Cab companies could be allowed to bid for COEs

[Lotr]

Rumors? Test balloons. MLMLWML

 

 

Rule against this, implemented in 2012 to address complaints that it was driving up car premiums, said to be under review

Christopher Tan

Senior Transport Correspondent

 

Taxi operators may soon be allowed to compete with car buyers for certificates of entitlement again - a move which may fuel competition for COEs.

 

Regulations banning cab firms from bidding for COEs were put in place in 2012 to address a longstanding gripe among car buyers and sellers that taxis were dri-ving up premiums and providing unfair competition.

 

The Straits Times understands that those regulations are being reviewed, and it is possible that they could be reversed.

 

The LTA, however, said that it would not comment on "market speculation".

 

Even though taxis were almost always larger cars - which should rightfully be competing for COEs in Category B (cars above 1,600cc) - they were lumped with Category A (cars up to 1,600cc) in the past. It was not uncommon then for taxi companies to make up one-third of the bids submitted during a tender.

 

With the removal of taxis from COE bidding, put in place by former transport minister Lui Tuck Yew, cab operators have been paying Category A's prevailing quota premium (PQP, or a moving average of past premiums).

 

The move eased pressure on Category A almost immediately. But two years after the rule change, private-hire operators such as Uber and Grab started to grow their fleets and, unlike taxis, were allowed to bid for COEs.

 

The pressure on prices eased when Uber pulled out of Singapore last year, but started to build up this year with the arrival of Indonesian ride-hailing firm Gojek. With Grab's fleet expansion, and smaller players like Ryde and Tribecar joining the fray, premiums are once again heading north.

 

The Straits Times understands that allowing taxi firms to bid for COEs again could form part of an industrywide review of taxi and private-hire operations.

 

Results of the review, conducted by the Land Transport Authority (LTA), are expected by the middle of this year.

 

Industry players said they have been hearing about the possible change, although no one has been informed officially.

 

Trans-Cab managing director Teo Kiang Ang said such a move would not be desirable as it is likely to drive up COE prices, translating into higher business costs.

 

Premier Taxis managing director Lim Chong Boo said companies would have to make "strategic changes to the business model" if they are allowed to bid again.

 

Motor traders expect the move, if implemented, to displace more private car buyers. For the past few years, private-hire operators have edged out thousands of car buyers with aggressive fleet expansions. Yet, many of the cars they bought lie idle.

 

Mr Ang Hin Kee, adviser to the National Taxi Association and the National Private Hire Vehicles Association, concurred.

 

"We have a zero car growth policy. This is not a very smart way of doing things," he said when asked what he thought about the massive idle fleet, estimated to number more than 2,000.

 

Mr Ang, who is also deputy chairman of the Government Parliamentary Committee for Transport, had called for a cap on the taxi and private-hire car population.

 

He pointed out that there are about 130,000 taxi and private-hire vocational licence holders, and too many drivers vying for commuters.

 

Mr Ang said the age requirement for new taxi and private-hire drivers could also be raised to prevent an oversupply of drivers.

[Daniu82]

LTA should just create a new category for taxi companies and PHVs. Sure win for LTA.

[Lotr]

Not a scholar obviously but I wonder if LTA is forecasting a drop in COE so they implement this measure to boost COE level.

 

I mean the recent 3 weeks gap and cars @expo hardly increased CAT B n E.

Edited May 14, 2019 by Lotr

[13177]

  On 5/14/2019 at 12:54 AM, Lotr said:

Not a scholar obviously but I wonder if LTA is forecasting a drop in COE so they implement this measure to boost COE level.

 

I mean the recent 3 weeks gap and cars @expo hardly increased CAT B n E.

They should scare coe dropped too much, maybe they want the coe to maintain in high level?

[RogerNg_185295]

  On 5/14/2019 at 12:59 AM, 13177 said:

They should scare coe dropped too much, maybe they want the coe to maintain in high level? ð¤

Its very obvious what their intention are. To make cars super expensive and at the same time raise revenue for Lta. If this does not work, they will come out with something again.

[Lotr]

Feeling pissed with the G. Prices increasing everywhere and now they want to disturb COE again.

[13177]

  On 5/14/2019 at 1:02 AM, RogerNg_185295 said:

Its very obvious what their intention are. To make cars super expensive and at the same time raise revenue for Lta. If this does not work, they will come out with something again.

I believe this confirmed will work, remember there was once when they allowed taxi companies to bid car coe, the coe price went rocket high!

[Kezg1]

  On 5/14/2019 at 1:10 AM, 13177 said:

I believe this confirmed will work, remember there was once when they allowed taxi companies to bid car coe, the coe price went rocket high!

... from the day Coe was created, it was mean to generate revenue for the coffer... WHO Don't Agree?

[Ct3833]

  On 5/14/2019 at 12:54 AM, Lotr said:

Not a scholar obviously but I wonder if LTA is forecasting a drop in COE so they implement this measure to boost COE level.

 

I mean the recent 3 weeks gap and cars @expo hardly increased CAT B n E.

It is a way for gvernment to make more revenue from COE. By allowing taxi to bid COE would mean taxi, PHV and dealers will all have to compete COE from the same pool, that will push COE up to a new height.

[13177]

  On 5/14/2019 at 1:15 AM, Ct3833 said:

It is a way for gvernment to make more revenue from COE. By allowing taxi to bid COE would mean taxi, PHV and dealers will all have to compete COE from the same pool, that will push COE up to a new height.

90k coe will come back again! Lol.

[xul]

What happened to plans for the reverse? Ie take phv out of COE to join taxis

[Sdf4786k]

  On 5/14/2019 at 12:59 AM, 13177 said:

They should scare coe dropped too much, maybe they want the coe to maintain in high level?

[RogerNg_185295]

  On 5/14/2019 at 1:16 AM, 13177 said:

90k coe will come back again! Lol.

Mercedes n bmw will be best sellers if Coe shoots up

[Ct3833]

  On 5/14/2019 at 1:18 AM, xul said:

What happened to plans for the reverse? Ie take phv out of COE to join taxis

Ehh kopi shop talk having it that the plan has been scrapped because it is proven now that PHV alone is unable to push up COE price, so must bring taxi in the help bid up COE price.

  On 5/14/2019 at 1:22 AM, RogerNg_185295 said:

Mercedes n bmw will be best sellers if Coe shoots up

So there will be a few group of cars on the road moving forward.

1. Taxi

2. PHV

3. New premium BMW and merc

4. Many old COE cars

Group 4 will form a big population on the road which will be a new trend.

[RogerNg_185295]

  On 5/14/2019 at 1:34 AM, yishunite said:

Stupid move. But smart of gahmen to float rumour 1st to gauge public reaction with election coming... prolly will take place after election if they win 69% again ð

 

The dumb thing to put them in the Cat A bracket when taxis contribute far more to congestion and pollution than private owned cars. U own a car means u prolly working. So you drive to work, park, go home in evening. Maybe one more spin for errands then. But taxis and PHVs on the road all day long. So they drive up congestion way more than noncommercial car owners yet they pay effectively much less tax per km spent on the road

 

Ofcos cannot hurt Comfort Delgro bottomline too much since state owned monopolies are the lifeblood of sg economy ð

Taxis n phv cause more accidents on the roads. Some are fatal. Just look at the way those goondos drive. Kill people already still can give reason driver black out at the wheels

[Mockngbrd]

CCB PAP

[13177]

  On 5/14/2019 at 1:34 AM, yishunite said:

Stupid move. But smart of gahmen to float rumour 1st to gauge public reaction with election coming... prolly will take place after election if they win 69% again ð

 

The dumb thing to put them in the Cat A bracket when taxis contribute far more to congestion and pollution than private owned cars. U own a car means u prolly working. So you drive to work, park, go home in evening. Maybe one more spin for errands then. But taxis and PHVs on the road all day long. So they drive up congestion way more than noncommercial car owners yet they pay effectively much less tax per km spent on the road

 

Ofcos cannot hurt Comfort Delgro bottomline too much since state owned monopolies are the lifeblood of sg economy ð

Coe should shoot up even higher in coming bids even before they implemented this. Many people would be panic and go in to buy first.

[RogerNg_185295]

  On 5/14/2019 at 3:43 AM, awhtc said:

I thought the same author was asking car buyers not to rush in for COE just 1 week+ ago

 

The review is more likely to address the loss of government revenue from the pegging the taxis' COE to price of Cat A instead of Cat B as both categories are now more than $10k apart.

Don't rush to push COE prices higher

Resist the temptation to buy a car now - doing so would cause certificate of entitlement prices to rise further

 

https://www.straitstimes.com/lifestyle/motoring/dont-rush-to-push-coe-prices-higher

The author is just a pawn in the tightly controlled media in Singapore. He may have his personal views but ......