SG: Cab fares rise as a result of costlier COE prices.
When one flags down one of the 300 new Cheverolet Epica Taxis operated by Transcab, he would notice that the flagdown fare is $3.60, or $0.20 more than a similar taxi from a previous batch. Transcab sited the rise in COE costs for the fare hike. Each taxi cost $40,000 more as a result of the increased cost of COE. So how can one differentiate the difference between the 2 batches of taxis? Well, one should look at the window rim colour(the roof pillar assembly). The previous batch had white window rims, where as the current ones have the pillars in body colour. Of course, with a higher cost of COE, the taxi rentals would be higher too. As such, to compensate for the increase in rental, the taxi fares have to increase as well.
Some find it unreasonable that to use the new cabs, one has to pay more, even though they are virtually identical. This ties in with what market research says about the taxi market in Singapore; consumers would avoid the more expensive taxis, so rather than buying new cabs all the time and raising fares, operators should focus on increasing efficiency.
To allow taxi operators to add to their fleet without the fare hikes, Mr Ang, advisor of the National Taxi Association, suggested that the LTA view taxis as a form of public transport and renew their COE system. This would enable the cost of cabs to remain relatively constant, thus, reducing cab fares.
Credits:
Convenient and Hassle-Free- Consumer Protection
Transparent Process
With No Obligation
Get the Best Price for your used car
from 500+ dealers in 24 hours
