Extracted from The Straits Times
Taxi shortage issue unresolved
I AM writing in response to the Land Transport Authority's new service regulations and the article, 'Slammed for taxi shortage, Comfort eyes 4 proposals' (ST, Feb 6).
The measures that they are implementing or proposing only address the problem at a superficial level and at an increased cost to consumers.
My idea of good service is convenience at an affordable rate. Convenience would mean being able to flag down a cab with relative ease and not being stuck in a taxi stand queue for more than 15 minutes.
During peak hours, there are long queues at taxi stands in the city but no empty cabs in sight. Through my conversations with several cab drivers, I understand that this is mainly because they will have to pay Electronic Road Pricing charges if they enter the zone without passengers.
This misallocation of resources goes beyond the peak hours.
Take Changi Airport, for example. There always seems to be more cabs than commuters there. This would imply that there is a shortage of taxis elsewhere.
So what will the newest measures and proposals by the LTA and Comfort achieve in the end? The LTA's service regulations make it 'easier' for commuters to book a cab.
Does it address the problem of misallocation of resources? Does it encourage cab drivers to go to areas with a supply shortage?
My opinion is that it merely passes the burden of poor service on to the consumers.
Consumers will continue to find it difficult to flag down a cab and will continue to wait at taxi stands with no cabs in sight and, ultimately, be compelled to book a cab and pay the additional $3.20 for booking charges.
Why are consumers being made to pay for bad service? This new regulation merely makes it easier for desperate commuters to book a cab without addressing the real problem of misallocation of resources.
As for Comfort's proposals, the increase in the peak-hour surcharge attempts to motivate cab drivers to be more responsive during peak hours but, in fact, penalises consumers for poor service in the first place.
I am, however, glad that Comfort is considering expanding its fleet because that would address the problem of inadequate supply directly.
The regulatory body and cab companies should get together to resolve this poor allocation of resources instead of coming up with measures that penalise the consumers.
CHIU LI YU
you folks think price increase will really rectify or lighten this problem?