News

Everything About The Transport Bill That’ll Affect Ride-Hailing Firms Like Grab & Go-Jek

2019-08-07 , 12:00 pm

I have good news and bad news.

The good news is that your Grab and Go-Jek rides may be safer and less likely to end in an accident.

The bad news is that surge pricing still exists.

Transport bill

A new transport bill tabled in parliament last month will introduce regulations for ride-hailing and street-hailing firms in Singapore.

Under this new bill, called the Point-to-Point Passenger Transport Industry Bill, two separate licenses will be issued to street-hail operators and ride-hail operators like Grab and Gojek.

Ride and street-hailing operators will have to apply for this license if they have at least 800 vehicles on their platform. Those with smaller fleets must apply for an exemption.

Companies caught providing transport services without this license will face a fine of up to $10,000, up to six months’ jail, or both. They’ll face a further fine of $500 a day if the offence continues after conviction.

Safety

One of the objectives of the new bill is to improve safety standards in ride and street-hailing companies.

So, if you’re sick of your Grab or Go-jek drivers texting while driving, this new bill might help.

The Land Transport Authority (LTA) will now track the number of accidents and traffic violations that occur when drivers carry out their trips.

“Operators whose drivers have committed too many accidents or offences can be penalised through regulatory sanctions”, said Senior Minister of State for Transport Dr Janil Puthucheary.

“This is to ensure that operators play their part to encourage safe driving behaviour and reduce driver offences”, added Dr Puthucheary.

Necessary

These safety measures are certainly necessary for an occupation that makes driving competitive.

Drivers, understandably, would want to complete their trips as quickly as possible so they can accept and complete more trips.

However, in their desire to complete more trips and make more money, they may flout traffic rules and endanger commuters and pedestrians.

All private-hire vehicles will also have to undergo an annual safety inspection.

Fares

Additionally, the Public Transport Council (PTC) will be given the authority to ensure that taxi and private-hire car fares are clear and transparent.

Ride-hail companies like Grab and Go-Jek will have to provide flat fares for bookings upfront to the customers.

They already do that, but the good news is that overcharging and fare evasion are now offences.

This will “deter such behaviour, and protect both commuters and drivers”, said Dr Puthucheary.

Unfortunately, dynamic or ‘surge’ pricing will not be regulated. According to Dr Puthucheary, this is because dynamic fares allow for better matching of supply and demand.

No exclusive deals

In addition to the new license and safety requirements, operators like Grab and Go-Jek will be barred from offering exclusive deals that prevent drivers from providing services for other operators.

This allows for healthy competition in the market which will benefit both drivers and commuters.

So what will change for passengers?

Not much, except that your rides will likely be safer and you won’t be overcharged.

But, for the fare evaders, you will soon have to evade the Public Transport Council, because they are coming for you.