Deep Dive Podcast: Will increasing surcharges kill off demand for metered taxis?
The temporary hike in Changi Airport and Mandai Wildlife Reserve was made permanent from Jul 1.
CNA's weekly news podcast takes a deep dive into issues that people talk about at dining tables and along the office corridors. Hosted by Steven Chia and Crispina Robert.
The taxi industry in Singapore has undergone major shifts since the rise of ride-hailing apps, with passengers swapping standing in line for confirmed rides and flat fees. Are metered taxis still relevant?
Steven Chia and Crispina Robert put the questions to transport economist Walter Theseira and the general secretary of the National Taxi Association, Ban Kum Cheong.
Jump to these key moments:
- 2:01 Ride-hailing killed the taxi model
- 4:48 Surcharges are big incentives
- 10:16 Why taxi rentals are still higher
- 18:15 Improving livelihoods of taxi drivers
Here's an excerpt of the conversation:
Crispina Robert:
In places like Changi (Airport) and some of these tourist destinations, what if there are no taxis when you arrive at your arrival hall? There's a big sign there that says you can just download the Grab app and then you can get a (private-hire car). Do we really need to have taxis waiting for people or can we evolve eventually to a system where everyone who comes into Singapore can simply catch a ride through an app?
Ban Kum Cheong (taxi driver):
It all depends on the passenger's needs. Some have children below 1.35m. They definitely need a taxi.
Steven Chia:
This is a whole other discussion. Why don't taxis need car seats for children and regular cars do?
Crispina:
But his point is that he has to meet different demands of tourists, right? So, for example, maybe elderly who don't have access to an app or don't have data to book (a car)?
Steven:
But then again, a tourist showing up at the airport could go to the counter and there's someone with all the devices to say, "I will book on your behalf." We can have a kind of customer service for those who are new to the country. You don't need taxis literally lining up and waiting.
Walter Theseira:
This is an interesting discussion, because the policy problem we're having today is that the market has already decided that ride-hailing, booking through your app, is the way that most consumers in Singapore want to go. And that's reflected in the fact that the share of all the rides which are actually by metered fare has been going down continuously, and it's probably going to go down further in the future because most of the locals who are still using metered fares, they're actually our older population.
Most of the younger ones will use apps today. And so the problem now becomes, how do we provide enough metered fare service to cater to elderly Singaporeans? If there's no motivation for the drivers to turn on the meter and provide the metered fare service, these older Singaporeans will be standing at the taxi stand and nobody will ever show up.
