New lock-in rule for private-hire cars could moderate COE demand
Move will encourage fleet owners to be more cautious in bidding and reduce speculation
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A NEW rule on private-hire car (PHC) ownership could moderate demand for Certificates of Entitlement (COEs), by making major PHC fleets more circumspect in bidding and reducing speculation by smaller players.
The new rule, which took effect on Wednesday (Feb 19), imposes a three-year lock-in period for PHCs newly acquired by businesses. In this time, these vehicles cannot be converted to regular passenger cars, nor sold to individuals.
This ensures that businesses which acquire PHCs do so “predominantly for the purpose of leasing them to drivers providing ride-hail services”, the Land Transport Authority (LTA) said.
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