SINGAPORE: Data from the Land Transport Authority (LTA) has shown a growing shift in commuter preferences, marked by a rise in app-based rides and a decline in roadside taxi fares.
In September alone, the average daily passenger volume for taxis and private-hire vehicles exhibited an upward trend, reaching 618,000 trips, representing a 3 per cent increase compared to last year.
However, a closer look at the figures reveals a divergence in the dynamics of taxi services. The number of taxi trips originating from roadside pickups dwindled to an average of 80,000 trips per day in September, showcasing a continued decline throughout the year.
Even during peak holiday periods, taxi stands at shopping malls witnessed queues of taxis awaiting customers as more travellers opt for pre-booked trips.
Industry analysts suggest that the convenience of pre-booking rides through apps contributes to this shift in behaviour, with commuters preferring the certainty and efficiency offered by digital platforms. Passengers can also check the trip’s price upfront and ensure that they have a vehicle waiting for them by using digital platforms.
The data indicates that from January to April, the number of taxi passengers hailed from the roadside averaged 90,000 daily trips. However, this figure steadily decreased after May, reaching 80,000 trips per day in September. Simultaneously, the usage of e-hailing services surged, with daily rides increasing from over 480,000 in January to more than 530,000 in September.
Industry experts also suggest that the overall increase in the total passenger volume of taxis and private-hire cars compared to last year may be linked to the rising costs of car ownership. More individuals seem to be opting for the convenience of ride-hailing services rather than dealing with the expenses and hassles of driving.
The shift towards private hire vehicles can also be seen in the number of licenses for such vehicles vs taxis.
Professional taxi driver licenses are declining, totalling 91,961 in September (1,600 less than in January). This contrasts with the growth in private-hire driver licenses, which increased by over 4,000, reaching 53,148 in September.
As the traditional taxi landscape adapts to the surge in app-based rides, experts emphasize the need for the industry to address the evolving needs of commuters, especially the elderly, and consider more convenient ways for them to book taxis or private-hire cars.