Strict taxi rules to be tweaked as cabbies seek support: analysts

To level the playing field with Uber, Grab.

Regulators may loosen strict taxi operating standards in order to help cab drivers compete better with private hire car drivers, according to a report by OCBC.

OCBC noted that while the government has taken steps to regulate private-hire car services, taxi drivers are still at a disadvantage in terms of fixed fare prices and stringent availability standards.

For instance, private hire car service providers can adjust pricing according to market demand and supply, as well as adjust base fares. However, traditional taxi operators are not allowed to do so.

Meanwhile, traditional operators also have to grapple with strict availability standards such as the minimum daily mileage rule, which is not applicable for private hire car drivers.

“While taxi pricing are largely unregulated, the base fares are regulated and required to be standardized across all the different taxi operators in Singapore. Hence, we do not rule out the possibility of further loosening
of existing strict standards and policies to narrow the level the playing field between traditional taxi business model and private hire car business model,” OCBC said.