ComfortDelGro, one of Singapore’s prominent transportation service providers, has announced significant revisions to its taxi fare structure in a bid to assist taxi drivers in mitigating the impact of escalating operating expenses attributed to soaring fuel prices, high inflation, and the anticipated Goods & Service Tax (GST) hike. The adjustments, comprising fare increases and the introduction of new surcharge hours, are scheduled to take effect at 6:00 am on 13 December 2023.
$0.50 increases in flag down fares
ComfortDelGro’s current fleet of taxis, excluding limousine taxis, will experience a S$0.50 increase in flag-down fares and a one-cent increase for distances and waiting time fares. This adjustment encompasses popular taxi models such as the Hyundai i40, Hyundai Ioniq, Hyundai Kona, BYD E6, Toyota Prius, and Toyota Sienta taxis.
Limousine taxis will maintain their revised flag-down fares, implemented on 30 November 2023. However, distances and waiting time fares for Limousine taxis will be adjusted to S$0.36 from S$0.35. For detailed fare structures, please refer to Annex 1 (see below).
With this fare adjustment, the estimated fare for a 10km off-peak normal taxi trip is projected to increase by 6.8%, amounting to S$0.94, raising the total from S$13.80 to S$14.74.
Peak hour surcharge extended
As part of the comprehensive fare adjustment strategy aimed at addressing increased taxi demand, ComfortDelGro will extend the evening peak hour surcharge for all taxis by one hour, covering the period from 5:00 pm to 11:59 pm, effective every day of the week, including public holidays. Additionally, a new peak hour surcharge will be introduced from 10:00 am to 1:59 pm on Saturdays, Sundays, and public holidays. For further details, please refer to Annex 2.
Cabbies earning impacted
Mr Tommy Tan, CEO of ComfortDelGro’s Taxi Business, emphasized the necessity of this move, stating, “For the past few years, our cabbies’ earnings had been impacted first by the pandemic, and then by higher operating expenses due to an increase in fuel prices and high inflation. This carefully considered move to update our fare structure is necessary. It ensures that our cabbies receive fair earnings with the rising cost of operations.”
Tan highlighted the importance of reviewing peak hours to meet commuter needs during increased demand, expressing appreciation for commuters’ understanding and support during this change.
Rental waivers
In support of its cabbies, ComfortDelGro has been providing rental waivers since the onset of the pandemic in April 2020 and continues to offer a 10% rental waiver today. The Company collaborated with the National Taxi Association (NTA) to propose these fare changes, receiving the association’s support in acknowledgment of the challenges faced by taxi drivers.
Ms Yeo Wan Ling, Adviser to NTA, stressed the significance of the fare adjustment, noting, “The rise in the fare adjustment is important for our taxi drivers who are also struggling with a higher cost of living and operating cost due to higher fuel prices.”
Ms Yeo also highlighted the impending GST increase in 2024 as an additional factor contributing to the challenges faced by taxi drivers, impacting their rental, food, and parking expenses, among others. She emphasized that the fare increase will translate into higher take-home pay for taxi drivers, allowing them to better support their families.
Welcome move
In response to the fare adjustments, Cabby Raymond Ong shared, “In recent years, the rising cost of living and operational expenses have eaten into cabbies’ earnings. The impending GST increase in 2024 also adds to my concerns and worries. This welcome adjustment not only provides timely relief from the impact of the GST hike but also serves as a much-needed measure to support cabbies in improving our earnings and make ends meet.”
Comfort Delgro’s Statement
COMFORTDELGRO REVISES TAXI FARE STRUCTURE TO HELP CABBIES DEFRAY HIGHER OPERATING COSTS
6 December 2023 – ComfortDelGro will be revising its taxi fare structure to help cabbies defray higher operating cost due to rising fuel prices, high inflation and the impending Goods & Service Tax (GST) hike. The changes, which include fare increases and new surcharge hours, will come into effect at 6:00am on 13 December 2023.
ComfortDelGro’s current fleet of taxis, excluding limousine taxis, will see a S$0.50 increase in flag-down fares and a one-cent increase for distances and waiting time fares.
This adjustment will include the Hyundai i40, Hyundai Ioniq, Hyundai Kona, BYD E6, Toyota Prius, and Toyota Sienta taxis.
The flag-down fares for Limousine taxis will remain the same following its revision on 30 November 2023, while distances and waiting time fares will be adjusted to S$0.36 from S$0.35. Please refer to Annex 1.
With this adjustment, the estimated fare for a 10km off-peak normal taxi trip is estimated to increase by 6.8% or S$0.94 from S$13.80 to S$14.74.
As part of the fare adjustment to address the increase in taxi demand, the Company will be extending the evening peak hour surcharge for all taxis by one hour, to cover the period from 5:00pm to 11:59pm, effective Monday through Sunday, including public holidays.
A new peak hour surcharge will also be implemented from 10:00am to 1:59pm on Saturdays, Sundays, and public holidays. Please refer to Annex 2.
Mr Tommy Tan, CEO of ComfortDelGro’s Taxi Business, said: “For the past few years, our cabbies’ earnings had been impacted first by the pandemic, and then by higher operating expenses due to increase in fuel prices and high inflation.
This carefully considered move to update our fare structure is necessary. It ensures that our cabbies receive fair earnings with the rising cost of operations.
As we analyse taxi demand patterns, there is also a need to review the evening peak hours and introduce weekend peak hour surcharge to ensure adequate taxi supply to meet increased commuter needs during the peak hours. We appreciate the understanding and support of our commuters as we implement this change.”
As a support to its cabbies, ComfortDelGro has provided rental waivers since the outbreak of the pandemic in April 2020 and continues to provide a 10% rental waiver today.
The Company had consulted with the National Taxi Association (NTA) prior to proposing the recent fare changes. The NTA expressed its support for the fare adjustment, acknowledging the challenges faced by taxi drivers due to rising costs.
Ms Yeo Wan Ling, Adviser to NTA said: “The rise in the fare adjustment is important for our taxi drivers who are also struggling with higher cost of living and operating cost due to higher fuel prices.
The impending increase in GST is also an additional cost on their operations as it impacts their rental, food and parking expenses among others. As such, the fare increase will translate into higher take home pay for taxi drivers to better support their families.”
In response to the fare adjustments, Cabby Raymond Ong, said: “In recent years, the rising cost of living and operational expenses have eaten into cabbies’ earnings. The impending GST increase in 2024 also adds to my concerns and worries. This welcome adjustment not only provides timely relief from the impact of the GST hike but also serves as a muchneeded measure to support cabbies in improving our earnings and make ends meet.”