Number of taxi, private-hire drivers grew 'much faster' than ridership, resulting in lower earnings: Amy Khor

[kobayashiGT]

Source: https://www.todayonline.com/news/number-taxi-private-hire-drivers-grew-much-faster-ridership-resulting-lower-earnings-amy-khor-2481191

By Justin Ong Guang-Xi

Published September 10, 2024

Updated September 10, 2024

SINGAPORE — With the recent increase in taxis and private-hire cars, the earnings of these drivers have  “moderated” as passenger demand has not risen as much, said Senior Minister of State for Transport Amy Khor. 

Between the second quarter of 2023 and the second quarter of this year, the number of active private-hire cars and taxis rose by 8 per cent. However, the average daily number of passenger trips increased by only 1 per cent during the same period.

“That obviously means that some drivers will see a decline in earnings,” Dr Khor said in parliament on Tuesday (Sept 10) in response to questions about supply and demand in the point-to-point transport sector.

She noted that average surge prices and net ride-hail fares had declined in the first half of 2023 from a peak at the start of that year. Prices are now back to levels seen in the first half of 2022.

This echoes the concerns of private-hire car drivers that CNA spoke to last month. Grab and Gojek drivers said they noticed a dip in their incomes over the past six months, citing factors such as a fall in the number of passengers, as well as an increase in competition from other platforms. 

Grab said at the time that the income dip is "seasonal". 

Dr Khor said on Tuesday that point-to-point fares are also subject to seasonal fluctuations in demand. 

She noted, for instance, that in months when there are major events such as the Taylor Swift and Coldplay concerts, or during festive periods such as Chinese New Year, there tends to be an increase in travel among locals and visitors, which leads to higher demand and higher fares. 

“Conversely, demand tends to decline during the school holidays when many Singaporeans are abroad,” she said. “These seasonal effects are another source of fluctuations in drivers’ income.”

FARES DECIDED BY DEMAND AND SUPPLY 

While the authorities watch developments in the point-to-point sector closely, they do not set fares as these are determined by transport operators based on market competition, said Dr Khor. 

“We also do not cap the number of P2P (point-to-point) drivers, but instead allow the supply of P2P drivers to move in tandem with commuter demand and price signals,” she said. 

Thus, the appropriate level of supply for the sector depends on commuter demand and the fares they are willing to pay, she said. 

"When demand is higher and fares increase, we can expect more drivers to enter the market. Conversely, when there is excess supply of drivers, fares will drop and some drivers may decide to exit the market," she added.
 

MP Desmond Choo (PAP-Tampines) asked Dr Khor on her ministry’s views on how they can support drivers during periods of contracted low fares, where anecdotally, some drivers have reported an over 30 per cent drop in earnings in the past six months. 

She responded that this dip in earnings needs to be taken “into context” — that there were periods such as at the end of the Covid-19 pandemic in 2022, as well as during festive periods and concerts early this year, where demand was high and drivers earned more. 

“Hence, I think it is really important to really look at the total earnings across time instead of just lower fare periods,” she said. 

Dr Khor added that the Land Transport Authority (LTA) will continue to look at ways to support the “smooth and efficient functioning of the market”. 

These include measures to reduce operating costs, such as the extension of statutory lifespan for taxis which was announced earlier this year. 

“The operators should pass through these cost savings to drivers via lower rentals,” she said. 

 

[13177]

You can see on the road, almost like every car is PHV, plus many taxis also. Surely supply more than demand la, esp taking taxi and PHV is not cheap now.

[Inlinefour]

moving backwards to the pirate teksi era 

 

jobs for ft 

 

phv and ns for sinkies 

 

what to do 

 

better stop posting 

 

faster go deliver parcels 🙉🙊🙈

 

wait customer complaint 😬😬😬

[Throttle2]

Only a stupid dumbass statesman would miss the key finding of the study….

The more important issue is not the small reduction in earnings, it is the fact that there are so many more of taxis and phvs on the roads.

why? Becos much of thats probably the result of the loss of other jobs, many of which could be higher value, my guess. 🙄 
 

same goes for higher number of property agents in recent years.  Why?  Becos there is a lot of cream to be licked off fairly eazily.  If you study so many years in Uni and come out to be an engineer earning $4kpm, you may very well go and become a “realtor” for a possible multiple of that amount.   Lets admit to the facts, allowing agents to charge 2%? 3%? Profit share?   Agents like that are creaming the public and then showing off on social media.    
 

Understand the findings of the study deeper.   Dont just throw stats.  Dont just cut ribbons. Dont just pretend to fry eggs. Dont act like professor as if you can predict the market.  You are not worth peoples money, statesman, property agents, “bankers” and car dealers alike.  Just saying….😚

Edited September 12 by Throttle2

[Mustank]

[BanCoe]

I prefer to take the MRT (kenna walk a little bit...... healthy) .... why pay crazy $30-$40 fares at peak hours......Gov has done a reasonably good public tspt ... why go for PHV ... unless if its "office pay one" which is most likely the case......    

[Volvobrick]

On 9/12/2024 at 11:44 AM, Throttle2 said:

Only a stupid dumbass statesman would miss the key finding of the study….

The more important issue is not the small reduction in earnings, it is the fact that there are so many more of taxis and phvs on the roads.

why? Becos much of thats probably the result of the loss of other jobs, many of which could be higher value, my guess. 🙄 
 

same goes for higher number of property agents in recent years.  Why?  Becos there is a lot of cream to be licked off fairly eazily.  If you study so many years in Uni and come out to be an engineer earning $4kpm, you may very well go and become a “realtor” for a possible multiple of that amount.   Lets admit to the facts, allowing agents to charge 2%? 3%? Profit share?   Agents like that are creaming the public and then showing off on social media.    
 

Understand the findings of the study deeper.   Dont just throw stats.  Dont just cut ribbons. Dont just pretend to fry eggs. Dont act like professor as if you can predict the market.  You are not worth peoples money, statesman, property agents, “bankers” and car dealers alike.  Just saying….😚

Interestingly I received a brochure with a fixed price commission like 5k for HDB, 9k for condo, 14k for landed. Just for guiding the seller on the process, no leg works. Host own viewing. 

Of course still too high of course to me. 3k is what the service is worth whatever the value of the property.

 

[Lala81]

The salary for a PHV driver is relatively higher pre over supply compared to a lot of other jobs. It pays better than driving a bus or logistic operator (van driver etc)?

 

[13177]

On 9/12/2024 at 1:14 PM, BanCoe said:

I prefer to take the MRT (kenna walk a little bit...... healthy) .... why pay crazy $30-$40 fares at peak hours......Gov has done a reasonably good public tspt ... why go for PHV ... unless if its "office pay one" which is most likely the case......    

Which company pay for their staff taking PHV ah? Unless it is for official trips. But nowadays i see people morning take PHV to work de. Maybe these people think that even paying crazy peak hours fares but still cheaper than spending money on a car. Lol.

Take MRT not bad la, at least won't get stuck in traffic jam and getting from one place to another place during peak hours faster than taking a car. But your house must not be far from MRT, if not take MRT also take up lots of time.

[13177]

On 9/12/2024 at 1:23 PM, Volvobrick said:

Interestingly I received a brochure with a fixed price commission like 5k for HDB, 9k for condo, 14k for landed. Just for guiding the seller on the process, no leg works. Host own viewing. 

Of course still too high of course to me. 3k is what the service is worth whatever the value of the property.

 

No need leg works and arrange for viewing, just guide seller on the process, even $5k consider quite high le. Like easy money lo. 

[Throttle2]

On 9/12/2024 at 1:23 PM, Volvobrick said:

Interestingly I received a brochure with a fixed price commission like 5k for HDB, 9k for condo, 14k for landed. Just for guiding the seller on the process, no leg works. Host own viewing. 

Of course still too high of course to me. 3k is what the service is worth whatever the value of the property.

 

Yeah HDB should be $1500

condo $2000

lamded $2500

[13177]

On 9/12/2024 at 2:25 PM, Throttle2 said:

Yeah HDB should be $1500

condo $2000

lamded $2500

Still easy money just to guide the process.

[kobayashiGT]

On 9/12/2024 at 2:07 PM, 13177 said:

No need leg works and arrange for viewing, just guide seller on the process, even $5k consider quite high le. Like easy money lo. 

they got take the CEA license mah, they can help with the paperwork. 

Afterall, all the procedure is the same right? they should charge like this.

HDB - $2000
Private - $3000

Use my account for listing in Propertyguru - $150 per post. 

 

Itemize the cost mah. that's what my clients is doing to me. 😅

[Volvobrick]

On 9/12/2024 at 2:35 PM, 13177 said:

Still easy money just to guide the process.

Must include photo taking lah! If not minus one zero. 

[Volvobrick]

On 9/12/2024 at 2:36 PM, kobayashiGT said:

they got take the CEA license mah, they can help with the paperwork. 

Afterall, all the procedure is the same right? they should charge like this.

HDB - $2000
Private - $3000

Use my account for listing in Propertyguru - $150 per post. 

 

Itemize the cost mah. that's what my clients is doing to me. 😅

Yes got lah. You qualified agent? If so will pay the 150 if I ever want to sell (unlikely though, I like my place). 

[Voodooman]

Will COE drop? 

There is something fundamental wrong when so many people choose to drive Grab for a living knowing full well robo-taxi is just a few years away. 

PS. Above exclude retirees doing it for pocket money.

Edited September 12 by Voodooman

[13177]

On 9/12/2024 at 2:36 PM, kobayashiGT said:

they got take the CEA license mah, they can help with the paperwork. 

Afterall, all the procedure is the same right? they should charge like this.

HDB - $2000
Private - $3000

Use my account for listing in Propertyguru - $150 per post. 

 

Itemize the cost mah. that's what my clients is doing to me. 😅

Hearsay procedure for private is easier than HDB. Even for HDB also not say very difficult. Some people not CEA licence also know how to do the procedure. And some who is CEA licence can also not 100% familiar with the whole procedure and might overlook some info.

[13177]

On 9/12/2024 at 2:51 PM, Voodooman said:

Will COE drop? 

There is something fundamental wrong when so many people choose to drive Grab for a living knowing full well robo-taxi is just a few years away. 

PS. Above exclude retirees doing it for pocket money.

If robo-taxi really just a few years away, then very soon driver job will become extinct next time when other commercial vehicle can also become robotic.