Here's what taxi operators should do to overtake private car-hire services
Attracting a more diverse driver profile is one.
The city-state’s taxi services have been taking a hit lately with the emergence of private car-hire services, but what should taxi operators do to battle this?
According to UOB Kay Hian analyst Andrew Chow, inroads of private car hire operators have rattled the status quo of the traditional taxi business.
"We reckon that in the medium to longer term, taxi operators may be inclined to introduce initiatives targeted at attracting a more diverse driver profile, such as increasing flexibility in rental policies or putting up cheaper cars for hire," Chow explained.
More so, he noted that taxi earnings will remain relatively intact, with hire-out rate of 99% with a 3% growth in taxi bookings for FY 16-17.
Quoting Transport Minister Ng Chee Meng, the analyst said the average monthly net income of drivers rose about 5% in real terms due to lower fuel costs.
"The government has acknowledged that more needs to be done to level the playing field between taxis and ride hailing services, where we anticipate a potential review of the taxi availability framework by end-16," he stated.
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