Complex taxi flag-down rates here to stay, says LTA

But other fee components will be standardised.

After consultations with the public and transport operators, the Land Transport Authority (LTA) and the Public Transport Council (PTC) today stated that some parts of the taxi fare structure will be standardised while complex flag-down rates will be retained.

The LTA stated that while some commuters suggested standardising flag-down fares to a single rate to minimise confusion, taxi companies indicated that harmonising flag-down fares will result in higher rates for all cabs.

Flag-down fares currently range from $3.20 to $5.00. Standard taxis, which make up about 95% of the total taxi population, have a flag-down fare ranging from $3.20 to $3.90. More than half of standard taxis charge the lowest flag-down fare of $3.20. Premium taxis, on the other hand, charge a flag-down fare ranging from $3.50 to $5.00.

“As mandating the harmonisation of flag-down fares may lead to higher flag-down fares for commuters, we will leave them as they are for now. Over time, taxi companies may, on their own accord, adjust and harmonise flag-down fares within their own fleets in response to market conditions,” stated the LTA.

While flag-down fare structures will not be changed, the PTC will nonetheless require taxi companies to standardise the other taxi fare components, namely, the unit fares, surcharges, booking fees and additional passenger fees.

Unit fares will be based on every 400 metres travelled after the first kilometre2 to the tenth kilometre; every 350 metres travelled above 10 kilometres; and every 45 seconds of waiting time.

Surcharges will not be removed, but taxi companies will be required to levy the same surcharge across all its taxi models and across all taxi companies.

The PTC will require the timings used for defining peak-period bookings and advance bookings to be the same across all taxi companies. Each taxi company will be required to have only one booking fee each for peak-period, off-peak and advance bookings for all its standard taxis; and likewise for all its premium taxis

The proposed requirements are expected to be implemented in the second half of 2015 after the necessary legislative processes are completed.