SINGAPORE — The Land Transport Authority (LTA) will look into the supply of taxi and ride-hailing services, as part of a review of the point-to-point industry structure and regulatory framework.

There has been increased demand for such services in recent years – from about 517,000 daily trips in November 2020 to 613,000 daily trips in July this year.

The review will focus on three objectives, including the availability and reliability of rides.

“We want to improve the stability of point-to-point supply over the course of the day, such as during late-night hours where there are some shortages in the supply of rides,” said LTA.

“As point-to-point services become more important in the daily lives of Singaporeans, operators must be able to provide these services with minimal disruptions and downtime,” it added.

The third objective is to ensure that such services cater to the needs of commuter groups such as wheelchair users and families with young children.

Since the implementation of the current licensing framework for taxi and ride-hailing operators in October 2020, the point-to-point sector has evolved significantly, said LTA.

It cited a growing preference for ride-hailing services among commuters and drivers due to its “matching efficiency and ease of booking through mobile applications”.

This decrease in demand for traditional taxi services has resulted in fewer taxis plying the streets.

“At the same time, taxis retain an important role in serving high-demand locations such as Changi Airport, tourists and commuters who are less technologically savvy,” said LTA.

Passengers’ satisfaction with taxi and private-hire car services fell in 2022, with the score for wait time falling the most, according to the Public Transport Council’s point-to-point transport services customer satisfaction survey findings released in February.

LTA has started discussions with its partners – taxi and ride-hailing operators, the National Taxi Association, and the National Private Hire Vehicles Association.

“Besides ensuring availability, resilience and inclusivity of point-to-point services, tripartite partners also discussed the adoption of cleaner energy vehicles, and the importance of encouraging gracious behaviour among drivers and commuters,” said LTA.

“Where there are trade-offs to be made, we strive to balance the interests of key stakeholders such as operators, drivers and commuters.”

LTA said it would reach out to different commuter groups to hear their views. It plans to complete the review by the second quarter of 2024. CNA

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