Singapore tightens grip on taxi apps by issuing regulations

Singapore’s Land Transport Authority (LTA) will be regulating third-party taxi booking apps such as Uber and GrabTaxi with a “basic regulatory framework.” According to its announcement, the framework is the result of consultation with commuters, the National Taxi Association, third-party taxi booking services, and taxi companies over the past year, and will likely take effect in the second quarter of next year.

As can be seen in their Facebook post above, there are five conditions that taxi apps need to adhere to in order to continue their operations legally in the island-state.

First, they will have to register officially with the LTA, upon which they will receive a certificate lasting for three years. Second, they will only be allowed to dispatch licensed taxis and drivers – defined as those holding valid Taxi Driver’s Vocational Licences.

Third, all information on fare rates, surcharges, and fees payable for the journey will have to be disclosed to users before they accept the booking. Booking fees cannot be higher than those charged by taxi companies. Fourth, taxi apps won’t be allowed to require users to specify their destinations before they can make bookings, in order to prevent drivers from picking and choosing. Finally, they will all have to provide customer support, such as lost-and-found services and platforms for enquiries or complaints.

The conditions will certainly affect the local operations of the respective taxi apps. For example, GrabTaxi and EasyTaxi currently require their users to enter a specified drop-off point before booking, so they’ll probably have to modify their apps to continue operating.

Mike Brown, Uber’s regional general manager, says that Uber is happy with the developments:

Uber welcomes the LTA’s announcement to introduce a new regulatory framework for 3rd party taxi booking apps; this is great news for residents and visitors to Singapore and especially for taxi drivers. We appreciate that the LTA has acknowledged the benefits our technology brings, and like Uber, is putting the interest and safety of consumers and drivers first.

GrabTaxi VP of marketing Cheryl Goh states that they are compliant with most of the regulations, and will continue to work with the authorities to remain that way:

There are no issues with implementation as we’re already compliant with most of the regulations. We believe that these regulations are a progressive development and a step in the right direction. Third party booking apps are now formerly acknowledged as a legitimate service that helps commuters. We are committed to continue working closely with the authorities to help improve Singapore’s public transportation system.

Managing director of Easy Taxi Singapore, Jianggan Li, believes that the framework set by LTA is one of the more open and encouraging ones as compared to other countries. He reveals that there will be minor product adjustments, such as making the destination field optional for passengers, and is confident about meeting the deadline of the second quarter of 2015: