This article from iTODAY.
Left to the market, are taxi fares getting out of control?
The latest revisions on how much taxi passengers have to pay
have turned the spotlight on the fare structure, with some
observers, including at least one Member of Parliament, repeating a
call for the authorities to regulate fares again. The fare
structure – which has become increasingly unwieldy and to some
extent, inexplicable – should also be re-examined, they
said. Taxi fares were deregulated in 1998. National University
of Singapore’s Associate Professor Lee Der Hong noted that the
deregulation was to “allow more competition into the mix and
encourage more players into the field”. But the current landscape
is practically a monopoly or duopoly, the transport expert
said. Last week, ComfortDelGro, which operates some 15,600 of
the 26,700 taxis here, announced revisions to its taxi fares.
They include raising the flag down fare and extending the hours
subjected to peak period surcharge.On Tuesday, SMRT,
the third-largest operator here with 3,000 taxis, followed suit by
unveiling fare adjustments identical to
ComfortDelgro’s. Arguing that there is an urgent need for the
Government to intervene, Assoc Prof Lee said: “The situation is at
a terminal stage … The market mechanism is not working, if it was a
competitive market, passengers should see a price drop and improved
service quality but what we see is the opposite.”Concurring,
Mountbatten MP Lim Biow Chuan told Today that he will be suggesting
at the next Parliament sitting that the Ministry of Transport carry
out a study on whether taxi fares should be regulated
again. The call for taxi fares to be regulated has been
brought up previously in Parliament. In March, then-Transport
Minister Raymond Lim reiterated that taxis “are not an essential
service that most Singaporeans rely upon as their principal means
of transport”. Taxis are “closer to private transport”, he had
said. He added: “Competition helps to keep fares competitive. Like
other competitive industries, the taxi industry is subject to
regulatory oversight under the Competition Act.” Speaking to
Today, Ang Mo Kio GRC MP Ang Hin Kee felt taxi fares
should be left to market forces. But he noted: “Maybe it is time
for others to ramp up their fleet or merge into adequately-sized
players to make (the market) work more effectively.”How bookings
and surcharges should be: Experts Mr Lim Biow Chuan felt there
was insufficient justification for the latest fare revisions. An
evaluation should be carried out on why “prices are so high and
services poor”, he said. Adding that the plethora of
surcharges is “confusing”, Assoc Prof Lee went a step further – he
felt the entire fare structure should be revamped. Arguing
against imposing surcharges during periods when there is high
demand for taxis, Assoc Prof Lee said that the midnight surcharge
is the only surcharge which is justified – as demand will be lower
during the wee hours and without a surcharge, there is little
incentive for taxi drivers to be out on the roads. He added that
according to a study done by his students, call bookings do not
make a difference to the amount of time that passengers spent
waiting for taxis. Neither does it affect the amount of time
that taxis cruise around without passengers. On advanced bookings,
Assoc Prof Lee argued that taxi operators should, in fact, give
discounts for commuters who book taxis in advance as they are
helping the companies manage resources to meet demand. The
simplest way to restructure the system would be to just have a flag
down rate and variable rate, said NUS transport
economist Anthony Chin. “The peak hour charge, congestion charge
can be built into the variable rate,” he said. Public
Transport Council (PTC) chairman Gerard Ee reiterated that the
Government’s obligation is to provide affordable public transport
to the masses and this is done with the buses and trains. When
it comes to taxis, the PTC is informed of any fare
revision by the operators. But it has no say in the matter. Mr Ee
noted: “Like any other retail product, consumers feedback has an
influence on the price and commuters should send their feedback to
the operators if they are unhappy.”
easy way to solve call the ministers 1 juz to drive taxi for 1
day they will knoe.......
if no peak hr surcharge who would wan to drive frm 5-8pm when
all the rds
r so congested......... give me i rather relax at hm hav dinner
maybe even make
love with the missus bfore i start work at
8pm................
