Trans-Cab general manager Jasmine Tan said: ‘Fare revisions take time, we have to observe the situation and the market.’
The New Paper 26 January 2009
By Shree Ann Mathavan, with additional reporting by Eoin Ee, Tan Su Vien, Audrey Tan, Joanna Hor, Bernice Huang, Pearly Tan, Sing Keng Loon, Julian Lee and Geraldine Yeo.
When the taxi meter flashed the $40 fare, advertising executive Miss XJ Tan, 26, could hardly believe her eyes.
While she normally takes the train, she took a cab from her home in Woodlands to her office in Suntec City recently as she had to attend an important meeting.
But no thanks to the 35 per cent taxi surcharge during peak hour travel, coupled with Electronic Road Pricing (ERP) gantries and taxi booking fees, she had to fork out a good $10 more than expected for her taxi fare.
Shocked by fare
Recalled Miss Tan: ‘I was shocked. $40 is just too much. From then on, I decided not to take taxis in the morning.
‘Now even if I’m running late, I will still take the MRT.’
Miss Tan’s experience resonates with many Singaporeans who have griped about the 35 per cent surcharge during peak-hour travel (7am to 9.30am on weekdays, and 5pm to 8pm from Mondays to Saturdays).
All taxi operators began implementing the surcharge from December 2007, along with an increased flag-down rate of $2.80 (up by 30 cents).
Taxi companies said at the time that the surcharge and the other upward revisions of the fare structure were due to a need to match the demand and supply for taxi services at different times of the day.
The increase also coincided with soaring fuel prices then.
A seeming decrease in the demand for taxis now is leaving commuters wondering why the surcharge is still necessary.
Fuel prices have also dipped, reducing operating costs.
At Orchard Road during evening peak hours, there are now often queues of empty cabs waiting for passengers.
Miss Melissa Ler, 29, an account manager, observed: ‘Of course, business is bad for them because the surcharges make fares expensive.
‘So during the downturn, people won’t take cabs unless it’s really necessary.’
Yesterday the Public Transport Council (PTC) announced that bus and train fares will be reduced this year in a bid to help commuters tide over the tough times.
Commuters like Miss Tan are also hoping for the taxi surcharge to be scrapped.
She said: ‘Shouldn’t taxi rides be cheaper as well since other rides are also cheaper?’
But major taxi operators contacted by The New Paper either said that there would be no changes for now, or declined comment.
This year’s Budget, announced on Thursday, will ease the burden of taxi operators.
They will get a 30 per cent road tax rebate and a waiver of diesel tax for unused taxis. Operators have said they will pass on the cost savings to taxi drivers.
But for now the cost-savings will not flow on to commuters.
Despite the lower operational costs, taxi operators told The New Paper that there won’t be any price revisions for now.
Trans-Cab general manager Jasmine Tan said: ‘Fare revisions take time, we have to observe the situation and the market.’
No plans to reduce fare
Prime Taxis general manager Tan Soon Chye and a spokesman for SMRT Taxis also said that they were not looking into reducing fares.
But Mr. Johnny Harjantho, group managing director of Smart Automobile, noted that price revisions may be inevitable if demand for taxis fall further.
He said: ‘If no one takes taxis, operators will have to revise fares.’
But he added that there was ‘no talk as yet’ of revising fares.
ComfortDelgro spokesman Tammy Tan said the operator was closely monitoring the demand for taxi services.
Of the current peak-hour surcharge that consumers are unhappy about, she said: ‘The 35 per cent surcharge was introduced to address the disparity in demand and supply during peak and off-peak periods.
‘This has worked and the disparity has been greatly reduced.’
But while the supply of taxis on the road may have evened out, some cabbies feel that cheaper fares will improve their lot.
Mr. Mustakim Amat, 67, a cabby of 23 years, complains of having to wait for a ‘long time’ at taxi queues with no passengers in sight.
He has seen a drop of 20 per cent in business since December last year.
He said: ‘We just hope that the authorities can reduce the fare, so there will be more passengers for us.’
Some commuters feel fares should now be reduced because operating costs have fallen.
Miss Tan said: ‘It doesn’t make sense that they don’t revise fares because things are cheaper now for them than before.’
She hopes taxi companies can be more flexible in their fare structures.
Said Miss Tan: ‘It’s encouraging that buses and trains are doing their part to ease the burden for consumers during the economic downturn.
‘So I hope taxi operators can likewise reduce their fares.
Miss Ler agreed: ‘With the cuts and lower fuel costs, I don’t understand why they are not scrapping the surcharges.’
1 comment:
Why taxi firms are not dropping surcharges
Trans-Cab general manager Jasmine Tan said: ‘Fare revisions take time, we have to observe the situation and the market.’
The New Paper
26 January 2009
By Shree Ann Mathavan, with additional reporting by Eoin Ee, Tan Su Vien, Audrey Tan, Joanna Hor, Bernice Huang, Pearly Tan, Sing Keng Loon, Julian Lee and Geraldine Yeo.
When the taxi meter flashed the $40 fare, advertising executive Miss XJ Tan, 26, could hardly believe her eyes.
While she normally takes the train, she took a cab from her home in Woodlands to her office in Suntec City recently as she had to attend an important meeting.
But no thanks to the 35 per cent taxi surcharge during peak hour travel, coupled with Electronic Road Pricing (ERP) gantries and taxi booking fees, she had to fork out a good $10 more than expected for her taxi fare.
Shocked by fare
Recalled Miss Tan: ‘I was shocked. $40 is just too much. From then on, I decided not to take taxis in the morning.
‘Now even if I’m running late, I will still take the MRT.’
Miss Tan’s experience resonates with many Singaporeans who have griped about the 35 per cent surcharge during peak-hour travel (7am to 9.30am on weekdays, and 5pm to 8pm from Mondays to Saturdays).
All taxi operators began implementing the surcharge from December 2007, along with an increased flag-down rate of $2.80 (up by 30 cents).
Taxi companies said at the time that the surcharge and the other upward revisions of the fare structure were due to a need to match the demand and supply for taxi services at different times of the day.
The increase also coincided with soaring fuel prices then.
A seeming decrease in the demand for taxis now is leaving commuters wondering why the surcharge is still necessary.
Fuel prices have also dipped, reducing operating costs.
At Orchard Road during evening peak hours, there are now often queues of empty cabs waiting for passengers.
Miss Melissa Ler, 29, an account manager, observed: ‘Of course, business is bad for them because the surcharges make fares expensive.
‘So during the downturn, people won’t take cabs unless it’s really necessary.’
Yesterday the Public Transport Council (PTC) announced that bus and train fares will be reduced this year in a bid to help commuters tide over the tough times.
Commuters like Miss Tan are also hoping for the taxi surcharge to be scrapped.
She said: ‘Shouldn’t taxi rides be cheaper as well since other rides are also cheaper?’
But major taxi operators contacted by The New Paper either said that there would be no changes for now, or declined comment.
This year’s Budget, announced on Thursday, will ease the burden of taxi operators.
They will get a 30 per cent road tax rebate and a waiver of diesel tax for unused taxis. Operators have said they will pass on the cost savings to taxi drivers.
But for now the cost-savings will not flow on to commuters.
Despite the lower operational costs, taxi operators told The New Paper that there won’t be any price revisions for now.
Trans-Cab general manager Jasmine Tan said: ‘Fare revisions take time, we have to observe the situation and the market.’
No plans to reduce fare
Prime Taxis general manager Tan Soon Chye and a spokesman for SMRT Taxis also said that they were not looking into reducing fares.
But Mr. Johnny Harjantho, group managing director of Smart Automobile, noted that price revisions may be inevitable if demand for taxis fall further.
He said: ‘If no one takes taxis, operators will have to revise fares.’
But he added that there was ‘no talk as yet’ of revising fares.
ComfortDelgro spokesman Tammy Tan said the operator was closely monitoring the demand for taxi services.
Of the current peak-hour surcharge that consumers are unhappy about, she said: ‘The 35 per cent surcharge was introduced to address the disparity in demand and supply during peak and off-peak periods.
‘This has worked and the disparity has been greatly reduced.’
But while the supply of taxis on the road may have evened out, some cabbies feel that cheaper fares will improve their lot.
Mr. Mustakim Amat, 67, a cabby of 23 years, complains of having to wait for a ‘long time’ at taxi queues with no passengers in sight.
He has seen a drop of 20 per cent in business since December last year.
He said: ‘We just hope that the authorities can reduce the fare, so there will be more passengers for us.’
Some commuters feel fares should now be reduced because operating costs have fallen.
Miss Tan said: ‘It doesn’t make sense that they don’t revise fares because things are cheaper now for them than before.’
She hopes taxi companies can be more flexible in their fare structures.
Said Miss Tan: ‘It’s encouraging that buses and trains are doing their part to ease the burden for consumers during the economic downturn.
‘So I hope taxi operators can likewise reduce their fares.
Miss Ler agreed: ‘With the cuts and lower fuel costs, I don’t understand why they are not scrapping the surcharges.’
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