JustGrab: SMRT, Prime, Premier, Trans-Cab, HDT
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'Dynamic fares' in the works at 4 taxi companies: What you need to know
Four taxi companies - ComfortDelGro, Trans-Cab, Premier Taxi and Prime Taxi - have signalled their intention to implement "dynamic fares", triggering concerns among commuters that cab fares could rise.
More commonly known as surge pricing, a system already in use by ride-hailing service Uber, the move will see fares fluctuate according to demand.
Second Minister for Transport Ng Chee Meng had noted on his Facebook page that it was "not unexpected" that some commuters would feel uncomfortable with its introduction, although he warned that taxi companies would need to ensure that it improves the matching of supply to the demand for taxi services.
Here's a look at what changes the four companies - along with Grab, another ride-hailing service - are looking to introduce.
1. COMFORTDELGRO
PHOTO: COMFORTDELGROThe transport giant, which controls over 60 per cent of cabs in Singapore, has informed the Public Transport Council (PTC) that it intends to introduce "demand-pegged fares" for phone-booked rides.
But unlike Uber's surge pricing mechanism - informing the commuter of how many times the fare would go up by - ComfortDelGro's system will simply flash a fare.
Should the customer reject the flat fare, he can choose to go by the metered fare, although it is not certain that cabs will be available for him.
2. TRANS-CAB
PHOTO: ST FILEThe second largest operator with 4,566 taxis plans to implement dynamic fares, which will apply only to commuters hailing a cab via the Grab app.
3. PREMIER TAXI
PHOTO: ST FILEPremier Taxi, the second-smallest player here with a fleet of 1,889 cabs, has a similar plan to Trans-Cab.
Only commuters using the Grab app will be affected.
4. PRIME TAXI
PHOTO: ST FILEThis is now the latest firm to have informed the PTC of its intention to introduce dynamic fares.
Meantime, in a separate development, the ride-hailing firm Grab is reportedly rolling out a new service - JustGrab - that provides its users with fixed upfront fares when booking a taxi. This fixed fare takes into account travel time, booking fees, and location- and time-based surcharges.
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surge pricing time will taxi still do street hail?
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even before this announcement, when i was driving taxi, i do Grab jobs most of the time.
hope fully this will shorten the taxi Q at air port.
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Taxis will still do street and taxi Q job lah, surge price, if other taxis go for it, CBD will full of pax in Q for taxis, think of it, it is a good move for ah pek like me who careless abt surge. From a taxis driver view, when all remain constant, fuel, rental, cost of operating...and you are given another option, why not take it..nothing to loose
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Parliament: Taxi companies likely to retain metered fare system even with new surge pricing http://str.sg/4hfu
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Originally posted by FireIce:
Parliament: Taxi companies likely to retain metered fare system even with new surge pricing http://str.sg/4hfu
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What so confusing, it is same like prostitutes at geyland and joo chiat price mah, if demand high, supply low their prices will be higher, but when demand low, and supply in excess, like in the afternoon, the prostitutes prices will be lower and negotiable. So, just think like you are prostitute, they also understood what is dynamic pricing, then you will not get confuse, I suspect that they copied the model of prostitution.
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Can someone explain how the new fare structure works?
This is my understanding.
Peggy used CDG apps to book a cab from Bedok to Vivocity on Friday evening 8pm. Due to high demand, the fare surged to 2 times the metered price to $30. Then she used gothere.sg apps to check the metered fare and it turns out to be $15 (inclusive of peak ane booking charges). Seeing that metered fare is much cheaper , she opted for the metered fare and guai guai wait for CDG's confirmation on cab availibility.
So the CDG drivers in the vicinity received the pings and will decide if he or she wants to accept the metered booking. If someone accepts the metered booking then good for Peggy but if no one accepts the metered booking and she'll have to LL use the apps and book again and pay 2 times the fare. Correct?
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Not this way lah, In cdg, there will be no x1 or x2 or x3 kind of shit like UG, it will follow the prostitution price model. A pax open cdg apps and her location, apps immediately register her location, Amara hotel, then she key in her destination (this one guarantee with destination one hor), then she press ok, on the apps, it will show a fix price, like just $25 (no x1 or x2 or x4 kind of shit). If she accept, she book it. If she thinks it is high, she can switch to book taxi base on taxi pricing which give her a range estimation of the fares. like $18 to $22. She can as usual, book a cab, but no cab insight, she then can switch to take the fix price at $3 extra, which many cabs will be more than willing to accept, she get the cab So, if uber and grab at that point of time is x2 surge like $30...from a paxs perspective, you think she will book a fix rate cab or UG??? That is why Grab quickly come out with JustGrab pricing, same same prostitute price model, and all these fix pricing take into the account of surcharges, peak period and so on...so good luck drivers.
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metered fare is still needed for flag down
booking via app (taxi or uber/grab) is subjected to availability and still got to wait for the vehicle to come
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So current cbd surcharge still have? 6pm to 1159pm 25%? Midnight surcharge?
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you are the taxi driver, you decide how to accept the booking or to do normal street job
lets say you want to go back to tampines to rest at home
got surge booking to tuas. u want to take or not ?
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so ultimately it's about the service level..........
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advice
happens to me too, so don't rush to do a booking and get involve with accident or beat traffic red light.
if cannot be on time to reach pax, just cancel booking and do another job
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Originally posted by FireIce:
so ultimately it's about the service level..........
Ultimately Grab wants to kill off taxi trade
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Originally posted by Pandanchen:
you are the taxi driver, you decide how to accept the booking or to do normal street job
lets say you want to go back to tampines to rest at home
got surge booking to tuas. u want to take or not ?
Why must be tampines to tuas. Cannot fr cck north 7 to ap
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Taxis may soon get go-ahead to use dynamic pricing
The taxi industry should be allowed to innovate and adapt to new market conditions and competition, Second Minister for Transport Ng Chee Meng told Parliament yesterday.
Mr Ng's comments were a strong hint that taxi companies would soon get the go-ahead to use dynamic pricing as another option for booked trips.
ComfortDelGro, which controls over 60 per cent of cabs here, told the Public Transport Council (PTC) last week of its plan to introduce dynamic, or surge, pricing - similar to that used by third-party car hailing companies Uber and Grab.
Trans-Cab, Premier Taxi and Prime Taxi have also informed the PTC of similar plans.
The PTC is in discussion with the taxi companies, said Mr Ng.
Chua Chu Kang GRC MP Zaqy Mohamed said commuters are now faced with a "double whammy" of fare uncertainty and taxi availability.
Pointing out that the Taxi Availability framework, which requires taxi companies to clock a minimum daily mileage, was scraped last year, he asked: "How can the ministry ensure that the public will be adequately served?"
Mr Ng said he understood some commuters' concerns about dynamic pricing but said they would know exactly how much their fare would be and can choose to accept or decline.
"The taxi companies, I understand, intend to retain the traditional metered fare system even as they introduce dynamic pricing. But ultimately, taxi companies should ensure that dynamic pricing improves, and not worsens the matching of supply to demand," he said.
Transport experts think that surge pricing, which kicks in only when demand is high, will likely push up taxi fares, especially during peak periods.
SIM University economist Walter Theseira said: "Demand would probably be higher during peak periods, where there are currently surcharges.
"While it depends whether taxi companies can comfortably meet demand during these periods, it is unlikely they would want to bring down the current prices."
He is concerned that elderly people who do not know how to use apps to get a taxi might find it more difficult to hail one on the street.
UniSIM adjunct associate professor Dr Park Byung Joon, a transport expert, also thinks that fares are likely to go up.
He said: "During non-peak periods, private hire cars are only slightly cheaper than taxis, but they can be much more expensive during high demand.
"If you average it out, it would probably be more expensive for taxis using surge pricing."
Government Parliamentary Committee for Transport chairman Sitoh Yih Pin said technology had disrupted the industry and provided more options and value for commuters, but he also highlighted the difficulties faced by taxi drivers.
He added: "I do not advocate protectionist policies for our taxis. But in a reasonably short period, three events and their corresponding policies are likely to have repercussions on the livelihoods of taxi drivers.
"They are the entry of private hire cars, the restructuring of diesel tax and the push for automated driverless cars."
jiang efficient worrrrrr
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Those porfessors.....
1 has to be TD to understand Taxi
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Knn, driving taxis also need a professor to come and intervene, why not they go comment about bangala road side workers?
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Dun hope that taxi surge will be like phv, surge x5 type. The most another few dollars more nia...but fixed fare.
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I mean if during surge pricing income much better than street hail then driver will choose to take booking than street hail right?
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surge (fixed) pricing
if you are caught in a jam, you think this fixed price is better? some jam can be one hour long
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I think as long as it is an option, just take it or leave it, nobody will force you to take the fix pricing if you dun want it, we have been discussing and talking fix pricing and surge price base on peak period timing, what about non peak period, the fix price will go below meter pricing, and that will be a direct competition with UG...and as a TDs, your business might increase, but have to take the lower pricing....better than roaming around empty..tio bo.
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Originally posted by liewsc:
I mean if during surge pricing income much better than street hail then driver will choose to take booking than street hail right?
Minimal impact on street hail.
Even now without surge pricing, drivers already choose to take bookings during peak rather than street hail since bookings earn more. So it is not as if drivers behaviour will suddenly change for the worse with surge pricing with respect to street hail.
The change is between normal bookings and surge bookings. Normal bookings will be harder to get cabs unless you want to pay more for surge bookings. That's all.
There will always be drivers who will take street jobs but these will get lesser and lesser.
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passengers have choice
drivers have choice
if drivers accept surge, the surge pricing will slowly do down as demand is met.......
really depends on the location and how desperate the passenger needs a ride