Uber or GrabTaxi: a Singapore cabby’s view

Image credit: Emanuele

It was 5.30am on 11 November in Singapore. I was rushing to catch the red-eye flight to Jakarta for the anticipated Tech In Asia Jakarta 2015 event. To ensure that I don’t miss the flight, I downloaded both GrabTaxi and Uber the day before in hopes of using them to get my transport (okay, yes, don’t be shocked. It is my first time using those apps).

I tried to get an Uber taxi but to no avail. I then tried GrabTaxi using cash as an option and I received a pickup which arrived in less than five minutes! Rushing out and puffing with my bag and jacket in tow, I entered the cab. That started a 30-minute journey which turned into a journalistic opportunity to understand the taxi app market through the eyes of a Singapore cabby.

The finances and life of driving a cab in Singapore

Before I get into the conversation, allow me to introduce Jason. Jason is your typical Singaporean cabbie, always very talkative and willing to share any issue under the sun, with the flair of dramatics and flowery Singlish curses in between talking about his taxi company and the government.

Jason told me he rents his taxi from Premier Taxis, one of the smaller players with 2000 cabs and he pays US$85 day to rent his cab. There are 28,000 taxis in Singapore. He shares his cab with a relief driver who takes the cab on a split-shift basis, running eight hours or so a day.

The taxi company will automatically deduct US$85 daily from his bank account. On top of that, he has to pay for diesel in cash or via the ATM, which is US$0.56 a litre at his company fuel depot near the airport.

Three-in-one mix: GrabTaxi, Uber and call center

“Wow uncle, you are so efficient in arriving here with Grabtaxi. Do you get a lot of bookings with that app?” I asked Jason when I entered the cab.

Jason leaned back to give me a clear view of two smartphones mounted next to his steering wheel. There were charging cables connected from the smartphones to the cigarette lighter for power. He proudly mentioned that,

I get bookings from both apps. They generally assist me to get passengers where necessary. I also get bookings from the call center. I saw you on Uber but I decided to ignore you for a few reasons.

For those reasons, read on.

Cash or credit

“Uncle, was it because you wanted cash rather than credit card? Uber only accept credit cards. Did this deter you to accept Uber bookings?” I asked him.

Jason explains that it depends on his finances for that day. “Both GrabTaxi and Uber don’t deduct any fee for accepting credit cards, so that is fine. However, GrabTaxi takes 2 working days and Uber 3 working days respectively to deposit the funds to our bank account,” he explains.

This can be a big issue if he is cash-strapped, which happens very often. With the daily deduction of his taxi rental, he has to ensure he has sufficient funds.

Strategy in cab driving in Singapore

Effectiveness of taxi apps

Ending thoughts