Today, the Ministry of Transport (MOT) announced a new Private Hire Car Driver Vocational Licensing Framework (PDVL) which takes care of the safety and protection of commuters.
In November 2015, the National Taxi Association (NTA) submitted its proposal on the review of private hire services to the MOT, consolidating feedback, concerns and suggestions from taxi drivers. The NTA reiterates our opinion that any review pertaining to private hire vehicle services should adhere to three key principles:
• Assurance of commuters' Safety and Security
• Ensure Fair Competition amongst service providers who offer similar point-to-point transfers
• Embrace new technology and evolve business model for Greater Efficiency on the use of our transport assets at the national level
Assurance for Safety and Security
We are glad that the MOT acknowledged the safety and security concerns of commuters with regard to private hire services. The proposed PDVL framework has included our suggestions for private hire drivers to be registered with the Land Transport Authority (LTA) for criminal and background checks; the implementation of vocational licensing for private hire drivers; and to have clear markings on private hire vehicles.
Bolder Steps Required To Review Taxi Regulations for Fair Competition
On top of the proposed framework, commuters should also be protected with a clear and transparent accountability system provided by the private hire services, so that there is proper recourse in the unfortunate event of accidents and disputes.
Today, insurance coverage and other related compliance requirements such as emission standards of a taxi vehicle are imposed on taxi operators. These add to the costs of operating a taxi fleet, which are then passed on to taxi drivers and in turn to commuters. MOT should go further to review these rules so as to level the playing field between taxi drivers and private hire services in terms of cost structure and pricing flexibility. In particular, to allow taxi operators to dynamically change their pricing according to market demand and supply.
Need to Evolve by Using Technology to Promote Greater Efficiency
MOT should also remove unnecessary rules, such as the 250km daily minimum mileage required of taxi vehicles. The Ministry should embrace new tools and technology like third-party apps, to improve on availability management and price monitoring.
NTA believes that the service quality standards for taxis and private hire services should also be harmonised. MOT should embrace new technology like direct user reviews, to better monitor the requisite service standards for both taxis and private hire services. All in all, this would help encourage optimal usage of our taxi and private hire fleets.
With the transport industry evolving rapidly, there is an urgent need for all stakeholders to adapt to these changes. To ensure that the stakeholders are able to compete fairly, and that commuters receive reliable and safe services, we urge the MOT to include the above suggestions in its licensing framework.
Mr Ang Hin Kee
Executive Advisor
National Taxi Association
