New regulatory framework for third-party taxi booking services

SINGAPORE — Third-party taxi booking services can no longer require commuters to specify their destinations before making a booking. Additionally, bidding and pre-tipping for taxi services will no longer be allowed.

These changes come under a new basic regulatory framework by the Land Transport Authority (LTA) that is expected to come into effect by the second quarter of next year, according to a statement released by the LTA today (Nov 21). The regulations would apply to fast-growing third-party taxi booking services like Uber and GrabTaxi.

All third-party booking services will be required to register with the LTA for a certificate, valid for three years, to operate in Singapore. They can only dispatch licensed taxis and drivers holding valid Taxi Driver’s Vocational Licences.

Moreover, all information on fare rates, surcharges, and fees payable for the journey must be specified to commuters upfront. According to the statement, this includes the flag-down fare, distance and time rates, booking fees, and applicable peak period and location surcharges.

Booking fees charged by third-party taxi booking services also cannot exceed the booking fees charged by taxi companies.

Customer support services will also be a requirement, including lost and found services and avenues for commuters to raise queries and complaints.

According to the LTA, the framework came was developed after consultations with consumers, the National Taxi Association (NTA), third-party taxi booking services and taxi companies extensively over the past year.

An external executive who handles media queries for GrabTaxi said the company had no immediate comment.

Uber's booking services in Singapore include high-end UberExec and cheaper UberX cars, along with the options of searching for regular licensed taxis.

Uber said the new regulations only applied to taxis, and would not affect UberExec and UberX, for which the company only partners with already licensed limousine and rental car companies.

"We appreciate that the LTA has acknowledged the benefits our technology brings, and like Uber, is putting the interest and safety of consumers and drivers first," Mr Mike Brown, regional general manager of South-east Asia at Uber, said in a statement. WITH REUTERS