Tan Kin Lian - Perspectives
Inexpensive taxi service
I suggest that COEs for taxis be free, and that a larger quota be provided. This will allow the taxi fares to be reduced and encourage some people to use taxis instead of owning a private car.
The fare for the taxi service can be reduced by:
a) Issuing many licenses without COE. With more taxis, the fare will be lower.
b) Paint the taxis with a special color, so that it cannot be used as a private car.
c) The taxis should operate on an app, to make it unnecessary for the taxis to ply the street to look for passengers.
I suggest that the private hire platforms, such as Grab, should be subject to the same regulations on fares and terms of service as taxis.
This approach has the following advantages:
a) Create jobs for taxi drivers
b) Reduce the demand for private cars
c) Save on parking space.
d) Allow the passenger to relax on the ride, instead of concentrating on driving.
Since public transport is subsidized, it is logical for taxis to be subsidized (i.e. no COE), so that it becomes more attractive than owning a private car.
Currently, the taxi fare is $4.60 plus $0.65 per km. A trip of 10 km will cost $11.10. I suggest that the fares for the taxi ride be reduced by about 30% from the current level.
Some people will still need a private car for other reasons, but others may find that the inexpensive taxis. Overall, this arrangement will lead to a more efficient transport service.
Tan Kin Lian
Additional information.
Since 2012, taxi operators in Singapore generally do not participate in the COE bidding process for new taxis. Instead, they:
- Draw from a pool of Category E (Open) COEs and pay the prevailing quota premium for Category A.
- Are subject to taxi availability standards, which limit the number of new taxis they can add to their fleet each year.
This system was implemented to:
- Control the growth of the taxi fleet: By limiting the number of new taxis available, the government can help to ensure that there are enough taxis to meet demand without causing traffic congestion.
- Reduce the impact of taxi companies on COE prices: Prior to 2012, taxi companies were bidding for COEs in the open market, which was driving up prices for everyone.
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