Tuesday / December 4, 2007
Why not cut rental charges?
Surely, taxi companies can trim their profit margins
Surely, taxi companies can trim their profit margins
Letter from LESLIE LIM
Your report "Cabbies feel pinch, seek fare hike" (Dec 3) left me disappointed with the Taxi Operators' Association (TOA) and taxi companies.
The TOA had said that the takings of drivers had fallen by about $800 a month due to the increase in Electronic Road Pricing (ERP) and diesel and proposed raising fares. The companies should instead consider reducing the daily taxi rental.
A family friend has been driving a taxi for 15 years and supports a family of four.
He drives 14 to 16 hours a day and brings home between $2,000 to $2,500 per month, after deducting his daily expenses. The bulk of his earnings goes to paying the daily rental fee of $90. The increase in operating costs will reduce his take-home pay by at least $400 per month.
Does this mean that he now has to drive 20 hours a day just to make ends meet?
I feel it is time to look into how taxi companies are helping their drivers and how high the companies' profit margins are.
Several ways to improve the situation and help cabbies
Letter from TAN KIN LIAN
Letter from TAN KIN LIAN
Some taxi drivers are reluctant to drive through areas with ERP gantries in case they are unable to find passengers and recover their ERP charges. This makes it difficult to flag taxis in some parts of Singapore.
I suggest the following measures to make our taxi system more efficient and help taxi drivers cope with increased costs:
- Increase fares to compensate for higher operating costs.
- Reduce taxi-booking fees, to encourage commuters to book a taxi.
- Charge taxi drivers a flat daily fee, instead of paying ERP charges.
Reveal profit margins before considering fare increase
- Increase fares to compensate for higher operating costs.
- Reduce taxi-booking fees, to encourage commuters to book a taxi.
- Charge taxi drivers a flat daily fee, instead of paying ERP charges.
Reveal profit margins before considering fare increase
Letter from DAVID SOH POH HUAT
I hope the authorities reveal the profit margins of each taxi company before any decision is made to raise taxi fares.
The often-used argument is that our fares are among the "cheapest" in the world. However, instead of comparing ourselves to other countries, we should look at the impact of the increased fares on Singaporeans.
If taxi companies are making hefty profits, perhaps they can reduce taxi rental or absorb GST-related increases in operating costs?
I hope the authorities reveal the profit margins of each taxi company before any decision is made to raise taxi fares.
The often-used argument is that our fares are among the "cheapest" in the world. However, instead of comparing ourselves to other countries, we should look at the impact of the increased fares on Singaporeans.
If taxi companies are making hefty profits, perhaps they can reduce taxi rental or absorb GST-related increases in operating costs?
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