Laws to regulate third-party taxi booking services

While some regulation of third-party taxi booking services is necessary to protect commuter interest and safety, Transport Minister Lui Tuck Yew said a light-touch approach will be adopted in how the Government regulates such service providers operating here, The Straits Times reported.

Mr. Lui said this yesterday before Parliament approved a Bill making it necessary for third-party taxi booking services that have more than 20 participating taxis, to register with the Land Transport Authority (LTA) in order to operate in Singapore.

"The proposed regulatory framework balances the need for consumer protection with the flexibility needed for innovation in the industry, so that these services can enhance the provision of taxi services in Singapore, and ultimately benefit both commuters and taxi drivers," said Mr. Lui.

During the debate on the Bill, Non-Constituency Member of Parliaments (MPs) Lina Chiam and Gerald Giam questioned the need to regulate service providers. Both believed the market should decide whether a business was viable or sustainable.

Said Mr. Giam, "In regulating third-party service providers, the Government should focus more on maximising benefits to consumers and taxi drivers, and less on protecting a particular business model or existing taxi operators."

Others like Ang Mo Kio GRC MPs Seng Han Thong and Ang Hin Kee asked whether the regulations went far enough to protect drivers and ensure that service providers treated them fairly.

Such providers do not have huge investments in vehicle fleets that can be held financially liable. Drivers told Mr. Ang of late payment of fares and they also worry that such operators could exit the market with little warning.