Dec 4, 2007
Taxi fares likely to go up
soon
Flag-down fare may hit $2.80, and the meter will jump faster,
sources say
By Christopher Tan & Tracy
Sua
TWEAKS UNDER WAY:
Meters in ComfortDelGro's 15,000 taxis have been adjusted for next
year's public holidays, but the fix also includes a chip allowing
the fare structure to be adjusted wirelessly. -- ST PHOTO: JOYCE
FANG
TAXI drivers want it and their associations have asked for it, so
all that remains is for the biggest taxi operator ComfortDelGro to
go ahead and do it - raise taxi fares that is.
All the signs point to it happening, and soon. A year after the
last increase, which saw the flag-down rate go up by 10 cents to at
least $2.50 and peak period surcharge double to $2, sources say a
bigger jump is imminent.
The flag-down fare is expected to rise by 30 cents, bringing the
minimum starting fare to $2.80.
Newer taxis such as the Hyundai Sonata and Kia Magentis charge 20
cents more, so their flag-down rate should hit $3, The Straits
Times understands.
Distance and time-based rates are also expected to change.
Currently, the meter advances by 10 cents every 210m or every 25
seconds of waiting. After 10km, it jumps 10 cents every 175m.
Industry observers expect leading operator ComfortDelGro to make
the first move this month, but the company has remained mum about
its plans.
'Fare adjustment is a commercially sensitive topic, so we cannot
comment on it,' ComfortDelGro spokesman Tammy Tan said.
For the past three weeks or so, the company - which has a fleet of
15,000 taxis - has been sending its cabs to have their meters
adjusted.
Ms Tan said this was mainly to update the meters for next year's
public holiday slots. There is a $1 surcharge for public
holidays.
But The Straits Times understands the tweaks - taking around 20
minutes per cab - also include adding a chip to allow the metered
fare structure to be adjusted wirelessly.
Taxi drivers have been calling for a fare hike for several weeks
now, citing the higher cost of fuel and the two percentage point
rise in the goods and services tax, which has raised their rental
rate by an average of $50 a month.
Diesel at the pumps, after a discount, has risen by around 20 per
cent since the last cab fare increase in July last year, raising
fuel cost per cab by around $300 each month.
Member of Parliament Seng Han Thong, an adviser to the taxi
operators' associations, said taxi fares should be pegged to the
cost cabbies bear. He told The Straits Times two weeks ago that the
taxi operators' associations have been lobbying for a fare
rise.
'Although taxi drivers are always worried about losing business if
fares go up too high...they still hope there would be a fare
increase,' Mr Seng said.
Some quarters have called for fares to rise substantially to manage
demand, so that commuters who need a cab will find it easier to get
one.
Cabby Chew Lian Sheng, 37, said that is the 'only way to manage
demand', since taxi companies are unable to put more taxis on the
road because there are not enough drivers around.
Mr Chew said the flag-down fare should be between $7 and $10.
'There'd be a public outcry. But cabbies can earn a living with
fewer trips.'
Mr Chew is also of the view that surcharges must be removed or at
least, simplified, as they 'create an artificial market'.
Cabby Manjeet Singh, 62, said the flag-down fare should be $6 or
$7. 'It's pathetic now,' he said. 'We should also abolish the
surcharges - they are very confusing.'
Transport researcher and National University of Singapore lecturer
Lee Der-Horng said simply raising fares would not solve all taxi
woes. He said a 'package solution' was needed.
This includes having Electronic Road Pricing subsidies to encourage
cabbies to go into the Central Business District; more designated
taxi stands in the city centre; and simplifying surcharges.
Associate Professor Lee also suggested having 'a centralised call
booking system...This way, passengers will just need to dial one
number to get access to the pool of taxis from all taxi
companies',
He said doing away with all surcharges may not be the answer. For
instance, how can cabbies be encouraged to ply the 'graveyard
shift' otherwise?
Nevertheless, he reckons the imbalance between demand and supply
'cannot be fully resolved'.
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Copyright, 2007, Singapore Press Holdings Limited
