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Market for taxis and taxi-like services doubles

By Faiming_low on 01 Mar 2017

Attached Image The market for taxi and taxi-like services has doubled since private-hire car services Uber and Grab began operating here in 2013.

Transport Minister Khaw Boon Wan told Parliament yesterday that these private-hire services have now claimed about half the market for point-to-point transportation services.

This comes as the total number of taxi trips has remained relatively stable, with only a slight drop from an average of 967,000 trips daily in 2013 to 954,000 trips daily last year, he said.

"That means that the new players have been meeting new demand or unmet demand," he said, in response to Mr Gan Thiam Poh (Ang Mo Kio GRC).

Mr Gan had asked if the Transport Ministry would control the private-hire car population, citing concerns that the expansion of private-hire car services could drive up Certificate of Entitlement (COE) premiums.


Demand from Uber and Grab has fuelled an increase in the rental car population over the last two years.

There are now about 53,000 rental cars in Singapore, compared with around 29,000 in 2015.

Mr Khaw said his ministry will leave the growth of private-hire cars to market forces and monitor the situation.

New services that apply innovative business models and improve the commuting experience should not be stifled, he added.

"The best approach I think is to let Singaporeans decide," he said.

Referring to a recent survey conducted by the Public Transport Council, he said commuters expressed greater satisfaction with Uber and Grab compared with taxis in areas such as customer service and waiting times.

However, he noted that satisfaction with taxi services also went up between 2015 and 2016, due to taxi operators ramping up efforts to improve service in the face of competition from Uber and Grab.

"So in this particular space, competition has been good," he said.

On private-hire car services affecting COE premiums, Mr Khaw said the evidence "does not suggest" premiums are going up as a result of private-hire car services.

He said the bids submitted during each cycle were "more or less" at the market rate, and that private-hire car firms were "not being particularly aggressive" in bidding.

The following article is written by Christopher Tan, a Senior Transport Correspondent with The Straits Times.

Viewed: 3,764 times

Faiming_low
Written by Faiming_low
Since young, Fai Ming has always centered his life around cars. In fact his first word was 'car' and not 'mum' or 'dad'. Aren't kids cute?



  • 1
Vinceng Mar 03 2017 03:29 PM

Minister Khaw's views that "...evidence does not suggest premiums are going up as a result of private-hire car services" seem to differ largely from industry experts and reporters who had commented in past media releases that car rental companies are driving up COE prices.

 

So now, who is telling the truth and who is the liar?

 

UBER BIDS CONTINUE TO PROP UP CAR COE PRICES

http://www.straitsti...-car-coe-prices

 

FIERCE BIDDING BY UBER KEEPS COE PRICES UP

http://www.straitsti...s-coe-prices-up

Philipkee Mar 03 2017 09:59 PM
Actually both. Uber and grab stop the price of coe from sliding but they are not factors in coe prices going up. Example is coe going below 50000 Uber and grab will rush in to bid so coe does not fall. But if coe is above 50000 they don't bid so are non factors in the coe above 50000. Cos he specifically say they do not cause the coe to rise but never say they prevented a fall in prices
Photo
Anzael Mar 11 2017 06:23 PM

The key reason for market for taxis doubling is the pricing strategy. It has become quite competitive with brands targeting the whole country & introducing the services. With consolidation of the taxi market; the prices ought to go low and thus benefit the consumer. <a href="http://www.anzael.com"> Anzael </a>

  • 1
 
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