Taxi fare increase earlier than expected...

taxi fares are increasing! - I wonder if it is really a good thing to the drivers who recently got the fare increases.
@ahgong (10064)
Singapore
December 17, 2007 1:56pm CST
Sigh~~~ it is Monday (17 Dec 2007) already. The cost of taking cabs has raise, ahead of its Jan 08 dateline as reported previously. The new flag down rate for its cabs is up by $0.10. The peak hour surcharge = $2, up from $1 previously. Previously, trips below 10 km, 225m = $0.10. Now, trips below 10 km, 210m = $0.10. Previously, trips above 10 km, 200m = $0.10. Now, trips above 10 km, 175m = $0.10. Calculations showed that factoring in all the increase, a 10-km ride during a peak period will cost about 14 to 18 percent more than previously. "ComfortDelgro says service standard should be de-linked from fare increase" How convenient! When people pay more for something, especially service, they expect the service standards to improve. If not, why the heck would people be willing to pay more for? But in a competition adverse industry like taxi services in Singapore, consumers do not have much bite when complaining about services. One company increases the price will only lead to the rest of the companies doing the same. So there is no difference whether you take the cab from company A or from company B. "The company added that it is constantly looking to improve its service and this latest fare revision is pegged to escalating fuel prices." I wonder what they have done to improve its services? Any increase in fares are always pegged to escalating fuel prices. But when fuel prices fall, the peg never follows. Who ever invented the phase "what goes up must come down" oughtta be hanged! *cheeky* "They believe the move will help taxi companies cope with the higher cost of operation and also improve the demand and supply situation for the commuters" I personally do not believe that it will make that much of a difference to the drivers. If they are already willing to sit and wait for higher fares by means of a booking, what is to say that they will be willing to pick one up from the street when the booking fee have also increased so much? Unless you tell me you abolished the booking fee during the peak hour period in favor of the 35% peak hour charged based on the fare, then I would say it is a step in the positive direction to encourage drivers to go into the CBD area to pick fares up from the street rather than wait for a booking. I am really curious about how "the changes could attract more entrants into the taxi industry and spur drivers to provide better service" when the companies that hire out these cars for use as taxis do not educate the drivers on better service standards. Well, time will tell if the changes will encourage more to drive and provide a better service at the same time. Let all observe more closely the next time we get up a cab.
1 response
@cheezer (91)
• Singapore
29 Dec 07
Actually, I'm not in favor of the price increase. Some taxi drivers are complaining that business have slowed down quite abit because lesser people want to spend the additional. Besides an incremental value of $0.20 instead of $0.10, the 35% additional during peak hours is also quite scary. I used to pay $8.80 (the most $9) from Tampines to MacPherson. Today (Saturday), I got to pay $12.45. The weekdays morning peak hour is even worst. For me to get to, I got to incur peak hour surcharge, ERP charge, 35% surcharge. So why didn't the taxi companies decrease taxi rental instead of putting the load on consumers? Reason is simple. On 14 Aug 07, TODAY reported that for the half-year ended 30 Jun, 2007, ComfortDelgro achieved an 8.6% increase in revenue to about $1.5 billion. Net profit rose 10.5% to $113.9 million. The other public transport opertor, SMRT, earlier released it report for the financial year ending 31 Mar: "The group turned in sterling results for the year ended 31 Mar. Net earnigs after tax rose by 31% to $135.8 million - a record since listing in 2000." With these strong profit, they will definitely not decrease taxi rental so that their profit can still remain. Coz no matter how much lower the taxi drivers are earning, they still collect the same rent. I should have joined the transport industry!!
@ahgong (10064)
• Singapore
2 Jan 08
From my numerous conversations with the cab drivers I was commuting with, most of them are saying that they will likely to return the cab to the company cos earnings is dropping due to the increase in fares. If enough drivers turn in their cabs, something might be done eventually. Well, if things continue to remain status quo, the cab companies will have to bring down the rental some how. Being a face-conscious society we are in, they will come in the form of rebates. AND because it is rebates, it will not be forever. Till the time people forget about the existence of rebates, it will be gone. Then the cycle will repeat. It's a conspiracy I tell you!