The Land Transport Authority (LTA) of Singapore announced on September 13, 2023, that it is reviewing the regulatory framework for the point-to-point (P2P) transport sector, which includes both taxis and ride-hailing services. This review comes three years after the LTA implemented its licensing framework for these operators, reflecting a significant increase in daily trips—from 517,000 in 2020 to 613,000 in July 2023, marking an 18% rise.

Senior Minister of State for the Ministry of Sustainability and the Environment, Amy Khor, highlighted that while taxis remain crucial in high-demand areas like Changi Airport and for less tech-savvy commuters, there is an increasing preference for ride-hailing options among both drivers and passengers.

The LTA’s review will specifically target several areas, including:

Availability of P2P Services: Addressing supply issues, especially during late-night hours when demand spikes.
Service Resilience: Ensuring operators can maintain minimal disruption and downtime for their services.
Inclusivity: Enhancing the ability of transport services to meet the needs of various commuter groups, including wheelchair users and families with young children.
Chee Hong Tat, Senior Minister of State for Finance and Acting Minister for Transport, emphasized the importance of balancing the interests of operators, drivers, and commuters as part of the review process. The LTA plans to engage in discussions with tripartite partners, including the National Taxi Association and the National Private Hire Vehicles Association, to gather insights and recommendations.

In response to the LTA’s review, Yeo Wan Ling, an adviser to both associations, acknowledged the challenges faced by drivers, such as rising business costs, particularly in fuel and vehicle rentals, and the demands of longer working hours post-pandemic. She noted significant shifts in the P2P driving landscape, including an aging driver demographic and the necessity for drivers to adapt to new technologies, which may be unfamiliar to older workers.

The review aims to ensure that Singapore’s P2P transport services remain effective, inclusive, and capable of adapting to the evolving needs of its citizens.