Mixed views on whether taxi fares should come down
By Asha Popatlal/ Hetty Musfirah, Channel Newsasia | Posted: 20 February 2009 2220 hrs

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SINGAPORE: Taxi drivers are having tough times as a result of the economic downturn. And the impending cut in public transport fares has some of them even more worried.

One taxi driver said: "(We are) definitely affected, because everyone will take bus and train, which are cheaper, taxis (are) so expensive."

A second said: "If the buses cut their fares and the other agencies cut their fares, we also want our fares to be cut."

MPs like Lim Biow Chuan and Cynthia Phua have said with people less willing to hop into a cab now, fares should follow the market.

Ong Kian Min, the vice-chairman of the Government Parliamentary Committee for Transport, said taxi driver associations need to work as a group to engage their companies.

In Singapore, the taxi industry is deregulated and fares are set by taxi companies.

President of CityCab Operators' Association, Robin Ng, said: "If there are any fare cuts, that will be a direct hit on our drivers' income. We understand that our company is working with corporate clients to give away taxi vouchers. This is another way to help our drivers to increase demand."

President of Premier Taxi Operators' Association, Foo Chi Yong, said: "We are appealing to the companies not to increase the supply of taxis anymore. So if the company continues to increase the supply of taxis, it will definitely affect the drivers."

But for taxi drivers, the competition may well get more intense, as the number of taxi licences issued has been on the rise. It has increased 43 per cent over a four-month period from last September.

Industry insiders say, historically, more people tend to turn towards taxi driving when the economic situation worsens. But during such times, demand for cabs may not be strong.

Latest figures from the Land Transport Authority showed that while numbers have been creeping up slowly since the economic downturn, the average daily taxi ridership fell 5.4 per cent last December from the previous year.

A member of the public said: "For consumers, we have a wider option, so let's say in case of emergency, I will take a taxi."

TransCab said it is reviewing the situation and is in discussions with the union.

Prime Taxis, which has about 500 cabs on the road, said it will look at how the big companies are reacting.

Comfort DelGro, the largest player with more than 15,000 cabs, said the company never comments on fares until it has an announcement to make.

- CNA/yt