Are Taxis Dying? New Fixed Salary Taxi Company Begs to Differ

In the wake of the new-fangled mobile carpooling industry, headed by Uber and to a certain extent Grab, traditional taxi companies are feeling the pinch, as taxi drivers leave for greener pastures.

One company begs to differ, however.

New taxi company, HDT Singapore Taxi, believes that fixed salaries with employment benefits like CPF contribution and annual leave is the way to attract taxi drivers back. Since the all-electric taxi operator started last October, all 50 of its cabs have drivers. It seems they may have hit upon a goldmine.

Instead of having cabbies rent the cars, and take home whatever they earn, HDT have their cabbies attain a target revenue per month to receive higher monthly pay, on top of their basic gross income of $1,900. Their basic target is $7,500.

As HDT partnered with Grab, their drivers also get customers through the app, and get to keep any incentives from it.

Benefits include all the basic employee benefits like annual and medical leave, and get to charge their vehicles for free. This means they don’t have to account for vehicle rental and fuel expenses in their income.

Unfortunately, there is the issue of flexibility. As HDT’s drivers have to reach a quota for different levels of pay, they don’t have the same level of flexibility as traditional cab drivers.

Completely incomparable with the flexibility of Uber drivers, however. But this brings us back to the original issue of Uber vs Taxis, so it’s kind of irrelevant here.

The viability of HDT’s business model remains to be seen, but they had a pretty good start. What do you think?

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Wen Xianda

Wen Xianda

Xianda plays way too much video games. Seriously, somebody should do something. Otherwise, he's either writing or looking for the next game. He doesn't see the sun much, unless it's for good food, the only thing that gets him out of the house.
Wen Xianda