Freelance drivers boost transport business

There are 1.6 times more private cars on the road than taxis.

Transport businesses in Singapore are being shaped by its growing gig-centred economy, research from Maybank Kim Eng revealed. These include food delivery, postal, e-commerce, and car rentals.

Food delivery services like Foodpanda saw its delivery fleet grow to more than 2,500 riders in 2016, with 90% comprised of freelancers.

Another growing player, grocery retailer honestbee, has added 10,000 jobs for freelancers that will do the shopping and delivery for customers.

Meanwhile, postal and delivery services are also boosted by e-commerce, especially with the entry of Amazon Prime Now in Singapore this year.

Air cargo at the Changi Airport also picked up pace since Q4 in 2015 and is growing at a rate not seen since 2010.

"In particular, air cargo discharged may be a proxy for goods that are delivered into Singapore, and this has been rising to reach a historical high in Mar 2017," Maybank Kim Eng said.

The gig economy’s growing presence was also felt in the land transport sector, particularly in the private car hire firms. Citing data from Grab, Maybank Kim Eng said 20-30% of its drivers are Millennials or those who belong to age group below 30.

There is also a growing opportunity for freelance drivers with data from Land Transport Authority showing that the number of private-hire cars surged to 42,800 as of May 2017 This is 1.6 times more than the number of taxis. Moreover, 21,900 cars were converted to private-hire cars in 2016.