Singapore does not cap number of ride-hailing operators; no conclusive link to COE prices
Open, contestable point-to-point transport sector benefits drivers and commuters: Amy Khor
SINGAPORE has no plans to limit the number of point-to-point transport operators, Senior Minister of State for Transport Amy Khor said in Parliament on Tuesday (Jan 7).
Point-to-point transport includes ride-hailing and self-drive services in private hire cars and taxis. Existing regulations aim to keep the sector “open and contestable”, she said, adding that a wider choice of platforms will drive competition and service improvements and help match demand and supply of both commuters and drivers.
Dr Khor was responding to Member of Parliament Desmond Choo, who asked what impact the entrance of two new ride-hailing operators might have on the availability of private hire cars on the road; ride fares; and Certificate of Entitlement availability.
In December 2024, the Land Transport Authority issued provisional one-year licences to two new ride-hail operators, Geo Lah and Trans-cab Services.
Dr Khor said there is no conclusive evidence that the entry of new ride-hail operators will affect Certificate of Entitlement (COE) prices, noting that from 2022 to 2024, the bulk of demand for passenger car COEs – Categories A and B – were from individual local buyers.
COE prices are determined by many factors, including macroeconomic conditions and COE quota supply, she said.
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“Based on our observations, we are not able to draw conclusions about a causal link between the entrance of new operators and impact on COE price, simply because COE price is really multifactorial in its determination.”
Demand-driven sector
The point-to-point sector is “fundamentally a demand-driven transport mode”, with supply ultimately based on whether there is actually sufficient demand and not the number of platform operators, said Dr Khor.
Having more platform operators means more competition and choice for both commuters and drivers, she added.
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“We also ensure that the operators are transparent about their fares and commissions, so that the drivers can make informed decisions about when to drive and what trips from which platform to accept so that they can maximize their earnings based on the platforms they choose, as well as driving habits or preferences.”
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