Ministry of Transport Give taxi companies level playing field
The "success" of Uber and Grab has, in large part, been due to the generous discounts, rebates and incentives that the companies have given to drivers and passengers (Time for ComfortDelGro to up its game, by Mr Liu Fook Thim, June 11).

This, of course, is thanks to their seemingly endless war chest - from investors pumping in billions of dollars to support start-ups that shake up existing business models, all in the name of "technological disruption".

What is important to note is that private-hire vehicles are not taxis.

Taxi companies like ComfortDelGro are subject to the Public Transport Council Act, where rigorous steps have been in place to ensure the safety of passengers and the accountability of transport providers.

With fewer rules to follow, lower operating costs and higher returns, private-hire vehicles have become the easier and preferred route for anyone with a driver's licence and a car to earn their keep.

Given a higher take-up rate, private-hire vehicles now run in direct competition with taxi companies, which have a tough fight against these players, given the regulatory constraints.

Taxi companies and cabbies around the world have to grapple with the same issue as it is not easy to wage war with opponents who operate with a massive arsenal of funds while not tightly bound by the law.

Listed companies, unlike start-ups, are unable to do Series X fund raising among investors based on projected future revenues even if they are operating at a loss.

How can taxi companies compete with private-hire businesses without a level playing field ?

Chen Shaowei

Source: https://www.straitstimes.com/forum/letters-in-print/give-taxi-companies-level-playing-field

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