Cab companies get go-ahead for surge pricing in Singapore

Commuters in Singapore will now have to shell out more money as taxi companies have been given permission to introduce surge pricing, for trips booked through mobile applications.

Surge pricing in singapore
Surge pricing for taxis have been introduced in Singapore which make travel more costlier. Photo courtesy: taxi singapore

On Friday, Land Transport Authority (LTA) and Public Transport Council (PTC) issued a joint statement stating that they have accepted proposals from taxi companies and popular ride-hailing platform Grab.  

“The companies have informed the LTA and PTC that this will be introduced as an additional option for commuters to book a taxi, on top of the current metered fare taxi bookings,” the statement said. “We have no objections to the proposals."

Surge pricing will make the price of a taxi trip costlier according to the demand on the roads at the time. This means that commuters will pay more during peak hour and high-demand.

Grab, currently the only platform offering this price model, has announced that it will launch a new service with surge pricing for taxis with fixed, upfront pricing. This differs from its current taxi-booking service, GrabTaxi, which charges metered fares. 

Though taxi services are being regulated by the LTA, taxi companies have been able to set their own fares since 1998. However, in 2016, the companies were required to standardise some parts of the fares.

Ashraf Jamal
Ashraf Jamal – Senior Writer

Ashraf Jamal brings a rare depth to writing equipped with a degree in journalism, a postgraduate degree in political science, and a degree in law from the Allahabad University. His experience includes editing and publishing the Northern India Patrika and writing for Times of India for almost a decade covering just about any topic under the sun including NRIs and Indian diaspora.


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