You won't believe this is how fierce the new taxi standard is

Operators failing twice won't expand their fleet.

According to Nomura, taxi operators are measured by 2 indicators: 1) % of taxis on the road during peak hours, and 2) % of taxis with minimum daily mileage of 250km. The standards are phased in across 2013-2015, with the standards increasing each year.

Here's more from Nomura:

Note that the taxi availability standards will be applied to individual taxi operators based on their respective fleet size. We imagine this means a lower standard for the smaller operators, just like what we see for the Quality of Service (QOS) standards currently applied to taxi operators.

Carrot for taxi operators

• Picking up passengers: to allow taxi drivers to pick up/drop off passengers along all roads within CBD except for those with bus lanes (during their operation hours) and certain roads which are dangerous to stop at.
• Matchmaking drivers: LTA to set up online portal to help match hirers looking for relief drivers. Also be used to disseminate info relevant to Taxi Driver’s Vocational License holders.
• Show them the money: Give 50% off TDVL renewal fee, equivalent to S$20 over 3 years. Waiver on certain modules of the mandatory refresher course.

Stick for taxi operators

• Financial penalty: None for the first 6 months if fail to meet standards. LTA will review in June 2013
   
• Fleet growth restriction: If operators don't achieve 4 out of 6 “Passes” over a 6-mth period, they will not be allowed to expand their fleet in the same 6-mth period next year. Overall growth rate will still be capped as 2% p.a.