Singapore
TAXI fares could soon be raised in
a move aimed at improving cabbies' income and at retaining drivers.
There is speculation that market leaders Comfort and CityCab are
planning an increase in the flagdown fare to S$3.80, with the meter
adding 30 cents for every 400m travelled.
The flagdown fare for the two taxi
companies' regular cabs is now S$3.70 for the Hyundai i40 model and
S$3.20 for the older Hyundai Sonata; for both these models, the
meter jumps 22 cents every 400m.
The price increase in distance
travelled is said to replace the morning and afternoon peak-period
surcharge of 25 per cent of the metered fare, which some commuters
have said is confusing.
Comfort and CityCab are both owned
by land transport giant ComfortDelGro; together, their two fleets
account for 60 per cent of the approximately 28,500 taxis running
on Singapore roads.
If these two industry heavyweights
revise their fares, the five other taxi companies are expected to
follow their lead.
A source said: "The big player sets
the pace and influences the market price. But it will be good if
their fares rise because it gives us an opportunity to do
likewise."
When contacted, ComfortDelGro said
it does not comment on fares.
The changes are said to be a
response to the stagnant takings of taxi drivers in the last three
to four years, even as rental rates of taxis have risen. The i40
costs almost S$132 a day to rent, and the Sonata, around S$110,
both prices including GST.
Back in 2011, the Sonata cost under
$100 to rent. ComfortDelGro began introducing the i40 only in early
2013.
The group was recently reported to
have expected revenue from its local taxi business to rise with the
replacement cabs, which command higher rentals, but some drivers
have complained that their monthly income has not risen
significantly despite increased demand for taxis in recent years.
An average driver is understood to take home about S$2,500 a month,
though their more hardworking colleagues can earn between S$3,000
and S$4,000.
Taxi companies have thus seen their
pool of active drivers shrink as these cabbies leave the industry
in search of better pay elsewhere, said a source, who claimed that
one of the smaller operators has been left with about 10 per cent
of its fleet idle.
"This is a problem that affects
everyone because the taxi company doesn't have enough drivers and
commuters don't have enough taxis."
He added that this is happening
just as many "good, professional drivers" are turning 73, when they
have to retire, and also when higher taxi availability (TA)
standards are being enforced. TA standards require a company to
have a minimum number of cabs plying the roads.
If fares are raised, drivers who
make at least 25 trips a day can expect to earn almost S$20 more
daily, which will swell their monthly income by up to 25 per
cent.
The source said: "With this
increase, I am sure it will encourage more cab drivers to stick to
the profession."
