Singapore proposes licensing regime for ride-hailing services

Singapore’s Land Transport Authority (LTA) has proposed an overhaul of point-to-point transport regulations, including the introduction of a new licensing regime for ride-hailing firms. It’s opening its plans up for public consultation.

The agency said its proposals are aimed at prohibiting both ride-hailing firms and traditional taxi companies from enforcing driver exclusivity arrangements that restrict drivers from working for rivals.

Taxis on the road in Chinatown, Singapore / Photo credit: viewapart / 123RF

LTA added that it “will make an exception for drivers who are employed by operators as employees, as employment provides greater job protection for drivers.”

Grab, which dominates Singapore’s ride-hailing market, was ordered to end its use of driver exclusivity conditions as part of an antitrust ruling regarding its acquisition of Uber’s regional operations last year.

An updated licensing framework will also help “provide sufficient regulatory oversight to protect the safety and interests of commuters and drivers” and “streamline regulations” to reduce operating costs where appropriate, the agency said.

Currently, only traditional taxi companies are licensed by LTA, but the proposals would see the existing Taxi Service Operator License replaced by a Street-Hail Service Operator Licence (SSOL) – allowing holders to provide “flag-down” taxi services – and a separate Ride-Hail Service Operator Licence (RSOL).

SSOL licensees will be required to own their vehicles and maintain a minimum fleet size, while LTA indicated that it will consider introducing a tiered system for the RSOL given the variety in size of operations between different ride-hailing players in the Singapore market.

“Larger operators” will be “subject to more regulatory requirements,” the agency said.

A Grab spokesperson told Tech in Asia that the company is “supportive of regulatory changes that will enhance commuter and driver welfare.”

“We are also heartened that the review will prohibit driver exclusivity arrangements for all players […] This will address current gaps in the industry, whereby taxi operators can dictate whether their drivers can receive fixed-fare ride-hailing jobs and other private-hire car operators can impose exclusive conditions on their drivers,” the company said.

Responding to Tech in Asia‘s request for comment on the LTA proposals, a spokesperson from Go-Jek said that it “believe[s] that a policy environment that protects commuters and drivers, as well as an open and contestable market, is integral to maintaining Singapore’s position as the hub for urban mobility in Southeast Asia.”

Members of the public have until February 21 to submit their comment on the proposals here.