Ever since the emergence of ride-hailing services such as Grab and Uber (RIP), taxis have struggled to get passengers.
Who wants to walk out to the main road when you can get a car to come right to your block for free?
As a result, many cabbies have crossed over to the ride-hailing firms, leading to a significant drop in taxis’ fleet.
Now, one taxi operator has decided to enter the ride-hailing fray.
As they say: if you can’t beat ’em, join ’em.
ComfortDelGro Trying Out Private-Hire Vehicles in Its Fleet
ComfortDelGro will launch a trial of a new ride-hailing service next month, in a bid to supplement its fleet.
In a media release, the company said the trial will begin on 4 Feb, and will involve “a small number of private hire cars”.
The trial is expected to run till March 2021.
Upon completion, the company will assess the response to the service and gradually open it up to more private hire car drivers.
ComfortDelGro was one of the four firms awarded a three-year ride-hailing service operator licence last October.
This licence allows the company to provide ride-hailing services through both taxis and private-hire cars.
The decision to try out private-hire vehicles may be a response to the falling number of taxis in its fleet.
According to CNA, while the firm is Singapore’s largest taxi company, its fleet has fallen from around 17,000 in 2016 to 9,551 as of November last year.
This, of course, is due to the emergence of ride-hailing firms such as Grab and GoJek.
Commission Reportedly ‘Lower’
ComfortDelGro said it will recruit 25 private-hire car drivers for the beta trial to collect feedback.
It will then gradually recruit more drivers as the demand grows.
However, if you’re hoping for cheaper fares, you’ll be sorely disappointed.
“The fare structure for the ride-hailing service follows that of our current ComfortRIDE fare structure now,” the firm said.
There’s good news for drivers, however, as the commission fee for such booking jobs will be “lower than the current market rate”.
While ComfortDelGro didn’t provide specifics, it will likely be lower than commission fees for ride-hailing services such as Grab or Gojek, which is around 20%.
This is the portion of revenue that drivers have to pay to the company.
Some cabbies are concerned, however, that the increase in the supply of rides may adversely affect their income, as more drivers mean more competition for passengers.
Moreover, older drivers may not be familiar with the use of mobile applications.
But businesses have always needed to adapt to the changing world to be successful. So, while it may present some difficulties for cabbies, it could help the company combat its Covid-19 downturn.
Featured Image: Phasut Waraphisit / Shutterstock.com
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