The embattled taxi industry, which has been reeling from disruptors such as Uber and Grab, has taken another blow - sharply higher government fees.
The Land Transport Authority (LTA) has told operators that their operating licence fee will rise from 0.1 per cent of gross revenue to 0.2 per cent this year, and then to 0.3 per cent next year.
This is the first such increase in more than 10 years. For a mid-sized operator such as SMRT, the fee hike translates to more than $100,000 in additional costs per year.
Based on its taxi revenue for the past two financial years, its fee would go up from an estimated $140,000 to $420,000 next year, assuming revenue remains constant.
Operators contacted were furious but resigned. "What can we do?" the manager of a small firm said. "It's not as if the rate is negotiable."
Another said: "That's a doubling and trebling of fees in just two years. We're going to appeal. It may be useless but we have to register our protest."
The LTA was not available for comment but The Straits Times understands that the fee hike has to do with higher costs associated with monitoring taxi service standards.
Currently, private-hire operators such as Uber and Grab do not pay this fee. Their service standards are also not monitored by the LTA.
National Taxi Association executive adviser Ang Hin Kee said operators may pass the cost on to drivers by raising rental fees. "Higher cost may trickle downwards," he said.
For cabby S.C. Wong, it is already starting to trickle down. Mr Wong, 64, said ComfortDelGro has been trying to persuade him to swop his Hyundai Sonata for a costlier Hyundai i40 cab.
"I refused because it costs 30 per cent more. The market is very bad now," he said. "My takings have fallen by 20 per cent to 30 per cent from last year, when Uber and Grab started full swing. My call bookings have dropped too."
Mr Wong, who has been driving a taxi for 15 years, said the i40's higher flag-down fare of $3.70 - 50 cents higher than the Sonata's $3.20 - "cannot cover the $30 increase in rental".
"If I get 20 passengers a day, that's only $10 more," he said.
Asked what he will do when his Sonata is deregistered in March, he sighed. "I don't know. Maybe by then, I would have stopped driving."
ComfortDelGro said the higher rental reflects the higher purchase price of the i40.
A spokesman said the i40 - which is slightly smaller than the Sonata - costs more because it complies with Euro 5 emission standards.
The i40's rental is $130 a day, while the Sonata's is as low as $100. The $30 hike means ComfortDelGro rakes in nearly $88,000 more in rental per cab over its eight-year lifespan. The group has about 17,000 taxis.
But even as it is piling higher rentals on drivers, Singapore's biggest cab operator is trying to woo cabbies who have quit with a two-month 50 per cent rental discount.
"The scheme is a promotion to attract drivers who have left and wish to rejoin the company," the spokesman said. "This is part of our ongoing efforts to recruit drivers."
Industry players said the percentage of unhired cabs has risen - from single digits before 2013 to more than 10 per cent now for some operators.
For commuters, the days of $3.20 flag-downs are numbered. Sonata taxis will all be replaced by i40s in the next couple of years.
A version of this article appeared in the print edition of The Straits Times on June 24, 2016, with the headline 'Cab firms hit by higher operating licence fees'.
Make Uber and Grab default choice?
siao. like that who want to become taxi operator. better be private hired car....not regulated. somemore can anyhow change fare rate. can take more than 1 pax in a single trip. really no government n no need pay license fee.
Originally posted by Jonathan Fan:Make Uber and Grab default choice?
it is just a matching apps. it has become a real money making business without any investment in vehicle or investment in singapore like uber. even thier credit card transaction is not done here.
The Land Transport Authority (LTA) has told operators that their operating licence fee will rise from 0.1 per cent of gross revenue to 0.2 per cent this year, and then to 0.3 per cent next year
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tia yr already half gone. all the budget already done. now then tell ppl to increase license fee. lta really cannot plan. cannot wait for next year.
http://www.mot.gov.sg/News-Centre/News/2003/Licensing-Fees-Of-Taxis/
last time $300 per taxi per year.
Originally posted by Jonathan Fan:Make Uber and Grab default choice?
yep
they are my top choices now
but now a bit geared towards grab
now uberX no show fare estimate......... quite risky
for grab...... even if go horlan oso same price
i40 got cost $88000 more than Sonata meh? Where the extra money they collected went too?
Personally I prefer Sonata than i40 because I OMO and i40 requires cabbies who drive only 6 days a week to drive more during the 6 days because Comfort requires cabbies to pay rent on the 7th day too. Also there is rent to be paid on sick days to be considered too.
Even if can find relief for the 7th day, most would only drive 1/ shift so hirer still have to fork out money for the other 1/2 shift.
Are you sure Uber drivers don't speed? Go read Uber forum especially when they talk about TPH
Originally posted by tanyantao:Uber and Grab safer, all drive below speed limit. TD all drive so fast.
Someone mention AP 116km/h. Some pax cannot take the trill.
You are not a cabby for sure.
I40 is a lousy car.Boot too small,undercarriage too low,no power,wobbling too much(suspension system no good),worse pax lamp u can't reach it,gotta beg Pax to off for u.
Car rims always get dented n scratch.
Originally posted by bowah:Aiya, at least lau charbo mod is frank and truthful mah, it is not a matter of support or not support, realistically speaking, who dun get the best and lowest price in everything.
Even free textbooks at CC, you can see parents driving BM, mercs and audi parking there rushing in the Q to get the free textbook for their kids. That is fundamental human behavorial regardless of what status and position you have in the society.
And as a TDs, I do see many living in 3 storeys bungalow going to Australia tour by tigerairway. I was asking them…Sir, SIA First Class?...end up, T2, tiger air…somemore can tell me ntuc member take tigerair very cheap, somemore got priorty Q and seat..
So it is naturally for people to seek the cheapest as long as it can go from A to B and B to C. I guess as a taxi driver, during our off day, we might also call grab and uber and find the fare is so much cheaper than cab.
Support is one thing, but you also need to support with sense, not end up becoming a die hard fan.
Just like this forum, so far, it is free…so I come in lor, if force me to be Pee member,,sori
Just keep opening the thread. She can keep deleting. You just keep posting.
huat ah, more to come
Grabcar have alrdy killed off cdg advanced jobs
advanced is a waste of time.
Originally posted by decent02:OK post here.
Cbd evening peak around 7.30pm on weekday.
China Sq taxi stand cross st to cove way sensa.
My cdg sonata $14.70 taxi stand pick up with no booking
Grab car quoted her $15.
Took my taxi because she waited too long for grab car.
With booking my taxi for the same trip would cost $18.
Grab car around 17% lower in Cbd evening peak.
Cabbies…take note of the lower fare from grab car.Those got midnight rates comparison please also post
grab fare is not really cheap n may not be the same every time. holland close area to airport flag non peak is about $20. grabcar start from $26, may change to $29. peak demand start from $30 n can go as high as $71.
Evening peak after 6pm from River Valley to customs with Uber only $21. Taxi would have killed me $26 at least with booking.
Originally posted by Neutral-Thinker:i40 got cost $88000 more than Sonata meh? Where the extra money they collected went too?
Personally I prefer Sonata than i40 because I OMO and i40 requires cabbies who drive only 6 days a week to drive more during the 6 days because Comfort requires cabbies to pay rent on the 7th day too. Also there is rent to be paid on sick days to be considered too.
Even if can find relief for the 7th day, most would only drive 1/ shift so hirer still have to fork out money for the other 1/2 shift.
Comfort/Citycab should go back to Toyota and Nissan instead.
I saw a new Toyota Prius with Comfort livery a few days back. Are they getting a big fleet for that?