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ComfortDelGro raises taxi fares
By Wong Siew Ying, Channel NewsAsia | Posted: 03 July 2006 1323 hrs

 
 
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SINGAPORE : Starting next Monday, a cab ride in any of ComfortDelgro's fleet of taxis will cost more.

The company, which operates Comfort, CityCab and Yellow-Top taxis, will be increasing the flag down fare by 10 cents and the peak period surcharge by a dollar.

This has caused some concern among taxi drivers.

Fuel prices have increased over the years: ComfortDelgro says diesel prices rose 30 percent this year compared to 2005.

This has eaten into the income of its drivers and the company is making its first fare adjustment in 12 years to help its 32,000 drivers.

So come next week, the new flag down rate for its cabs is $2.50 and $2.80 for its Mercedes cabs.

Besides raising the flag down fare and the peak hour surcharge to $2, ComfortDelgro is also making distance-related adjustment.

Trips less than 10 kilometres will be charged at 10 cents for every 210 metres travelled, compared to 225 metres currently.

For trips above 10 kilometres, the charge will be 10 cents per 175 metres, compared to 200 metres now.

With the change, commuters will be clocking less mileage for every 10 cents they pay.

Calculations showed that factoring in all the increase, a 10-kilometre ride during a peak period will cost about 14 to 18 percent more than previously.

Foo Peow Poon, a cabby of 21 years, says the revision will help drivers a little.

But he is against the new $2 peak period surcharge.

He said: "If you raise the surcharge to 2 dollars, plus CBD is 3 dollars, plus the fare which is 2.50, I think you will scare most of the commuters, and most of our commuters who support the public transport are middle class and below."

But others prefer a higher flag down fare.

Jorge Chew, Comfort Cab Driver, said: "People may select to take public transport rather than taxi. For us to cover rental everything, it's based on peak hours, but if during peak hour, less customers taking taxis, that will affect us, even though the flag down fee is $2.50, it doesn't help much because we rely on the peak hour surcharge."

Gan Poh Kiam, Comfort Cab Driver, said: "Right now, not easy to get passengers. The best thing is to reduce ERP, then our business will pick up."

While some commuters are sympathetic about the plight of cab drivers, others say the fare hike will hit their wallets.

"Instead of taking taxis, in future I'll take public transportation to...minimise expenses," said one passenger.

"If let's say, prices of taxi fare is going up, then definitely they have to give us better services, like telling us which routes they're going through and advise on a better one," said another.

Responding, ComfortDelgro says service standard should be de-linked from fare increase.

The company added that it is constantly looking to improve its service and this latest fare revision is pegged to escalating fuel prices.

The Taxi Operators' Associations support the fare revision, calling it timely and fair.

They believe the move will help taxi companies cope with the higher cost of operation and also improve the demand and supply situation for the commuters.

In a written reply, the second largest taxi operator, SMRT Taxis say it will study the changes made by Comfort Delgro, and will make adjustments where necessary.

But it adds that the changes could attract more entrants into the taxi industry and spur drivers to provide better service. - CNA/ch

 

 



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