I disagree with Mr Toh Keng Hoe that a performance-based wage system for cabbies would be better (“For better system, pay cabbies wages based on performance”, Aug 8).

The best way to improve Singapore’s taxi services is to have a complete overhaul of the system.

Channel NewsAsia’s television programme It Figures covered taxi woes last week and it revealed many negative aspects of the industry.

For instance, we require 5.2 taxis per 1,000 people, while Hong Kong requires only 2.5. It is also illogical for taxi operators to be allowed to charge more during peak hours, because that could set a precedent for other public services such as bus, rail, and utilities to do the same.

The present structure is competition-proof because current players in Singapore’s duopoly transport system own more than 70 per cent of the entire taxi fleet and are able to set surcharges autonomously. Where then is the incentive for the rest to compete?

Competition for quality service, not higher fares, should be what is key for the taxi industry.

The Land Transport Authority (LTA) should intervene whenever unfair practices are imposed to prevent taxi operators from morphing into entities that are able to exploit a captive market.

Otherwise, it would run counter to the spirit of why the setting of taxi fares and the supply of taxis were deregulated in 1998 and 2003, respectively, which the Public Transport Council said was to inject greater competition within the taxi industry.

Also, the taxi operators have designed convoluted fare systems with loopholes for manipulation and exploitation, to the detriment of customers.

The result is an unproductive and inefficient industry, where unprofessional drivers fail to deliver promised quality services.

We should learn from Hong Kong’s efficient and customer-friendly system: Abolish all surcharges for phone bookings and go back to basics with a single meter-fare system.

Hong Kong’s secret lies in deploying every available taxi on the road with a professional cabby behind the wheel to pick up fare-paying passengers all day long for the convenience of customers and tourists.

Every cab is thus generating revenue when they are ferrying happy customers who are able to get a cab quickly. There is no need for phone bookings to be made.

The LTA should consider classifying taxis as a form of public transport. Although that would exempt taxis from Electronic Road Pricing charges, the reward of an efficient taxi system would far outweigh the financial cost.

Simplicity is the answer to a win-win situation that would provide every customer a pleasant ride and cabbies a higher-than-median monthly income.