SG Complains

High fares the taxi solution

According to AsiaOne:

IT IS time taxi companies and the Land Transport Authority (LTA) stopped tiptoeing around the cab issue and acknowledged that all is not well. First, stop pretending that the taxi service here is living up to anywhere near Singapore’s reputation for management efficiency.

It has got considerably less reliable and vexing. In no other developed nation can one encounter cruising cabbies who refuse passengers on a whim, and who resort to fare-piracy to augment income. Second, the LTA’s toughening of penalties against offending cabbies, though welcome, is treating the symptoms, not the condition. Offenders are too numerous for the enforcement resources deployed.

This would embolden more cabbies to turn to underhand means to raise income, which in turn must worsen the patchy availability of cabs. Taxi companies have shown little inclination to change their business model of rental hire. The LTA should flex its regulatory muscle and get the operators to help it pinpoint systemic weaknesses and the willful misconduct these are abetting.

This newspaper has little doubt that incorrect pricing of the service relative to demand is the root cause. Taking a cab should be a boutique service that is priced at a premium, not the supermarket deal available to all and sundry that it is.

Fares are set much too low. Cabbies’ earning capacity is way behind the city’s price curve. Fuel prices happen to be rising. Taking into account the fact they do not receive leave, sickness and CPF benefits, it is little wonder the service is riddled with inconsistencies.

Operators have resorted to tagging on surcharges – a confusing smorgasbord that annoys locals and visitors no end – and the booking charge, to help cabbies earn more. Without these surcharges, there will be no need for cabbies to engage in guerrilla warfare with commuters. This is fundamental.

We have proposed before a more transparent way of raising earnings. First, increase sharply the flagdown rate of $2.40. A range of $7 to $10 is not outrageous. Rate of increase per distance travelled must also rise.

Second, the higher fare must be accompanied by the removal of all surcharges except the airport charge. Third, the call-booking system should be free. It is not income support but a requisite call service when cabs are no longer permitted to cruise in the downtown area.

Abuse of call bookings by cabbies seeking to earn a few dollars more is widespread. Raised fares are admittedly a drastic step to be taking. There will be a difficult transition when demand will fall, but higher fares will boost earnings when core demand has stabilised.

A shakeout would be inevitable, with some drivers forced out. This is an opportune time to make the move as alternative employ for them is plentiful.

- This is what I thought exactly!! Increase the flagdown rate! Try it with 50% of the fleet first as a trial!

Also, send these cabbies to be more familiarize with the road and traffic conditions. The taxi usually ask customer where they want to go to avoid going using the route that the customer don’t like but during these decisions making it sometimes sounds like they ask on purpose to go to the longer way to earn more money and the atmosphere in the taxi changed drastically.

Some taxi driver claimed that he is not familiar with some roads…and take wrong turns everywhere. These taxi drivers SHOULD EARN LESS, make complain feedback telephone or internet available for these inexperience drivers to cut their metering charges if more then two similar complains in a month.