4 firms awarded ride-hailing licences; rules for point-to-point transport operators to start Oct 30

• A fifth company, Ryde, was given a provisional ride-hailing licence
• The new licensing framework was implemented for greater regulatory oversight by the authorities
• For instance, it would enable PTC to enforce against fare evasion and overcharging

SINGAPORE — Four companies have been awarded ride-hailing licences under the Government’s new licensing framework for the point-to-point transport sector, which comes into effect on Oct 30 (Friday).

The four companies are Comfort Transportation run by ComfortDelGro, GrabCar run by ride-hailing firm Grab, Velox Digital Singapore — more commonly known as Gojek —as well as Tada Mobility, the newest entrant to the ride-hailing scene.

A fifth company, Ryde Technologies, which started out as a carpooling platform, was given a provisional one-year licence and will have to fine-tune its operations to meet regulatory standards to be considered for a full licence.

In a statement on Friday, the Land Transport Authority (LTA) said that the ride-hail service operator licence is valid for three years. After that, the companies have to reapply for a licence.

LTA also said that another new licence under the framework has been given out.

GrabCar was awarded a carpool service operator licence — also valid for three years — that will allow it to offer carpooling services on its platform.

A third licence will see existing taxi operators automatically transit from their previous Taxi Service Operator Licence into the new framework through the Street-hail Service Operator Licence.

WHY IT MATTERS

The new point-to-point regulatory framework has been at least two years in the making, with the P2P Passenger Transport Industry Act passed in August last year.

Under the framework, any firm with 800 or more vehicles on its platform will have to apply for a ride-hailing or carpooling licence.

The applications for the two types of licences opened in May this year but the LTA delayed the licensing regime from June to October as a result of the Covid-19 pandemic.

With ride-hailing companies having to abide by certain rules, LTA and the Public Transport Council (PTC) will have greater regulatory oversight over the sector and protect the safety and interest of both commuters and drivers.

This means:

• Giving PTC powers to enforce against fare evasion by passengers and overcharging by drivers on trips booked through ride-hail service operators

• Requiring operators to publish the booking charges, metered charges per distance and other additional surcharges on street-hail and metered ride-hail trips, which is an existing requirement for taxi operators

• Requiring operators to make clear to commuters at the time of booking a fixed-fare ride-hail trip, what the fare is and if there are any added charges that may be levied

• Private-hire transport operators will also be required by law to ensure that their drivers send their vehicles for regular inspections and to also meet standards for accident rates

• Taxi drivers will be legally allowed to sign up with any ride-hailing companies to provide fixed-fare rides. There was previously no regulation in place

WHAT OPERATORS SAY

Ms Tammy Tan, group chief corporate communications officer at ComfortDelGro, said that being granted the licence means that the operator can continue to offer passengers and taxi drivers its mobile application booking service in addition to phone or SMS bookings. 

“The new framework will not only protect the safety and interests of commuters but will also ensure that all ride-hailing operators adhere to similar strict guidelines that have been in place for taxi operators for so many years,” she said.

Mr Andrew Chan, managing director for transport for Grab Singapore, said that the new licence will “help to ensure higher safety standards in the industry while facilitating a fair, open and contestable market”.

He added that in line with the new regulatory framework, Grab is progressively working towards having an age limit of 10 years for the private-hire cars on its platform by July 2022. 

Grab is also looking to equip its drivers who use cars that are seven years or older with “better knowledge and skill sets to keep their vehicles in good condition”. 

“To ensure our driver-partners have sufficient time to adjust, the new requirements will be implemented in phases over 20 months,” Mr Chan said. 

Mr Lien Choong Luen, general manager of Gojek Singapore, said that the clause in the new licence that allows all taxi drivers to sign up with any ride-hail platform is the one he welcomes the most.

“These drivers will be able to enjoy an additional source of earnings by completing trips booked via the ride-hail app, while they continue to take on street-hail jobs,” he said.

Mr Lien added that commuters will benefit with more drivers being available and shorter waiting times.

Mr Jonathan Chua, general manager of Tada, said that the “most immediate benefit” is that drivers on the Tada platform will be able to receive a fixed-fare job.

“This means that riders will be served by an even wider pool of drivers — both taxis and private-hire vehicles,” he said.

Mr Terence Zou, chief executive officer of Ryde Technologies, told TODAY that the firm, which received a one-year provisional licence, had been experiencing a “multiple-fold increase in load over the pandemic period”.

It is now working with LTA to streamline its operational processes to meet this demand.

“We have since instituted most measures and are ready for the new point-to-point regime,” he said.