ComfortDelGro, Grab, Strides extend help to drivers in a jam amid Autobahn car repossessions
All three platform operators have waived the security deposit for these drivers
[SINGAPORE] ComfortDelGro (CDG), Grab and Strides Premier are offering their vehicles on favourable terms to private-hire car drivers whose vehicles were repossessed by creditors of Autobahn Rent A Car.
All three platform operators have waived the security deposit for these drivers, among other terms such as additional incentives to recover lost income and free rental for the first three days.
Announced on Wednesday (Jan 7), the initiative was a collaborative response from the National Private Hire Vehicles Association (NPHVA) and the National Taxi Association (NTA), the Land Transport Authority (LTA) and the platform operators.
The previous day, The Straits Times had reported that Autobahn Rent A Car, which supplied cars to private-hire drivers, was suspending operations. The company has a fleet of 1,700 vehicles.
The associations, LTA and the platform operators said in a joint statement that their priority is to help affected drivers get back on the road as quickly as possible, noting that drivers were left without a means of earning a living when their vehicles were recently repossessed by Autobahn Rent A Car’s creditors.
The company’s application to the High Court for protection against creditors was dismissed on Dec 26 last year.
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Together with its associated companies, Autobahn Rent A Car is reported to have debt exceeding S$300 million, with creditors including financial institutions and major banks. A significant portion of this liability is for hire-purchase agreements for the vehicles.
The NPHVA, an affiliate of the National Trades Union Congress (NTUC), represents private-hire vehicle drivers, while NTA is an association for all taxi drivers in Singapore.
Yeo Wan Ling, the adviser to NPHVA and NTA and assistant secretary-general of NTUC, said: “We know this situation has created significant hardship for affected drivers, and we have engaged a number of them.
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“Drivers depend on their vehicles to earn a living, and we take their livelihoods seriously... NPHVA and NTA will continue to work with LTA and platform operators to protect and support our drivers.”
The three platform operators, which have their own vehicle-leasing arms, are waiving deposits for affected drivers to reduce the upfront cost to rent a vehicle.
Other support measures include additional platform incentives to help drivers recover lost income by CDG and Grab, and Strides Premier offering free rental for the first three days.
NTUC is also offering help to affected members on contractual matters relating to Autobahn Rent A Car.
In the joint statement, LTA said it had received information that some of the cars from the company do not have valid motor insurance, because the policies were not renewed or were cancelled. Valid insurance and road tax are mandatory.
Through its lawyer, the car leasing company said on Jan 6 that it was suspending operations due to operational constraints and the cancellation of insurance for the vehicles.
On its Facebook page, NPHVA said that it was organising engagement sessions for affected drivers. THE STRAITS TIMES
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