ComfortDelGro drivers unhappy with new levy structure for bookings; association raises concerns with authorities

SINGAPORE — Taxi operator ComfortDelGro's move to impose a new levy structure for job bookings from next Tuesday (Sept 25) has ruffled the feathers of its taxi drivers, who say they may end up paying more to the company for accepting bookings.

The National Taxi Association (NTA) has raised concerns with ComfortDelGro as well as the Land Transport Authority and the Competition and Consumer Commission of Singapore.

NTA executive adviser Ang Hin Kee said the association was disappointed that ComfortDelGro "went ahead to implement this new levy structure despite concerns raised from cabbies that it amounts to taking more from them".

The association also wants the LTA to study if the levy proposal would lead to unintended behaviour by consumers and drivers, and affect the commuting experience as a result.

Singapore’s largest taxi operator, which has seen a rise in the number of bookings following ride-hailing operator Uber’s exit in May, said the new levy structure is to encourage even more cabbies to take up bookings.

Under the new structure, ComfortDelGro will take a 3.9 per cent cut of drivers’ earnings when they take up job bookings with fares amounting to S$12 and above (inclusive of the booking fee). The levy for trips under S$12 will be waived.

This means that for a trip that costs S$13, drivers will pay the operator 51 cents. For a S$50 trip, drivers will pay the operator S$1.95.

Right now, drivers are charged a flat levy of S$0.30 and S$0.40 for bookings during off-peak and peak hours, respectively. ComfortDelGro also charges drivers S$1 for taking advance bookings, but it will no longer do so under the new structure.

Drivers were notified of the impending change via SMS on Tuesday. An e-letter penned by ComfortDelGro Taxi's chief executive officer Ang Wei Neng was embedded.

Taxi drivers told TODAY that fares for the majority of their bookings exceed S$12. This means they are likely to pay more in levies to ComfortDelGro.

Some questioned the move, pointing out that a "higher" levy structure seems to run counter to the aim of encouraging more drivers to take bookings.

"Almost eight in 10 of my bookings during peak hours are above S$12," driver Nick Tan, 37, said.

For bookings in the Central Business District, "with the city-area surcharge, booking fee and peak-hour surcharge, when a passenger hops on, even before the car moves, the fare is already S$10", Mr Tan added. "So even if he travels less than 5km, the fare will go above S$12."

Mr Tan, who has been driving with ComfortDelGro for four years, said: "Maybe I'll try to do more street-hail jobs, although taking on bookings will still be more profitable."

Another driver, who wanted to be known only as Raymond, said that "almost eight in 10" bookings he receives are trips above S$12.

"I think this will affect drivers who take advance bookings the most, because the booking fee (for commuters for a regular taxi) is already S$8," the 45-year-old said.

SMALL AMOUNTS ADD UP

While the increase may seem marginal, some drivers such as Mr Paul Lee, 50, lamented that in the long run, the extra fees could amount to "substantially more" than what a driver used to pay.

"The increase may seem like a small value, but take into account the average long-distance bookings a driver takes, multiply this by the weeks and months, and we end up paying more," he said.

Asked about the drivers' concerns, ComfortDelGro's group corporate communications officer Tammy Tan said it intends to dish out "targeted incentives to help drivers", but did not elaborate.

Drivers who spoke to TODAY said that some of the operator's recent incentives include giving them S$20 for taking on 53 job bookings within a four-day period. In the same period, they could also get S$40 if they complete 69 booking jobs, or S$70 if they complete 75 bookings.

In the e-letter, Mr Ang said the company will be providing "enhanced weekly incentive to cabbies in the coming weeks".

Ms Tan did not provide the proportion of bookings for which fares exceeded S$12, and said only that "under the new levy structure, a large number of drivers will not be paying any levies".

"We hope this will serve as an incentive for them to take on even more booking jobs. Longer-distance fares will see slightly higher levies, but fares collected by our drivers will also be higher," Ms Tan added.

ComfortDelGro's fleet of more than 12,500 Comfort and CityCab taxis accounts for more than half of the total number of taxis here. It has seen its fortunes revive in recent months after ride-hailing operator Grab acquired Uber's South-east Asia operations.

In July, it said that it would purchase some 1,200 Hyundai Ioniq hybrid cars. The first batch of 200 Hyundai hybrids delivered from the second quarter of this year was the first addition to its fleet in about one-and-a-half years, and was seen by observers as a turnaround in the taxi industry.

While the majority of drivers were unhappy with Comfort DelGro's levy move, some such as Mr Ee Teck Hian, 51, said: "It's still better to have bookings rather than none at all."