SINGAPORE: Amid growing competition, Singapore's second-largest taxi company Trans-cab on Wednesday (Dec 28) announced rental rate cuts for cabbies who operate alone.
The new rates take effect on Jan 1, 2017 and apply to both new and existing drivers.
Depending on the age of the vehicle, it could cost as little as S$59.50 (before GST) to rent a Toyota Wish cab, down from the current rate of S$90 per day.
Renault cab renters will pay S$88.50 a day - down from the present starting rate of between S$114 and S$125.
Rent for the company's Chevrolet models will be cut to between S$66 and S$72, down from the present rate of between S$94 and S$101.
The firm owns a fleet of about 4,500 taxis, of which about 4,000 are currently on the road.
Trans-cab general manager Jasmine Tan said taxi drivers have told the company that third-party booking apps Uber and Grab have taken their toll on the drivers' earnings.
“It has affected their income and overhead cost,” she said. “That's why we decided to reduce the rental to help the one-man operation drivers, to help them lighten their burden."
Trans-cab also said it was also the right time to move as the Land Transport Authority recently announced it would relax taxi availability standards. Come January, cab drivers will no longer have to clock a minimum daily mileage of 250km and meet availability requirements during shoulder peak periods.
Channel NewsAsia understands that SMRT also offered a limited promotion for its new taxi drivers. They received free rental for two weeks and a 50 per cent discount on rental for the next five and a half months. The promotion ended on Dec 23.