Tan Kin Lian's Blog: Distance based fare

Sunday, August 22, 2010

Distance based fare - an example

Here is an example of the calculation of the distance based fare - which seem to be quite complicated.

My view
It is a national habit in Singapore to do things in a complicated way and to spend (i.e. waste) tens of millions of dollars on computer systems and consultancy to manage these complexities. The distance-based fare system is the recent example. (So far, nobody has told me how many millions it cost - so difficult to get relevant information in Singapore). In London, the fares are based on zones, and not calculated in this complicated manner.

6 comments:

michael13 said...: There is an easy solution to every human problem - neat, plausible, and ... wrong. (by H. L. Mencken who was a famous American 20th century journalist, writer and social critic). Nowadays and in Singapore, our present strong government (with a weaker people voice) is more inclined to take a plausible approach to solve our problems. Many recent policies are not set in a neat way although they are not totally wrong. So it is NOT a total surprise that we are unable to access or to get relevant information easily in Singapore. Sad to say that our present government leaders are now in 'comfort zone' and the situation is aggravated by our main media's often half-truth reporting which further confuse the people rather than enlighten them.; August 22, 2010 9:57 AM
hyom said...: If the transport operators were really sincere about distance-based fare system, they should not have a minimum fare. Now, they have raised the minimum fare to $0.71 (4.4% increase). Now, even if you take a very short bus trip of 1 or 2 stops, you will be charged $0.71 instead of a lower fare based on a shorter distance. Now, for very short trips, some Singaporeans will choose to walk. This results in wasted time and loss of productivity. Not what you want with a developed transport infrastructure.

It has been published that two-thirds of Singaporeans save money with the new fare system. What is not said is whether the remaining one-third paid more to more than cover the two-thirds who paid less. Did the total cost to Singaporeans rise as a result?

Given that our public transport operators are privatized public-listed companies, I doubt if they will make changes that hit their profits. After all, they have a duty to shareholders. For a monopoly, they have greater room to mistreat their customers if the mistreatment results in greater profits. The disgruntled customers are forced to keep going back to the company for lack of competition. This becomes a big problem to the citizens if the service provided is something as essential and unavoidable as transport.

I think all these issues have their roots from the privatisation of state-monopolies providing a vital public service. My humble opinion is that public-service entities should focus on cost minimization, not profit maximization. Privatizing them will set the wrong objectives for them.

However, to be fair to management, I think they are doing a great job to the shareholders. It was my mistake not to put the transport companies in my investment portfolio.; August 22, 2010 10:03 AM
Lye Khuen Way said...: There is this interesting view expressed that we should all "Invest" in the two "Public" transportation companies, then we all will have no reason to complain !
Fair, except that not everyone can afford to buy say, 2 lots for every bus/MRT taking member of his household.
So in my equally humble opinion, these companies should be "nationalised". Back to square1.5.....and focus on Cost Minimisation.
By the way, All Singaporeans
indirectly are shareholders by viture of the Government/ Minister of Finance / Temasek's stake in SBS-SMRT-....; August 22, 2010 4:16 PM
SD said...: Yes, its becoming a habit to make simple things complicated. Maybe it makes everybody more busy in that way.. or maybe doing things in a complicated way gives ppl the impression of justifying the higher salary!; August 23, 2010 3:27 PM
Parka said...: Actually distanced based fares calculation doesn't have to make out to be s complicated.

If they really wanted a distanced based, simply just tag it to $xx/km.

And do away with the rebates and minimum fare.; August 23, 2010 6:38 PM
SD said...: According to this article, the traveling time is also included in the calculation of fares.

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1074971/1/.html; August 24, 2010 9:01 AM