SINGAPORE: The Land Transport Authority (LTA) announced on Wednesday (April 2) that GrabCab has been issued a licence to operate a street-hail service and given a three-year grace period to gradually enlarge its fleet to meet the minimum requirement of 800 taxis. This will make GrabCab the sixth taxi operator in Singapore.
GrabCab is a sister company of Grab Rentals and GrabCar, both holding licences to run ride-hail and car-pool services.
The newly-acquired street-hail licence will begin on April 9 and be in force for 10 years.
In a statement to Channel News Asia, LTA said that GrabCab’s entry into the street-hail segment takes the total number of taxi operators in the city-state to six, thereby offering travellers and drivers more options, and is projected to improve the supply of taxis.
Currently, the other taxi operators are CityCab, CDG, Prime, Strides and Trans-Cab.
As part of the licensing conditions, GrabCab must fulfil requirements like having adequate boot space to transport a folded wheelchair or baggage.
Its street-hail services must follow the same taxi cost structure mechanisms as other street-hail operators, said LTA, and the price of its services must be conspicuously shown so that commuters are aware of the fare charges.
It must also ensure that its taxis are identifiable without difficulty by street-hail clients. Therefore, its vehicles must have visible rooftop signage and a distinctive livery.
What competitors say of GrabCab’s entry
In a recent report in The Straits Times, ComfortDelGro, Singapore’s biggest taxi business, candidly said that competition is a normal part of market forces. The company aims to continue building up its ecosystem, enhancing benefit packages for drivers, and making sure that its operational strategies suit current conditions so that it can remain a leading taxi provider in Singapore.
Prime Taxi’s chairman, Mr Neo Nam Heng, said many taxi drivers who join new companies like GrabCab are expected to come from current operators, so the number of cab drivers won’t increase significantly.
Ms Jasmine Tan, general manager of Trans-Cab, thinks it’s premature to say anything about the possible effect of GrabCab’s entry into the street-hail market. However, she believes that eventually, cab drivers will want viable taxi rental rates. Therefore, it seems Trans-Cab will focus on its rental rates so as not to be beaten by GrabCab.
Mixed reactions from passengers
Mr Nigel Yong is hoping that the increased competition following GrabCab’s entry would provisionally push down taxi fares.
On the other hand, physiotherapist Lee Hao Nam is afraid that prices for Grab’s ride-hailing and taxi services would rise since he believes that it will have a greater market share. He is open to giving GrabCab a go, as his priorities are affordability and speed of getting a ride. He has decided that he will not stick to just one particular hail-riding platform.
A private-hire car driver for nine years, Ms Ain Sofiah does not intend to switch to being a taxi driver for GrabCab, as she prefers to have the freedom to choose when to use her vehicle for personal use and when for business.
Ms Sofiah added that she’s also prioritising her safety because she thinks that taking street-hail rides is not safe, believing that the passengers’ identity cannot be traced, unlike those who book private ride-hailing trips.
Mr Teo Luan Goon, a relief taxi driver for 2½ years with ComfortDelGro, is open to the idea of shifting to GrabCab, if the taxi rental charges and commissions taken from drivers are substantially less than present market standards.