Singapore’s second largest taxi operator, Trans-cab, has announced plans to utilize a “surge pricing” scheme in the following weeks. Premier Taxis is also doing so — both companies have about 7,000 cabbies between them.
Trans-Cab has justified this by stating that the move will help its drivers increase their earnings while simultaneously meeting peak-hour demands. Basically, the new system will work similar to that of ride-hailing apps such as Grab and Uber — prices for taxis go up during peak hours and decrease during non-peak periods.
But take note that metre fares will continue to be utilized for normal rides. The “surge price” applies when a Trans-cab taxi is booked via its booking platform partner, Grab.
Fellow taxi operator Prime has expressed interest in the surge pricing system as well.
According to the taxi companies, this change is being implemented to even out the competitive playing field between cabbies and private-hire drivers.
Update: ComfortDelGro, which provides more than 60 percent of cabs in Singapore, has also announced it will put into effect the ‘surge pricing’ scheme.
