Don’t stop taxi industry from adapting to competition: Ng Chee Meng | Channel NewsAsia

SINGAPORE: Amid stiff competition from Grab and Uber private-hire cars, the local taxi industry should not be stopped from adapting to new market conditions, such as by introducing dynamic pricing, said Second Minister for Transport Ng Chee Meng in Parliament on Tuesday (Apr 4).

Last month, local taxi companies were given the green light to roll out dynamic fares, popularly known as surge pricing, for trips booked through mobile applications. With surge pricing, the cost of a taxi trip booked through a mobile app will vary according to demand. This means that commuters will pay more during peak hour and high-demand periods, and pay less when demand is low.

Mr Ng noted that several taxi operators had applied to the Public Transport Council (PTC) to implement dynamic pricing as “they felt they had to make this move in order to compete against private-hire car services”.

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Don’t stop taxi industry from adapting to competition: Ng Chee Meng – Channel NewsAsia.