Will cabs vanish from city fringe?

STANDING IN LINE: Among the areas likely to be affected are taxi stands in high traffic zones such as Far East Plaza, Shaw House (above) and Tanglin Mall near Orchard Road. -- ST PHOTO: AZIZ HUSSIN
Dec 12, 2007

Some passengers concerned that $3 downtown peak hour surcharge may mean fewer cabs on outskirts of town

By Maria Almenoar & Jessica Jaganathan

IF YOU need to hail a cab on the fringe of downtown, be prepared to wait, a transport expert warned yesterday.

In the wake of a new pricing structure that gives some cabbies a bonus for picking up passengers in the heart of the city, many are likely to skip the outskirts and make a beeline for places like Orchard Road.

Among the areas likely to be affected are taxi stands in high traffic areas such as Far East Plaza, Shaw House and Tanglin Mall near Orchard Road and The Concourse in Beach Road.

National University of Singapore transport researcher and postgraduate student Han Songguang called the new surcharges 'very bad news' for people working or living in these areas just outside downtown.

'I am not sure how taxi companies or LTA will be able to enforce or discourage errant cabbies,' he said on Monday.

The same day, ComfortDelGro announced it will levy a $3 surcharge on passengers who hop into a cab in the downtown area during peak hours - up from $1.

Its fare revision includes higher flag-down rates and metered rates but lower call booking charges during prime hours.

Member of Parliament Ong Kian Min, who is deputy chairman of the Government Parliamentary Committee for Transport, said he is concerned over the downtown surcharges.

Without a gradual scale, drivers will likely head to the city proper, he said.

'It's a choice between $3 or nothing for drivers, so this will definitely influence their driving behaviour. We may head to more problems and complaints, in the end, if taxi drivers do avoid taxi stands along the fringe.'

Comfort - the largest company here, with 65 per cent of the cabs on the road - said the new city surcharge is designed to encourage taxis to pick up passengers in the city centre. Cabbies leave downtown for the suburbs and find little incentive to drive all the way back to pick up new passengers, it said.

While the surcharge may address the problem of too few cabs in the city during peak hours, Comfort acknowledged it may create a shortfall on the outskirts of downtown.

Comfort said it will 'keep a close eye' on cabbies to make sure they do not zip by taxi stands there. But when asked specifically how it will monitor its drivers, the company declined to comment.

Yesterday, only one passenger in 10 who discussed the fare increase with The Straits Times was ready to walk in and pay the city surcharge if left stranded.

The rest, like frequent cab user Carol Lee, would opt to wait or call a cab at the cost of $3.50.

'There's not much difference when you compare a call charge and the new rates, so I would rather call one,' said the 33-year-old bank manager.

Marketing manager Gary Loh agreed.

'I will be prepared to wait 10 minutes tops and if there is still no sign of a cab, I'll call one. I'm too lazy to walk into town,' said the 31-year-old.

SMRT Taxis, Premier and Smart have confirmed they will also raise fares.

Prime Taxis will look to implement new surcharges but will not raise flag-down fares for at least the next three months.

Trans-Cab could not be reached for comment.

mariaa@sph.com.sg

jessicaj@sph.com.sg

Raising fares just one solution

Still more can be done to address our taxi issues
Letter from GABRIEL LOW

Wednesday • December 12, 2007

I feel the taxi-fare increase is a good start to helping taxi drivers earn more while making it easier for passengers to flag taxis in the city. However, I think more could be done to address this issue.

I suggest that taxi drivers not be allowed to change shifts during peak periods to make it easier for commuters to flag taxis.

The Land Transport Authority (LTA) could also waive peak-hour Electronic Road Pricing (ERP) charges for taxis, or charge them a token ERP fee, to encourage taxi drivers to enter ERP zones.

Taxi drivers could be allowed to form cooperatives to own their taxis, subject to their meeting strict maintenance standards.

I am in favour of all moves to improve our taxi service, but we should not simply increase fares without addressing other factors. It is in our economic interests to keep taxi fares competitive and our fleet of taxis operating efficiently.

It is important to strike a balance between keeping taxi fares affordable, taxi companies profitable and ensuring taxis are available when they are needed.

Time for Case to intervene?
Letter from David Soh Poh Huat

The Consumers Association of Singapore should evaluate if the taxi-fare increase is necessary and how it affects commuters throughout the day.

It seems to me that the latest increases are addressing the complaints of those who only take taxis during peak hours.

Given the public feedback, perhaps the authorities could also explain their rationale for approving the fare increases.

A trial period for new fares
Letter from KHOO LIH HAN

I Feel the revised taxi fares and surcharges should be introduced on a trial basis, to see if they result in more taxis entering the city area and help taxi drivers offset rising fuel costs. If these issues are not solved after a period of say, three months, new measures could be tried to solve these issues.

Copyright MediaCorp Press Ltd. All rights reserved.

Higher price for cabs at peak hour, in the city

Tuesday • December 11, 2007
Leong Wee Keat
weekeat@mediacorp.com.sg

THOSE who catch a taxi home from the city each evening, or travel long distances during peak hours, will from Monday bear the brunt of higher fares when they board ComfortDelGro cabs.

The taxi company unveiled its new pricing structure yesterday, designed to address the twin concerns of cabbies' soaring operating costs and the dearth of taxis during peak hours.

Passengers will pay between 10 and 49 per cent more, with not just higher basic fares, but also a tripled city area surcharge and a 35-per-cent peak period premium that replaces the flat charge.

Current booking fees, on the other hand, will go down by 50 cents for prime-time calls, to "better match demand and supply".

The greatest increase will hit trips originating in the city from Mondays to Thursdays, between 8pm and midnight.

An average 9km trip — say, between Raffles Place and Bishan — that now costs about $7.65 will set one back by $11.40.

In announcing its overhaul of its taxi fare structure yesterday, ComfortDelGro said it was "aimed at making taxis more readily available to commuters when they need it most" and "to address the issues facing the taxi industry".

Its fleet of 15,000 — comprising Comfort, CityCab and Yellow-Top taxis — accounts for 65 per cent of the 23,000 cabs on the roads here. The in-depth review took into consideration feedback from the public and taxi associations.

Commuters will, for a short time at least, have the choice of turning to other taxi operators, which have yet to inform the Public Transport Council of plans to raise fares. A two-week notice period is required.

But come the new year, other taxi operators, who have been waiting to see what the market leader had planned, will likely follow suit — if only because they will otherwise lose drivers to ComfortDelGro, say analysts.

Smart Taxis managing director Johnny Harjantho told Today the company, which has about 800 taxis, will "most probably" follow ComfortDelGro's lead in raising fares, but may differ on surcharges.

SMRT, with a 3,000-strong taxi fleet, said it would notify the council about its fare adjustment soon.

It remains to be seen if ComfortDelGro's new pricing structure — with the most comprehensive changes in eight years — will succeed where tweaks last year had failed in solving commuters' woes of "vanishing" taxis.

Not only will the city area peak surcharge go up from $1 to $3, the effective hours will also be extended, to cover Mondays to Saturdays from 5pm to midnight.

And from midnight, the late-night surcharge will take over — in a reversion to the flat 50-per-cent charge on the metered fare. Besides simplifying the current staggered charges, the move will complement the peak city area surcharge and prevent taxis from "hiding", said ComfortDelGro.

But will new problems be spawned? Transport researcher Han Songguang of the National University of Singapore (NUS) warns that the city area surcharge could mean taxis may bypass passengers waiting at the city fringes. "This will be bad news for people working or staying just outside the Central Business District and I am not sure how taxi companies or Land Transport Authority will be able to discourage errant cabbies," he said.

ComfortDelGro said it would work with the LTA to address this potential issue.

Commuters Today spoke to had mixed reactions to the changes. Some believed it would dampen demand for taxis and even put taxi rides beyond the reach of many.

Ms Melissa Kong, 27, who commutes by cab from her Orchard Road workplace, wondered why consumers had to bear the cost. "What the taxi drivers are doing, such as hiding from passengers and only taking call bookings, is wrong in the first place."

Bukit Panjang resident Jimmy Lim, 32, who works in the city, said: "I will evaluate my needs more carefully and whether I have exhausted all means before getting a cab."

NUS don Lee Der-Horng thinks other operators may not have the resources to copy all of ComfortDelGro's moves, but they could try to be "creative". "I would further lower the booking surcharge to attract passengers and my drivers would also have less empty cruising time," he said. — With additional reporting by Ng Jing Yng

Copyright MediaCorp Press Ltd. All rights reserved.

德士车资下星期一起上调

omy.sg

康福德高（ComfortDelgro）的德士车资将从下星期一（17日）起调高，繁忙时段的新收费最高上调将近50%，非繁忙时段的大部分收费将上调10%。

康福德高表示彻底改革德士车资结构，为的是更好地平衡不同时段的德士供求。康福德高旗下的德士包括Comfort、CityCab和Yellow-Top。

市区附加费（city area surcharge）将从$1大幅度调高到$3，收费时段也将延长，改成每星期一到星期六的5pm到12 midnight。

康福德高解释，这么做是为了鼓励更多德士司机在繁忙时段到市区载客。空车进入市区但无法在15 mins内载到乘客的司机，将获得康福德高提供的ERP回扣。

午夜附加费为车资的50%午夜附加费（late night surcharge）也将恢复以往的收费方式，从12 midnight到6am，一律为德士车资的50%。

7am到9.30am（星期一到星期五）以及5pm到8pm（星期一到星期六）的繁忙时段附加费（peak period surcharge），将不再是$2，改为德士车资的35%。

普通德士的起程车资将从$2.50调高到$2.80；Hyundai Sonata德士则从$2.70调高到$3；豪华马赛地德士从$2.80调高到$3.20。

车程距离的收费目前是首10km的每210m收10￠，超过10km则每175m收10￠。下星期一起改为首10km每385m收20￠，过后的每330m收20￠。

德士以后每等候45sec将收费20￠，目前是每等候25sec收10￠。

预料其他德士公司也将涨价 康福德高宣布调整德士车资结构，预料其他德士公司不久后也将跟进。

拥有大约3,000辆德士的SMRT告诉《联合早报》，很快将通知公共交通理事会（PTC）有关调整车资的事宜。

其他业者则表示康福德高的新车资结构太过复杂，需要时间仔细研究，才决定是否进行同样的调整。

Cab surcharge raised to meet demand in the city

Dec 11, 2007
By Maria Almenoar

TAXI fares will go up from Monday and people who want to catch a cab in the city during evening peak hours will see their fares rise the most.

They will pay between 18 per cent and 49 per cent more for a taxi ride home from the city from 5pm to midnight. Heading home to Ang Mo Kio from Orchard Road during these peak hours will cost about $14.35, up from $10.65 now.

Travel during off-peak hours, which will affect the bulk of passengers riding in the 23,000 cabs here, will go up by 10 per cent, said Singapore's biggest cab company ComfortDelGro, which announced its new fare structure yesterday.

It is raising flag-down rates by 30 cents to $2.80. Surcharges for peak period and late-night travel have also been adjusted.

Three of the other five cab companies say they will follow ComfortDelGro's lead to raise flag-down rates and up the distance- and time-based charges.

Only one charge is going down - the prime-time call booking fee will be lowered from $4 to $3.50.

Trans-Cab could not comment by press time while Prime Taxis said it will not raise flag-down rates for at least another three months.

One measure that drew attention was ComfortDelGro's move to raise the city surcharge as a way of ensuring its supply of 15,000 taxis better matches the demand for cabs, where and when they are wanted most.

Commuters will have to pay $3 for a cab in the city between 5pm and midnight from Monday to Saturday, up from $1 now.

ComfortDelGro said the higher surcharge will address the No. 1 complaint of commuters - long waiting times for cabs in the city in the evening.

Its spokesman Tammy Tan said: 'One reason for this is that many taxis leave the city centre for the suburbs and drivers find little incentive to drive all the way back to the city to pick up new passengers.'

The company dangled one more incentive to lure cabbies into the city area: It will refund cabbies the Electronic Road Pricing charges payable to get into the city - between 50 cents and $2 now - if they do not get a passenger within 15 minutes of passing the gantry.

Cabbies welcomed the news of the higher fares, especially as ComfortDelGro also said it is not raising rentals and will continue with its diesel subsidies. Cabbies pay between $70 and $125 in rent a day regardless of how much they earn.

Cabby Tony Pang, 58, said: 'Passengers will stay away initially - it's a knee-jerk reaction. But the increased fares will help us drivers a bit.'

Commuters like insurance agent Kenneth Tan, 27, will think twice about taking a cab now. 'It's going to be more costly but if I need to save time or get out of the rain, I might still take one.'

mariaa@sph.com.sg

Taxi fares to rise up to 49% from Dec 17 with Comfort's 'overhaul'

ST Dec 10, 2007

By Clarence Chang & Tania Tan

COME next Monday, prepare to fork out as much as 49 per cent more for a cab ride, now that ComfortDelgro, Singapore's biggest player, has unveiled its 'overhaul' of the current taxi fare structure. This follows what it says was an 'in-depth review' of the taxi industry to address commuters' concerns, simplify the fare structure and encourage call bookings 'to better match the demand and supply of taxis'.

City Area Surcharge - Up

First, to incentivise more cabbies to ply the Central Business District during peak hours, the city area surcharge, which is now $1, will be raised to $3 between 5pm and midnight from Mondays to Saturdays.

The lack of taxis in the city at the end of office hours on weekday evenings is a frequent complaint from passengers, the company noted.

For drivers who are afraid of paying Electronic Road Pricing charges to enter the city and risk not getting a passenger, ComfortDelgro says it will even pay an 'ERP rebate' to cabbies who cannot land a passenger within 15 minutes of entering an ERP zone.

Late Night Surcharge - Up

The late night surcharge between 12am and 5:59am daily will be revised back to 50 per cent of the metred fare - instead of the staggered 10 to 50 per cent surcharges now in effect.

Will this revive the old problem of 'disappearing taxis' between 11pm to midnight? The company says no, 'given that the City Area Surcharge will be in force right till midnight, giving little reason for taxi drivers in the city to 'hide'.'

Peak Period Surcharge - Up

Instead of the standard $2 peak period surcharge now in effect between 7am and 9.30am on weekdays and 5pm to 8pm from Mondays to Saturdays, passengers will have to pay an added 35 per cent of their metered fare during those hours.

A detailed breakdown of this extra 'premium fare' will be shown on each receipt 'to ensure transparency', the company says.

Flag down, distance rate, waiting time - Up

As hinted earlier, the flag down fare will be raised by 30 cents from $2.50 to $2.80 for the first kilometre.

But the distance rate and waiting time will also be adjusted to 'more accurately reflect the cost of travel', it added. So instead of upping fares by 10 cents for each set distance or waiitng time, this will soon go up by 20 cents each time.

Specifically, every 385 metres for the second to 10th kilometres, and every 330 metres above 10 kilometres.

The waiting time will also be raised from the current 10 cents for every 25 seconds to 20 cents for every 45 seconds.

Call Booking Fee - Down

Bucking the trend of the increases, call booking fees will be cut from $4 to $3.50 during prime time hours, which are 7am to 9.30am and 5pm to 11pm on weekdays.

It stays at $2.50 for all other times.

10 to 49 per cent more in overall fares

Under the new pricing structure, ComfortDelgro says, the bulk of its passengers who travel during off-peak hours will pay 10 per cent more in fares.

All other passengers will be expected to pay between 18 per cent and 49 per cent more.

The biggest jump in fares will affect those who take cabs out of the city from Mondays to Thursdays, between 8pm and midnight. Instead of $7.65 currently for an average 9km trip, they'll have to fork out $11.40.

With all these changes factored in, ComfortDelgro explained, peak-hour cab fares in Singapore are about the same as Hong Kong's but still only half that of Sydney's.

Local fares are also only about a quarter of London's.

'Better match supply and demand'

Refering specifically to the current difficulty of getting cabs in the city during peak hours, ComfortDelgro's CEO (Taxi Business), Mr Yang Ban Seng, said: 'We think this fare revamp will better match supply and demand of taxis. Our aim is to try and ensure that more taxis will go to areas where they are needed most and at the times they are wanted most.'

Mr Nah Tua Bah, president of the Comfort Taxi Operators' Association, added: "The higher city area surcharge will act an an incentive for drivers to make that trip back into town."

Welcoming the increases, a joint statement by six taxi operators' associations called the latest fare adjustments 'fair and timely'.

The associations said cab fares should 'reflect the operating cost of the taxi business' and that the primary consideration should be the 'income stability' of drivers.

The group urged other taxi companies to follow ComfortDelgro's lead and also adjust their fares 'as soon as possible'.


Copyright © 2007 Singapore Press Holdings.

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