Private limousine services will not be regulated: Lui
Uber, a third-party taxi booking app in Singapore. Photo: Reuters
SINGAPORE – Private chauffeured services are not taxis, but are becoming increasingly available via third-party taxi booking apps.
And the fact that the law covering the emergence of this new technology in the taxi landscape will not be regulating private limousine services booked via such apps just yet was cause for concern among Members of Parliament (MPs) debating the legislation yesterday.
For now, operators must make it clear upfront that these are not taxi services, Transport Minister Lui Tuck Yew said as the Third-Party Taxi Booking Service Providers Bill was approved by Parliament.
For instance, an operator such as Uber has the Uber Taxi app and, for budget limo hires, the UberX app.
But with some commuters caught unaware by the expensive charges levied for these services, and taxi drivers complaining about private drivers at taxi stands, three of the four MPs who spoke during the debate felt that more should be done.
In response, Mr Lui stressed that taxi services and chauffeured vehicle services remained two distinct industries, “even though the line today is no longer as clear as it was before”.
He noted that chauffeured vehicle services are not new: People have used these for corporate trips or special occasions such as weddings.
“But what’s different today is that the technology has made these services much more easily accessible and easier in terms of matching passengers to chauffeured cars more seamlessly, just like how technology has improved the matching of taxis to commuters,” he said.
Still, Mr Lui acknowledged the concerns and pointed to existing laws that require such services to be pre-booked.
Also, commuters cannot hail them in the streets, and private cars cannot be used for chauffeured services.
With the new regulations, a third-party taxi booking service provider must distinguish its various services through distinct icons and by highlighting the different charges clearly and up front to customers.
If commuters request for taxis, the service providers must despatch licensed taxis with drivers who hold valid vocational licences.
MP Ang Hin Kee (Ang Mo Kio GRC), who is also executive adviser of the National Taxi Association, said: “It’s important that education efforts be enhanced and enforcements be undertaken so that there is no confusion among commuters, taxi drivers and these drivers as to what the regulations relating to these two different types of transport services are.”
Mr Lui noted that the Land Transport Authority has been stepping up checks, for instance, on one-man private operators waiting at taxi stands.
MP Seng Han Thong (Ang Mo Kio GRC) suggested that private limo drivers must hold a vocational licence or certificate to better safeguard commuters’ interests.
In reply, Mr Lui said the authorities will monitor the need to regulate these drivers, but that the key is now to encourage training and improve the drivers’ competencies.
Among other issues put forth, Non-Constituency MP (NCMP) Lina Chiam questioned the need for regulations that deviate from free market principles, saying that this can be best decided by users.
Fellow NCMP Gerald Giam asked why the authorities will issue licences based on demand for third-party bookings instead of letting potential entrants make their own assessments.
Mr Lui, who described the Bill as a “light-touch approach”, agreed that potential entrants must still assess the market.
But with cabbies worried about not receiving prompt payment of fares from operators, the latter have to be held financially liable so drivers are treated fairly.
He said: “It’s no good for the taxi industry if we just let in any and every applicant, even though it may be below the threshold to enter the market.”
