxis.
HDT employee Charles Xavier, 43, who has been driving taxis for seven years, said: “When I was a hirer in my previous company, there was no safety net. If I fell sick, or an accident happened, there wasn’t much I was covered for.
“Whereas in HDT, if anything happens, the company will have your back. On top of that, I have two young kids to feed at home, so the CPF contributions provided by the company was also why I decided to switch companies.”
Another feature of the electric taxi service includes a GrabTaxi feature, where customers are able to order the services through Grab’s app.
