Third-party ride-booking apps: How they are driving change in the taxi trade
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Taxis at the Lucky Plaza taxi stand.
PHOTO: LIM YAOHUI FOR THE STRAITS TIMES
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The proliferation of third-party ride-booking apps is transforming the industry for commuters, operators and cabbies. The Sunday Times looks at what it means for each group as the Government reviews regulations to level the playing field between newcomers and traditional taxi operators.
Commuters: Easier, faster, often cheaper to snag a ride
For 22-year-old flight attendant Katherine Solano, taking an Uber ride home from the airport is now her preferred mode of car travel as it costs less than a cab. Uber charges $1.50 extra for an airport pick-up, while surcharges for mainstream taxi operators, such as ComfortDelGro, range from $3 to $5.
Ms Solano is part of a growing number of people who prefer such third-party services to booking cabs through taxi companies.
GrabTaxi: Over 22,000 cabbies, drivers in network
While he declined to give exact numbers, Mr Lim Kell Jay, regional head of GrabCar, told The Sunday Times that "we believe we are bigger than the two largest taxi companies in Singapore combined".
As of September, the two biggest taxi operators are ComfortDelGro, which has 17,026 cabs under its Comfort and CityCab brands, and Trans-Cab with 4,974.
Private-hire drivers: More on the road, fewer perks
Flexible hours, lower car rental costs and monetary incentives are several reasons drivers chose to join UberX and GrabCar instead of a taxi company.
But with an influx of newer drivers making it tougher to get passengers and firms scaling back incentives, private-hire drivers said they need to "strategise" to maintain their earnings .
"There are now too many drivers and not enough riders," said Mr James Fang, 30, who has worked for both UberX and GrabCar.
Taxi companies: Raising their game to fight back
With the growing prevalence of third-party booking apps and private hire cars, taxi companies are finding new ways to fight the competition - from lucky draws for their cabbies to partnering with app providers.
Industry observers said that, as more commuters turn to the likes of GrabTaxi and Uber, taxi operators are likely seeing their own share of bookings fall.
While the operators declined to reveal figures, taxi drivers who spoke to The Sunday Times said they are now receiving fewer booking calls from their companies.
Cabbies: Easier to find passengers, less time wasted
Ride-booking apps have made it easier for taxi drivers to find passengers, and cut the time spent burning diesel while cruising empty.
But competition from private chauffeur cars - which can be booked under some of the apps like Uber and GrabTaxi - are hitting certain groups of taxi drivers hard, especially relief drivers who work the graveyard shift.
An industry source, who declined to be named, estimates that business for such drivers has fallen by as much as a third.
The Straits Times senior transport correspondent Christopher Tan also discusses with digital news editor Ernest Luis what lies at the crux of the third-party taxi apps debate - on whether it is about having more consumer choices, the levelling of the playing field, and the possibility of regulation.
