Taxi operators to be allowed to sell cabs over 3 years old, convert used cars to taxis

Taxi companies will be allowed to sell taxis that are more than three years old — capped at 5 per cent of their fleet per year — and convert used vehicles under five years old into taxis, subject to approval from the Land Transport Authority (LTA).

- Lee Nian Tjoe

These are among the latest revisions to the point-to-point transport (P2P) sector, comprising taxi and private-hire car (PHC) services, aimed at helping companies manage costs and stemming the decline in Singapore's taxi population.

During the debate on the Ministry of Transport's (MOT) budget in Parliament on March 5, Senior Minister of State for Transport Amy Khor said these are moves to further level the playing field between taxis and PHCs.

They also give taxi operators greater flexibility in managing costs and growing their fleets.

To allow the growth of taxi fleets, the suspension of a 2 per cent cap on annual taxi fleet growth — in place since 2021 after Covid-19 hit — will remain.

Dr Khor said allowing the sale of cabs that are more than three years old will enable operators to sell under-used taxis and reduce the costs of holding on to them.

"This added flexibility can also reduce operators' risks when trialling new taxi models, such as bigger, more expensive multi-purpose vehicles, which can better serve larger families," she added.

Meanwhile, the conversion of used vehicles into cabs will give taxi operators another option to grow their fleets, Dr Khor said.

Mr Ang Wei Neng (West Coast GRC), who is chief executive of taxi operator Strides Premier, said PHCs have "significant advantages" over taxis.

Instead of requiring taxis to be painted in the operators' colours, he proposed identifying them with a removable taxi top and an LCD sign. This is so that the vehicles can be used for other purposes when not providing taxi services, thus levelling the playing field with PHCs.