ComfortDelGro taxi flagdown rates to go up by 50 cents; new weekend peak-hour surcharge from Dec 13

SINGAPORE: Singapore's largest taxi operator ComfortDelGro said on Wednesday (Dec 6) it will increase its flagdown fare and other surcharges to help cabbies defray higher operating costs due to rising fuel prices, high inflation and the impending Goods and Services Tax (GST) hike.

ComfortDelGro’s fleet, excluding limousine taxis, will see a S$0.50 (US$0.37) increase in flagdown fares and a S$0.01 increase for distances and waiting times to S$0.26.

“With this adjustment, the estimated fare for a 10km off-peak normal taxi trip is estimated to increase by 6.8 per cent or S$0.94 from S$13.80 to S$14.74,” said Singapore’s largest taxi operator, which is listed on the Singapore Exchange.

Flagdown fares for limousine taxis will remain the same, but distances and waiting time fares will be increased from S$0.35 to S$0.36.

The fare hike will apply to all metered fare trips, including metered fare bookings made through the CDG Zig app and other ride-hailing platforms.

The new fares will come into effect at 6am on Dec 13.

ComfortDelGro also said it will be extending the evening peak hour surcharge for all taxis by one hour to cover the period from 5pm to 11.59pm, effective Monday through Sunday, including public holidays. The current peak hour period starts at 6pm.

A new peak hour surcharge will be implemented from 10am to 1.59pm on Saturdays, Sundays and public holidays.

In response to queries from CNA, the operator said that the demand for taxis during those hours is “much stronger relative to off-peak hours and as high as commuting peak hours on weekdays”.

The peak hour surcharge amounts to 25 per cent of the metered fare.

Trans-cab will follow suit and implement the new weekend peak-hour surcharge and extension of the evening peak-hour surcharge by one hour, according to an update on its website.

The same weekend peak-hour surcharge and extension of the evening peak-hour surcharge by one hour will also apply to Strides Premier and Prime Taxi rides, following updates to their websites. The fare revisions by all three companies will take place from Dec 13.

In response to CNA's queries, Strides Premier's deputy CEO Clarence Lew said it is revising the surcharge for peak periods to "align with other taxi operators".

"Meanwhile, we are monitoring the situation closely regarding the adjustments of flag-down fares and time-based charges made by other taxi operators," he added.

ComfortDelGro increased its flagdown fares in March last year, the first fare adjustment in a decade. Earlier this year, the company introduced a platform fee for rides booked via its CDG Zig app, keeping in line with charges by other ride-hailing platforms in Singapore.

CEO of ComfortDelGro’s taxi business Tommy Tan said on Wednesday that the earnings of its cab drivers had been impacted by the COVID-19 pandemic, followed by higher operating costs due to increasing fuel prices and high inflation.

"This carefully considered move to update our fare structure is necessary. It ensures that our cabbies receive fair earnings with the rising cost of operations," he said.

"As we analyse taxi demand patterns, there is also a need to review the evening peak hours and introduce weekend peak hour surcharge to ensure adequate taxi supply to meet increased commuter needs during the peak hours."

IMPENDING GST INCREASE A CONCERN

The National Taxi Association (NTA) - which ComfortDelGro consulted before proposing the recent fare changes - expressed its support for the fare adjustment, acknowledging the challenges faced by taxi drivers due to rising costs.

"The rise in the fare adjustment is important for our taxi drivers who are also struggling with higher cost of living and operating cost due to higher fuel prices," said NTA adviser Yeo Wan Ling.

The impending increase in GST to 9 per cent from Jan 1, 2024, is also an additional cost on their operations as it impacts their rental, food and parking expenses among others, she added.

"As such, the fare increase will translate into higher take-home pay for taxi drivers to better support their families."

ComfortDelGro said on Wednesday it has provided rental waivers since the COVID-19 pandemic in April 2020 to help support its cabbies. The firm currently provides a 10 per cent rental waiver, with taxi driver Raymond Ong hopeful the latest fare adjustment can help to defray costs.

"In recent years, the rising cost of living and operational expenses have eaten into cabbies’ earnings," he said. "The impending GST increase in 2024 also adds to my concerns and worries.

"This welcome adjustment not only provides timely relief from the impact of the GST hike but also serves as a much-needed measure to support cabbies in improving our earnings and make ends meet."

ComfortDelgro operates more than 8,900 taxis under the Comfort and CityCab brands, making up about 60 per cent of Singapore's taxi population. 

ComfortDelGro shares closed at S$1.34, up by about 3.1 per cent, on Wednesday.