Time to steer taxi, ride-hail industry toward meaningful structural changes

The Land Transport Authority's (LTA) proposal to regulate ride-hailing companies offers a prime opportunity for much-needed structural changes in the point-to-point transport sector.

Levelling the playing field between the traditional taxi operators and the ride-hailing upstarts in terms of the regulatory burdens they face is a step in the right direction. But it is as important, if not more so, that the levelling is done correctly to ensure that the rules reflect new realities and do not obstruct innovation while providing consumer protection.

LTA is in the midst of a public consultation on plans for a licensing regime for pure-play ride-hailing service providers, which are currently unlicensed. The transport regulator is also proposing a ban on driver-exclusivity conditions for ride-hailing services, and seeking feedback on whether and how to improve safety.