P2P driver numbers rise 8% in Q2 despite lukewarm demand

The sector facilitated an average of 606,000 daily trips last year.

The volume of active point-to-point (P2P) drivers increased by 8% year-on-year (YoY)  in the second quarter (Q2 2024) despite trip demand inching up 1%. This has moderated fares and earnings from the peak in early 2023, with surge prices and net ride-hail fares returning to 2022 levels. 

Seasonal fluctuations, such as increased demand during major events and festive periods, continue to impact fares and driver income, Senior Minister of State for Transport Dr. Amy Khor said in a response to Parliamentary questions on the sustainability, demand, and supply of the P2P transport sector.

In 2023, the P2P sector facilitated an average of 606,000 daily trips, served by approximately 67,000 taxis and private hire cars. 

Whilst the government monitors the sector closely, fares and the number of drivers are not regulated but are instead determined by market demand. When demand and fares rise, more drivers typically enter the market, while a drop in fares could lead to a reduction in drivers.

The Land Transport Authority (LTA) is reviewing the P2P sector and is looking into ways to reduce operating costs for drivers. 

This includes extending the statutory lifespan of taxis, with an expectation that operators will lower rentals for drivers. 

The LTA is also increasing enforcement against illegal P2P services by foreign vehicles, which drivers have raised concerns about. 

Additionally, the Ministry is working with operators and labour organisations to help drivers explore alternative employment opportunities through government support programmes.