LTA reviews regulatory framework of Singapore’s taxi, ride-hailing sector as daily trips hit 613,000
Move comes three years after authority’s roll-out of licensing framework for operators
THE Land Transport Authority (LTA) is reviewing the structure and regulatory framework of Singapore’s point-to-point (P2P) transport sector, comprising taxis (street-hail) and ride-hail services, it said on Wednesday (Sep 13).
The move comes three years after LTA rolled out its licensing framework for taxi and ride-hail operators. Since then, P2P trips have risen 18 per cent to 613,000 trips in July 2023, from 517,000 trips in 2020. (* see amendment note below)
“While taxis continue to play an important role in serving high-demand areas such as Changi Airport, tourists and commuters who may be less tech-savvy, there is a growing preference for ride-hail trips among drivers and commuters,” said Senior Minister of State for the Ministry of Sustainability and the Environment Amy Khor in a Facebook post on Wednesday.
The review will focus on the availability of P2P supply, the resilience of P2P services and the inclusivity of such transport services, LTA said in a press statement.
Some areas include improving P2P supply during late-night hours when there are some shortages, or ensuring that operators provide services with minimal disruption and downtime.
LTA is also looking at how operators can ensure that their services cater to the additional needs of commuter groups such as wheelchair users and families with young children.
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Senior Minister of State for Finance Chee Hong Tat, who is also Acting Minister for Transport, noted: “Where there are trade-offs to be made, we strive to balance the interests of key stakeholders such as operators, drivers and commuters.”
Discussions with tripartite partners such as the National Taxi Association and National Private Hire Vehicles Association are underway, LTA said, adding that it will also consult widely and continue to engage operators and P2P drivers, as well as different commuter groups.
Yeo Wan Ling, adviser to the National Taxi Association and National Private Hire Vehicles Association, published a Facebook post in response to the review. She cited some of the challenges faced by drivers, including balancing continued increases in business costs – especially with fuel and vehicle rental increases – and longer post-pandemic driving hours for their livelihoods.
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She noted as well several significant shifts in P2P driving, which include an ageing driver profile, the use of technology which may not be as familiar to the ageing worker segment, and the convergence of ride-hail and street-hail business models. These call for a relook into the longer-term development of this sector, Yeo said.
LTA plans to complete the review by the second quarter of 2024.
*Amendment note: The story has been changed to reflect LTA’s correction that the 517,000 P2P trips taken occurred in 2020 instead of November 2020.
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