SINGAPORE —  The largest taxi operator in Singapore is offering taxi drivers a new way of earning money by signing on as full-time employees with the company to receive a monthly salary of S$1,800 and other benefits. 

ComfortDelGro's new scheme departs from the traditional hirer model, where a driver rents a taxi and keeps what they earn in fares after paying for fuel and paying the operator a commission. This offers drivers the flexibility to decide how long and when they want to drive, though their earnings tend to fluctuate. 

The pilot scheme by ComfortDelGro, which was posted as a job advertisement online on Jan 5, involves fixed driving hours of 11 hours if a taxi driver works four days a week or nine hours a day for five days a week. 

ComfortDelGro told TODAY that this is the first time the company is introducing such a scheme and that it would be offered till the end of March.  

“We recognise that different taxi drivers have different needs. Some value the security of a full-time employment model that provides stability, protection and benefits, while others prioritise flexibility and autonomy. 

“The (scheme) empowers taxi drivers to choose the option that best aligns with their needs and preferences. This will not only boost driver availability but also address the issue of unmet customer demand for taxis, resulting in shorter wait times for every passenger,” it said, adding that the company hopes to hire up to 50 drivers during the trial period.

As part of the scheme, drivers will receive full-time employee benefits such as annual leave, medical leave and employee contributions to their Central Provident Fund accounts.

They will also get a S$50 mobile phone allowance, and the cost of fuel will be covered by ComfortDelGro.

In addition, those who hit the daily key performance indicators will receive a bonus. The company, however, did not elaborate on what these indicators are. 

This is the first time ComfortDelGro is offering such a scheme, but it is not the first time for a company here. 

In 2018, HDT Singapore Holdings (HDT), which ran a fully electric taxi fleet, offered the same arrangement for its drivers.

At its peak, the company had 129 taxis, compared to ComfortDelGro's 10,801. 

However, HDT shut down in December 2020 due to the decline in ridership owing to the Covid-19 pandemic. 

WHAT ANALYSTS SAY

Professor Terence Fan from the Singapore Management University (SMU) said that the scheme is a way for ComfortDelGro to try and attract back drivers who may have shifted to the private-hire model due to the pandemic.

More people have become private-hire drivers in the last few years due to the attraction of owning a vehicle, although the drawback is that their incomes tend to fluctuate.

Prof Fan, who studies transport economics, added: “Business has been slow during the pandemic, and the taxi drivers bore the brunt of the decline. I think (ComfortDelGro) wants to appeal to the drivers who are into professional driving and want a stable income that takes away some of the risks in the hope of attracting more business.” 

The taxi population in Singapore has been on the decline since its peak in 2014 when there were about 28,000 taxis plying the roads.

As of November last year, there were less than half that number, or 13,622 taxis, in operation.

ComfortDelGro, which runs both ComfortDelGro and CityCab, continues to be the largest operator here. Its fleet size has shrunk to ​​​8,841 as of October last year, down from 13,244 in December 2017. 

On the other hand, the number of private-hire cars has steadily grown, from 67,990 in 2021 to 79,921 in November last year. 

Asked if the trial model has any chance of becoming permanent, Prof Fan said that ComfortDelGro is taking a wait-and-see approach since it depends on the job’s take-up rate.

He anticipated that the operator may be targeting drivers on the verge of terminating their existing agreements and those on the fence between driving private-hire vehicles and taxis. 

Transport economist Walter Theseira from the Singapore University of Social Sciences said that the salaried taxi driver model is rare globally, but it would be good for Singapore's taxi industry to have such experiments to learn which model works better. 

“I don't think HDT's failure meant that the model was a bad one. 

“We simply don't know enough about why. And it was a much smaller platform, so it did not have the same kind of data on the market and bookings as ComfortDelGro would have,” Associate Professor Theseira said.

Positing that different models work for different drivers, he added that some drivers are motivated by earning fare revenue for themselves and they would earn much more from being on the traditional taxi model. 

“There will also be drivers who may struggle to figure out how to optimise their fare revenue, and prefer to simply drive according to the directions of the taxi platform. 

“It may be that we see the sorting of drivers into different business models, which would be good for the industry and drivers as long as there is some freedom of choice.” 

WHAT DRIVERS SAY 

Commenting on the trial, six drivers interviewed by TODAY said that having a stable income was an attractive option, but the monthly salary offer of S$1,800 was too low. 

ComfortDelGro taxi driver Chandra PR said:“Why would I risk my life to drive for eight to 10 hours a day for S$1,800?”

The 63-year-old said that driving for long hours increases the risk of getting into an accident, and late-night driving also means dealing with drunk passengers sometimes.

“A taxi driver faces risks much higher than a cleaner or a computer guy, so I won’t take a salaried job for S$1,800.

"But if it was around S$4,000, I think it would be okay,” he said, adding that he earns around S$4,000 to S$5,000 now. 

A private-hire driver who wanted to be known only as Mr Raj, 49, said that S$1,800 was not enough for him to make the switch. 

“Unless you’re new to the industry or a student, unmarried with no commitments, then it may be okay. 

“Still, you must ask yourself if S$1,800 is enough for a Singaporean to survive in this current economy. No private-hire driver will want to jump to this scheme,” he said. 

Another private-hire driver, Mr Kwan MK, said that driving is not an easy job, so the fixed base salary should be adjusted by taking the risk factors into consideration. 

“Prices are going up. GST (Goods and Services Tax) has also just gone up. I'd say S$5,000 would be better. Nowadays, it’s very rare to see taxi and private-hire drivers with no family or commitments to take care of,” the 47-year-old added.

Driver Andy Kwan, 42, who is with Prime Taxi, said that most taxi drivers enjoy the work chiefly because they can be their own boss. 

“Taxi drivers enjoy the freedom because they don’t have to answer to anyone and are in total control of their working hours."

Commenting on the S$1,800 monthly salary, he said: “If this is the case, I might as well work at McDonald’s, where I can earn S$2,000 and above and maybe get one or two meals free a day."