ST Dec 12, 2007
THE revised taxi fare structure decided by ComfortDelGro, as the largest operator, will set the template for an essential city service for at least a number of years. The test is whether the aggregate increase in charges, weighted in favour of trips from the city centre, will make the service more dependable all round. It may turn out that Comfort as the market leader has missed an opportunity to make a bold change to its fare structure that will deliver a service that is reliable and fuss-free for commuters, while also enabling cabbies to enjoy an income level commensurate with the labour and time expended.
The effect of the latest changes remains to be seen. This paper has advocated a big-bang approach by raising the flagdown rate steeply, to a range of between $7 and $10. The trade-off would be the abolition of call booking charges and all surcharges, except the airport charge. Metered charges would be up front and transparent, and cabbies will have no reason to go only where they wish. In our view, the proposed increases seem unlikely to make taxis more readily available. Neither would they dissuade cabbies from aberrant behaviour, such as refusing passengers and preferring to wait for prized call bookings. First, the 30-cent increase in the flagdown rate is too small, although the time- and distance-based extra charges are appropriate. Second, the new fare scheme retains not only the already complex array of surcharges but adds another layer of confusion with percentages of peak-period meter charges. Surcharges are the bane of commuters and taxi drivers. They leave riders flummoxed. Some mistakenly think they have been cheated. They are also the prime cause of abuse by some cabbies. The market will judge if the latest revisions to fares address these concerns. The Land Transport Authority, which has a wider remit in promoting smooth- flowing traffic and encouraging the use of public transport, should conduct an independent evaluation after six months, to decide if the changes meet the needs of commuters, cabbies and taxi companies.
A commendable feature of Comfort's announcement is that it says it will not raise the hire rental for its self-employed cabbies or reduce the diesel subsidy. Disturbingly, it does not say for how long. This commitment should be honoured, and not just for a brief 'introductory' period. While commuters should bear some of the burden of rising fuel and operating costs, taxi operators can and should share the load too, and look for economies elsewhere, as all service providers facing competitive pressures are being pressed to do.
Copyright © 2007 Singapore Press Holdings.
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