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Dynamic-pricing option for taxi operators approved | TODAYonline

The new surge pricing model will complement the existing metered-fare model for commuters

SINGAPORE — Paving the way for a sea change in how demand for taxis will be met during peak hours, the Public Transport Council (PTC) and Land Transport Authority (LTA) on Friday (March 17) gave several traditional taxi operators the green light to implement dynamic pricing — or surge pricing — for trips booked through mobile applications.

“We have no objections to the proposals,” said PTC and LTA in a joint statement. Shortly after the announcement, it was confirmed that Grab will be working with five operators — SMRT Taxis, Prime Taxi, Premier Taxis, Trans-Cab and HDT Singapore Taxi — to roll out a new service. Called JustGrab, commuters using this service will be informed of their fare prior to the start of the journey. The fares are calculated based on travel time, distance, booking fees and real-time demand and supply for taxis, said Grab and SMRT Taxis in a news release. More details of the new service will be announced on Wednesday.

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Dynamic-pricing option for taxi operators approved | TODAYonline.