Taxi
The taxi prices in Singapore is not flexible enough (I didn't say that they are fixed by some company enjoying monopoly and BB support - the 2nd B stands for brother).
How taxi companies set the meter prices I do not understand. Do they get LTA approval (like buses and MRT) to set the boarding price at $2.50 or $3.00 or do they just implement whatever they like? I do not think LTA should get involved to approve this because taxi is considered as operating in a free market as oppose to buses and MRT, which are for the ultramasses. Taxi is a "private service".
For now, the leading company sets the pricing and then the smaller ones follow. This creates a homogenous market. I do not know whether differentiation is impossible or that it is hampered by the monkey-see-monkey-do mentality. For the consumer at this moment, it doesn't matter whether he takes a blue taxi or a red taxi - the price is the same and the comfort level (no pun intended) does not vary noticeably - as long as he is able to get one when he wants one.
So comes the problem - how to get one? If one decides to take the taxi, he has already made up his mind to pay a premium for his journey. Otherwise there are buses and trains with predictable timetables. But when the willing payer cannot find a taxi, he calls. Unfortunately, there are other willing payers as well. Add that up, it becomes a demand. To tap into these demands, taxi drivers do what they can do within their means - wait for the beepers or negotiate a price. The call center efficiency has been validated umpteen times at the 9pm time slot. Taxi drivers are more innovative than that, and they negotiated a willing-buyer-willing-seller deal. Unfortunately, this falls outside the "legal" limits. The willing buyer cannot get his taxi and the willing seller is restricted by the "law". Lose-lose situation? I say yes.
One suggestion is that the red or pink or gold colour taxi can have a different pricing system. Start fare at $5, flat fee for on-call or off-call, CBD to anywhere at fixed price $20, etc, etc...Compete in a different manner instead of relying on ONLY the call system. Call system benefits only the company which enjoys the economy of scale. Consumers have the rights to pay whatever he can afford. Keep the pricing system open and the demand and supply will balance out.
The place I stayed in has a splendid taxi system. The town has a main road and the taxis ply up and down along this road. You can take a taxi to anywhere within the service area and the cost is a flat fee of 1.50. Anyone can board the taxi anytime and sometimes you get to share the taxi with a stranger, sometimes 3 strangers.
How taxi companies set the meter prices I do not understand. Do they get LTA approval (like buses and MRT) to set the boarding price at $2.50 or $3.00 or do they just implement whatever they like? I do not think LTA should get involved to approve this because taxi is considered as operating in a free market as oppose to buses and MRT, which are for the ultramasses. Taxi is a "private service".
For now, the leading company sets the pricing and then the smaller ones follow. This creates a homogenous market. I do not know whether differentiation is impossible or that it is hampered by the monkey-see-monkey-do mentality. For the consumer at this moment, it doesn't matter whether he takes a blue taxi or a red taxi - the price is the same and the comfort level (no pun intended) does not vary noticeably - as long as he is able to get one when he wants one.
So comes the problem - how to get one? If one decides to take the taxi, he has already made up his mind to pay a premium for his journey. Otherwise there are buses and trains with predictable timetables. But when the willing payer cannot find a taxi, he calls. Unfortunately, there are other willing payers as well. Add that up, it becomes a demand. To tap into these demands, taxi drivers do what they can do within their means - wait for the beepers or negotiate a price. The call center efficiency has been validated umpteen times at the 9pm time slot. Taxi drivers are more innovative than that, and they negotiated a willing-buyer-willing-seller deal. Unfortunately, this falls outside the "legal" limits. The willing buyer cannot get his taxi and the willing seller is restricted by the "law". Lose-lose situation? I say yes.
One suggestion is that the red or pink or gold colour taxi can have a different pricing system. Start fare at $5, flat fee for on-call or off-call, CBD to anywhere at fixed price $20, etc, etc...Compete in a different manner instead of relying on ONLY the call system. Call system benefits only the company which enjoys the economy of scale. Consumers have the rights to pay whatever he can afford. Keep the pricing system open and the demand and supply will balance out.
The place I stayed in has a splendid taxi system. The town has a main road and the taxis ply up and down along this road. You can take a taxi to anywhere within the service area and the cost is a flat fee of 1.50. Anyone can board the taxi anytime and sometimes you get to share the taxi with a stranger, sometimes 3 strangers.
Labels: singapore
posted by cif5000 at 8:56 AM
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