Taxi fare hike a burden
to middle class: Analyst
But before adjusting their meters, other operators await details of
ComfortDelGro's plan
TODAYonline December 6, 2007
Leong Wee Keat
[email protected]
AHEAD of an imminent fare increase that some say will deal another
blow to the pockets of middle-class consumers, taxi operators are
waiting for market leader ComfortDelGro to reveal further details
before adjusting their meters.
This is despite the sentiments of at least one smaller taxi
operator, Premier Taxis, who told Today that fares should have been
raised as early as "six months" ago because of rising costs.
ComfortDelGro has notified the Public Transport Council of its
plans for a fare increase. The council said yesterday that it has
not received any letters from other taxi operators on fare
adjustments.
Regarding this issue, an SMRT spokesperson said: "We are looking
into it." The operator has about 3,000 taxis in its fleet.
Smart Taxis managing director Johnny Harjantho highlighted the
dilemma facing small taxi operators, saying: "If we are the ones
who take the lead by increasing our price, passengers can choose to
boycott us. If you see our taxi, you can choose not to board; you
wait for another minute and a Comfort taxi will arrive. On the
other hand, if you want to boycott Comfort, you may have to wait
for some time before a taxi from another company comes
along."
Mr Harjantho said his 800-strong fleet might follow ComfortDelGro's
lead in adjusting flag-down, waiting time and mileage rates, but
not on surcharges.
Taxi drivers and the various associations have lobbied for months
for fares to be raised in light of rising diesel costs and the
two-percentage-point increase in the Goods and Services Tax. This
week, Today readers urged taxi operators to do more to help drivers
fight rising costs.
Premier Taxis managing director Lim Chong Boo said his company,
which has about 2,300 taxis, has tried to help its drivers offset
rising costs by offering free rentals and subsidised diesel prices
to its drivers. But operators' costs are also escalating. "Our
hands are tied. How far can we go in helping our drivers before our
bottom line gets affected?"
Will the proposed fare hike substantially offset drivers' costs?
Observers are cautious, saying that rentals will have to stay
constant and that the "total package" of fare increases will have
to be looked at, before taxi drivers can breathe a sign of
relief.
What of commuters already primed to face projected inflation of
3.5 per cent to 4.5 per cent next year, after a 3.6-per-cent
year-on-year increase recorded in October?
Asked if the fare hike would cause further unhappiness, Mr Ong Kian
Min, deputy chairman of the Government Parliamentary Committee for
transport, said taxis are a premium service.
"People have a choice to take taxis, buses or the MRT. If they
think taxis are too expensive, they could move on to other modes,"
he said.
But he acknowledged that those residents not well-served by public
transport and who have to catch a taxi as a result could be
affected.
Mr Han Songguang, a transport researcher at the National University
of Singapore's Department of Geography, noted that the middle class
and the less mobile, such as the elderly or the disabled, would be
affected by the taxi fare hike.
The middle class, he said, is facing a "lose-lose situation" as the
hikes will not have a big impact on the problem of the shortage of
taxis, especially during peak hours.
What's more, "the middle class does not have a credible
alternative. Cars may be out of reach and too expensive, while
public transport may not bring them to where they want to go", said
Mr Han.
October's consumer price index for transport and communications
went up by 2.3 per cent as a result of higher prices of cars,
petrol and increased bus fares.
