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     FrontPage Edition: Wed 12 December 2007

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 Comfort and CityCab taxi fares to go up on 17 Dec 2007

Source: www.delgro.com.sg

COMFORTDELGRO OVERHAULS TAXI FARE STRUCTURE

ComfortDelGro Corporation is revamping its taxi fare structure to better match the demand for and supply of taxi services at different times of the day.
The changes, which will come into effect on 17 December 2007, are aimed at making taxis more readily available to commuters when they need it most.
These fare changes are the result of an in-depth review of the taxi industry by the Group, taking into account suggestions and feedback from the public which were received at the Focus Group Discussions held earlier this year by the Land Transport Authority as part of the Land Transport Review.
The changes, which also factored in feedback from the taxi associations, took into consideration the higher operating costs of taxis and serve to address the issues facing the taxi industry including:
  1. • Addressing commuters' concern on the difficulty in getting a cab in the city in the evening
  2. • Simplifying taxi fares for the convenience of commuters
  3. • Encouraging call booking to better match the demand and supply of taxis
Encouraging taxis to take passengers from the city area
a. City Area Surcharge Adjustment

City Area Surcharge

Current

Revised

$1

Mon-Thu, 5pm-8pm

Fri & Sat, 5pm-11:30pm

$3

Mon-Sat, 5pm-midnight

It is a common complaint among commuters that they are unable to get a cab from the city area during evening peak hours. One reason for this is that many taxis leave the city centre for the suburbs and drivers find little incentive to drive all the way back to the city to pick new passengers up.
This situation is further exacerbated by the fact that demand for taxis generally spikes in the city centre in the evenings.
To attract drivers back to the city centre, the Peak City Area Surcharge will be raised from $1 to $3. This surcharge is payable on Mondays to Saturdays, between 5pm and midnight.
The Group is aware that with the higher City Area Surcharge, it is possible that taxi drivers may refuse to pick up passengers from taxi stands located at the city fringe. Hence we will work closely with the Land Transport Authority (LTA) on possible ways to address this issue.
b. City ERP Rebate to drivers
Many drivers are reluctant to enter the city area during the evening ERP hours on an empty cab as they are not willing to pay the charges.
To provide drivers with the added incentive to do so, ComfortDelGro will give all drivers who are unable to get a passenger within 15 minutes of entering the ERP zone an ERP rebate. This is possible through the use of our Escalade and location tracking system.
Simplifying fares
a. Late Night Surcharge

Late Night Surcharge

Current

Revised

11:30pm-11:44pm 10%

11:45pm-11:59pm 20%

12:00am-12:59am 35%

01:00am-05:59am 50%

12:00 am -05:59am 50% of metered fare

The Late Night Surcharge will be revised back to 50% of the metered fare between midnight and 5.59am. This revision should be viewed in conjunction with the City Area Surcharge which ends just as the Late Night Surcharge begins.
In the past, when the Late Night Surcharge was 50% of the total metered fare, there were complaints of “disappearing” taxis. This is not expected to occur with the revision given that the City Area Surcharge will be in force right till midnight, giving little reason for taxi drivers in the city to “hide”.
b. Peak Hour Fare Changes
 

Peak Period Charges

Current

Revised

$2 flat rate

Mon-Fri, 7:00am-9:30am

Mon-Sat, 5:00pm-8:00pm

(not applicable on Public Holidays)

35% of metered fare

Mon-Fri, 7:00am-9:30am

Mon-Sat, 5:00pm-8:00pm

(not applicable on Public Holidays)

Instead of a $2 flat rate Peak Hour Surcharge, the metered fare during the peak hours will be adjusted to include a premium of 35%. This will be automatically computed as part of the metered fare – a detailed breakdown of which will be shown on the receipt to ensure transparency.
Flag down fare increased

Basic Fare

Current

Revised

Flag Down: $2.50 for 1st km

1km to 10km: $0.10 for every 210m

Above 10km: $0.10 for every 175m

Waiting time: $0.10 for every 25sec

Flag Down: $2.80 for 1st km

1km to 10km: $0.20 for every 385m

Above 10km: $0.20 for every 330m

Waiting time: $0.20 for every 45sec

The flag down fare, the distance rate and the waiting time will be adjusted to more accurately reflect the cost of travel. With the changes, an average 9km trip will cost $8.40 compared to the current $7.65, representing an increase of 10%.
Encouraging call booking

Current Booking Fee

Current

Revised

Prime Time: $4

Mon-Fri

7:00am-9:30am

5:00pm-11:00pm

Non-Prime Time : $2.50

All other times including Sat, Sun & Public Holiday

Prime Time: $3.50

Mon-Fri

7:00am-9:30am

5:00pm-11:00pm

Non-Prime Time : $2.50

All other times including Sat, Sun & Public Holiday

 

Booking fees for all ComfortDelGro taxis will be reduced from $4 to $3.50 during the prime hours. Booking charges during non-prime hours will remain unchanged.
The changes in fare structure will raise the cost of taxi services in Singapore and differentiate taxi services from public transport services like bus and rail which do not offer customers a point-to-point dedicated service.
Under the new pricing structure, the bulk of ComfortDelGro’s taxi passengers – those who travel during off-peak hours - will pay 10% more in fares.
All other passengers are expected to pay between 18% and 49% more, depending on whether they hail a cab from the city or the suburbs.
The greatest increase will be for trips made in the city from Mondays to Thursdays, between 8pm and midnight. The cost of an average 9km trip out of the city during this peak period will cost about $11.40 compared to about $7.65 currently.
ComfortDelGro CEO (Taxi Business), Mr Yang Ban Seng, said: "One of the top grouses of taxi commuters is the difficulty of getting a taxi during peak periods particularly in city areas and shopping belts. We have been looking at ways to best address this issue and we think this fare revamp will better match supply and demand of taxis. Our aim is to try and ensure that more taxis will go to areas where they are needed most and at the times they are wanted most."
More.....

Source: www.delgro.com.sg Media Release 10 Dec 2007

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