Nov 22, 2007
I STRONGLY disagree with the editorial, 'High fares the taxi solution' (ST, Nov 17), that raising the flag-down fare is the way to solve the taxi problem. Not every problem can be solved by a price increase; such an approach can, at best, offer only a temporary solution.
The current problem of taxi drivers earning a low income is caused more by high taxi rentals, even as taxi operators announced ever-increasing profits.
Having more competition is one solution; another is to allow taxi drivers to own their taxis, returning to the days of the private taxi.
Taxis serve the stratum between those owning private cars and the large majority taking public transport. Raising taxi fare is like increasing ERP rates on the CTE. The knee-jerk reaction will see some regular taxi commuters switching to public transport but, after finding public transport not fitting their lifestyle, they have no choice but to go back to taking taxis.
Another possible scenario is that, initially, with fewer people taking taxis, many taxis will cruise empty. The lack of sufficient customers will force a reduction in the number of taxis, which then again leads to the situation of not having enough taxis when needed.
The problem may lie in the high cost of owning a car versus the relatively low public-transportation charges, creating a large 'middle-stream' of taxi commuters.
A possible solution is to introduce a new class of 'premium' taxis available only through booking. Those who choose to book such taxis would have to pay a much higher booking fee and be guaranteed a taxi within, say, 10 minutes of making a call.
Boon Chuan Whee
2 comments:
(#2)
takefive
November 22, 2007 Thursday, 06:24 AM
10 mins waiting time is too long if you're paying a much higher booking fee.
(#3)
annewongholloway
November 22, 2007 Thursday, 07:49 AM
From reading some of these posts, may I understand that the taxi companies make significant profits and their top brass earn salaries. On the other hand I also read (and hear) that taxi drivers find it hard to cover costs as rental (and fuel) take a big chunk out of any earnings.
So, even a dummy like me would come to conclusion that taxi drivers and commuters suffer so that the companies and their bosses make money.
Also this seems to be the case with our other forms of "public" transportation - the customer is far from first.
And what if one scrimps and saves to buy and run a car? The costs are enormous and the taxes and fees we pay go into the country's coffers. I am not sure what those billions go towards paying, but it is not for road users or the commuting public.
The shame is that if our public transport were better run, in many cases we'd not need our cars (look at Hong Kong). But then that would not be good for the government nor the motor industry.
(#4)
DSTA_87
November 22, 2007 Thursday, 08:12 AM
In Singapore's case, I don't consider raising taxi fares as a knee-jerk reactions. Introducing so many different surcharges are. Of course the best solution is to reduce the rental rates, but are taxi companies ready to do that?
(#5)
kjks
November 22, 2007 Thursday, 08:14 AM
I fear for the future of Singapore. This is really getting serious. The folks in charge have refused to admit that there is a problem! They are still in denial! Catch errant cab drivers and their job is done, oh is it that simple? I wonder if Comfort is proud enough of our public transport to bring their VIPs from overseas to try our public transport? Would the LTA show case our public transport to the visitors that are currently having their summit in Singapore? Is there anyone out there that really know what is going on?
(#6)
mbkho
November 22, 2007 Thursday, 08:35 AM
If the government is so "money minded", what do you expect the taxi companies to do? Be civic minded and equitable? NOPE. They will be money minded too. And the cabbies and commuters suffer. That's one reason (money mindedness) I don't live in Spore anymore - and don't intend to as far as possible.
(#7)
lobo_respawned
November 22, 2007 Thursday, 08:58 AM
#6
are there no 'govt' people in the director's board of the taxi companies?
(#8)
prisho75
November 22, 2007 Thursday, 11:28 AM
I am pretty concerned about the possible chain reaction of increasing the flag-down fare for cabs. It is alright if passengers find the cost high and switch to alternative mode like taking buses / MRT.
However, we are also having problems with our public transport (buses, MRT) in terms of frequency already. With the possibility that there might be more commuters taking these public transport, will they make adjustments and increase the no. of buses and MRT trips as well?
(#9)
Dr_ExK
November 22, 2007 Thursday, 03:59 PM
if people spend that much time on the road, there would not be enough time to do other productive things, such as raising a family or giving birth.
(#10)
ghostcom23
November 22, 2007 Thursday, 04:47 PM
actually I don't think taxi operators are making that much money from taxi rentals as they need to pay the capex cost of the taxis, maintenance, depreciation, tax, etc. e.g. I think SMRT is losing money on taxis
taxis in singapore are really too cheap and people should take public transport more, and singapore has a great public transport system!
(#11)
star16888
November 22, 2007 Thursday, 08:41 PM
#10
ghostcom23,
Taxi companies can only justify their existence if they add value to the system. To know whether they add value, it's very simple. Just liberalize taxi licence and let some drivers own their own taxi to compete with the drivers renting from taxi companies. If taxi companies cannot compete with independent taxi drivers, they are just parasites and blood suckers. They should be eliminated.
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