LTA cracks down on illegal
rental car 'taxis'
SINGAPORE - As phone apps for booking a taxi or a limo get more
popular, drivers with rental cars are also jumping in to grab these
calls, according to car rental industry sources.
These drivers are breaking the law; and this has prompted the Land
Transport Authority (LTA) to act.
LTA officials met car rental companies and taxi operators last week
to remind them of the rules, the second time it has done so in less
than a year.
Other than taxis, only company-owned vehicles insured as limousines
and driven by its employees are allowed under the law to ferry
passengers for a fee.
This rule is to ensure passengers are covered by insurance should
something go wrong during the journey.
A commuter, who declined to be named, posted on Facebook that she
booked a cab through GrabTaxi last Monday, but a Ford car turned
up. She had no qualms hopping in but she would advise children to
decline, she said.
Regular cab commuter Lau Sau Kuen told The Straits Times she would
steer clear of the new taxi alternatives for now. Ms Lau, a
marketing professional in her 30s, said she would reconsider only
if the authorities put in adequate measures to "secure public
confidence" in the new services.
Meanwhile, the Singapore general manager of app GrabTaxi, Mr Lim
Kell Jay, said its services were above board as his company ties up
with "various limo companies" to provide an alternative to
taxis.
GrabTaxi made its appearance in Singapore six months ago, while
US-based Uber launched UberX - its closest alternative to taxis -
last month.
GrabTaxi is a third-party taxi booking application which commuters
can download onto their smartphone, and allows cabbies to bid for a
booking job via a system that leverages Google Maps and
location-based service Foursquare.
Barely a month after it arrived, GrabTaxi was instructed by the LTA
to remove a tipping function from its app. It allowed commuters who
wanted a cab urgently to offer to pay more to secure one.
On March 25, MyPaper reported that car owners can sign up with
UberX to ferry commuters in their cars. Those who do not own cars
could rent one from the company to do so.
Earlier this week, Uber regional manager Mike Brown said the report
was inaccurate. "We and our partners have complete respect for the
Road Traffic Act of Singapore, and we abide by the letter of the
law." Those caught flouting the law can be fined up to $3,000 or
jailed for up to six months or both. The cars involved may also be
impounded.
Singapore has about 17,000 rental cars, but only an estimated 500
to 1,000 are registered as limousines. Insurance for limos is three
to four times that of a private car, while the premium for a taxi
is about five times.
As it is difficult for commuters to distinguish legal limos from
illegal ones, industry players are suggesting safeguards.
Mr Peter Cheong, president of the Vehicle Rental Association,
advises people hiring a limo via mobile apps to ask for a written
assurance from the rental or leasing company that the vehicle used
is legal. The association has also advised its members not to rent
their cars to those who intend to use them for ferrying
commuters.
"Members should inform hirers, if possible in writing, that the
vehicles are solely for their own use and are not to be sub-hired
for reward," he said.
Meanwhile, taxi operators, some of whom also own rental and limo
companies, are circumspect.
Prime Taxi managing director Neo Nam Heng said: "These new services
will help ease peak-hour demand for taxis. But the consumer has to
be well protected... the cars used have to be properly insured, and
the drivers have to be staff of the company."
ComfortDelGro Corp, the largest taxi company with 16,000 cabs,
said: "We are used to changing environments. We will continue to
invest and innovate to stay ahead of the competition."
