Two-shift taxi trips grow after nearly three-year slump

Taxi rides for two-shift taxis rose for the third month in January at 3.2%.

Things are looking up for the Singapore taxi industry after it had faced intense competition from the private hire counterparts in recent years, analysis from UOB Kay Hian revealed.

Data from the Land Transport Authority (LTA) revealed that the average number of taxi rides for two-shift taxis has seen a slight improvement in recent months at +0.4% YoY in November 2018, +1.2% YoY in December 2018, and +3.2% YoY in January 2019 after a long slump. The last positive growth rate was recorded in April 2016.

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Moreover, the LTA’s proposed changes released at the start of 2019 - prohibiting driver exclusivity and licensing for ride-hail services - may limit or even reduce the development of the private hire industry. “Note that there are no current uniform regulations that apply to operators of ride hail services, compared to that for taxi operators, such as service quality in ride booking, passenger’s waiting time and driver’s conduct,” said UOBKH analyst Lucas Teng.

According to the analyst, the implementation of standards may further deter private hire drivers. “This is due in part to the reduction of driver incentives provided by operators such as Grab and GOJEK, making it unlikely for operators to provide further rewards for compliance. Also, note that almost half of all private hire drivers had failed to attain their vocational licences in July 2018,” he said.

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