Can taxis still compete with ride-hailing? Yes, say industry players

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Transport News

Taxis,Grab

As the number of taxis on Singapore’s roads dwindle, industry players discuss if traditional cabbies can still compete with ride-hailing on CNA’s Deep Dive podcast.

Taxis wait in line along Battery Road during the evening peak hour in the central business district of Singapore on Jun 2, 2020 - the first day of Phase 1 post-circuit breaker. SINGAPORE: Think the good old taxis with their lighted roofs and metered fares are being booted out by ride-hailing apps like Grab and GoJek? That may not be the case, industry players said.

But even on those platforms, Mr Ban, who has been ferrying passengers on Singapore’s roads for the past eight years, uses the “standard taxi” option, which charges customers by the meter. All drivers can accept bookings but unlike ride-hailing drivers, cabbies can also pick passengers up at taxi stands, or get flagged down along the streets.

“The fare system has to try to balance supply and demand,” the associate professor of economics from the Singapore University of Social Sciences added. Aside from a large number of potential passengers on apps, drivers are also choosing ride-hailing due to the cheaper rental of a private car compared with a taxi.

Taxi companies, too, have been adapting, as the two sides try to offer the best of both worlds to cater to different consumers.

 

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