SINGAPORE: The Land Transport Authority is imposing
tighter licence requirements on operators to improve taxi
services.
In particular, there will be new measures to ensure
call booking services are more reliable and
efficient.
Some commuters have complained that drivers use the
"on-call" sign to refuse flag-down passengers, especially just
before surcharges kick in.
To minimise abuse, within two years, the sign will be
centrally-controlled, and switched on only when the driver accepts
a call booking.
Measures have also been put in to improve booking
reliability.
From October, operators have to meet higher standards, in terms of
the answer rate for call bookings, the percentage of calls
successfully matched with taxis, and the time taken for the cab to
arrive.
And soon, all cabs will have to be equipped to handle call
bookings, where previously this wasn't mandatory under current
operator licence requirements.
And to ensure operators have the critical mass to provide adequate
service, the Land Transport Authority has doubled the minimum fleet
size, from 400 to 800.
Out of the seven existing operators, Prime and Smart cabs are the
smallest, with 700 cabs each. They have to meet the minimum when
they renew their operator's licence.
For Prime, that's 2017. But for Smart cabs, it's next year. Smart
said ramping up the fleet size is not its main worry. Its concern
is that fluctuating car premiums will make it harder to set monthly
rents that are market-competitive.
Its managing Director, Johnny Harjanto said: "Suppose a car costs
me S$40,000 and COE costs S$60,000 now. Based on the total of
S$100,000, I set a monthly rent of say, S$100. What if a few months
down the road, COEs drop and my competitor buys the car cheaper?
They can set a lower rent, but when that happens what can I
do?"
Smaller operators tend to perform badly in quality reviews.
For instance, in the December Quality of Service review published
by LTA, Smart failed in three out of five service categories,
including being unable to cater to 70 per cent of call bookings. It
also failed in both safety requirements. Prime cabs also fared
badly in terms of meeting call bookings.
Observers said they could consider integrating some of their
operations.
"Not necessarily in terms of real business management, but to form
a common call centre so they can share their taxi fleet between the
different companies. Also from the passengers' point of view, they
are given another, more practical choice," said Associate Professor
Lee Der Horng, from the Department of Civil Engineering at
NUS.
Authorities are also studying how to utilise taxis better.
In the last five years, the number of taxis grew by 20 per cent,
but total distance travelled remained the same.
Transport Minister Lui Tuck Yew, said: "I have asked LTA to study
the feasibility of regulating taxi companies to have a certain
minimum availability for their fleets, particularly during peak
hours when availability is crucial."
LTA is also studying how to increase the number of dual-shift cabs
on the roads.
The study is expected to be completed later this year.
- CNA/cc