A rough-and-ready examination of what Singapore has gained by having around 47,000 taxi-like cars plying here.
Better access to rides
Commuters are now able to get a ride far more easily than before, even on rainy Friday evenings. The sheer number of chauffeured cars on call here – which has grown by 2.5 times since Uber and Grab entered Singapore in 2013 – has made for improved availability.
Competition
Drivers now have more choices in who they want to rent their cars from. Competition has driven rental rates down all round. Those who feel there is a stigma attached to driving a taxi are now able to drive an ordinary passenger car, albeit one with telling decals front and back. Competition has also resulted in discounts and promotions lavished on commuters. The newcomers, especially, are offering plenty of sweeteners (at least, for now) to win market share.
Better use of assets
Passenger cars are typically idle 90% of the time. With the authorities allowing cars to be monetised, more motorists are offering their cars to be hired. This particular benefit is most apparent in the GrabHitch sphere, where ordinary motorists give rides (for a fee) to others who are going the same way as they are.
Diminished desire to own cars
With people able to summon a ride with a couple of keystrokes, there is less need for them to own cars. At least that is the theory. If true, that is positive for land-scarce Singapore.
Less unemployment
Jobless people are now able to find a ready alternative in the private-hire industry. With an extremely low barrier to entry, the industry is a source of livelihood for many folks.
Read about the cost of having so many private-hire cars in Singapore.
Read about the carpooling trend among commuters in Singapore.
