Sunday, November 11, 2007

Simplified taxi fares

Recently, there were press reports about over-charging by taxi drivers preying on tourists. This will give a bad image of the taxi service in Singapore.

The source of this problem is the de-regulated taxi fares. The differing fare structures and many surcharges are confusing to the public. This allows bad taxi drivers to exploit the situation.

We have to adopt a regulated, simplified fare structure. I suggest the following:

1. Have a higher flag down fare (say $3.50) and an increase (say 10%) in the charge based on distance. Allow the fare to increase according to time, if the taxi is caught in a traffic jam.

2. Abolish the surcharge on peak hours and for ERP. Allow the taxi driver to pay a flat daily fee (say $20) and avoid paying any ERP charges.

3. Reduce the taxi call charge to $1. This will help to cover some of the cost, but should not be a source of profit to the taxi driver. It makes more efficient use of the taxis.

The basic fare can be adjusted to ensure that there is a balance between supply and demand for taxis. It should cover the operating cost of the taxi and offer a fairly attractive earnings to the taxi driver.

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