LTA to end Smart's taxi service operator licence

Due to 'deterioration' in service performance.

In a release, the Land Transport Authority (LTA) has informed Smart that its Taxi Service Operator Licence (TSOL) will not be renewed when it expires on 30 September 20131. The decision is based on a review of Smart’s compliance with the taxi Quality of Service (QoS) standards and its ability to meet the minimum requirements for TSOL renewal.

Deterioration in Smart’s service performance

Smart has had multiple failures in its QoS performance over the past two-and-a-half years. For example, it has consistently failed to meet the call booking cater rate2 standard throughout the entire period.

Call booking is an important part of the taxi QoS standards as it gives commuters the assurance that they will be able to get a taxi for an urgent and/or important journey. Call booking standards are also an efficient way to match taxi supply with demand and thus reduce the empty cruising of taxis.

Smart has also failed in other QoS standards such as accident rate and first inspection passing rate, which are a concern as this affects the safety of taxi commuters.

Lack of commitment by Smart to meet regulatory conditions

Taxi companies were notified in March 2012 that they had to fulfil the following requirements that are put in place to enhance the overall taxi service levels, before their TSOLs would be renewed:

Hence, LTA’s assessment is that Smart will not be able to meet the conditions for TSOL renewal, given its past performance and its lack of demonstrable commitment to improving its current performance against the TSOL renewal conditions.