The Straits Times reported that the Government has stepped in to regulate third-party taxi booking services, promising to safeguard the interest of commuters while also allowing space for the nascent industry to innovate and expand. The Third-Party Taxi Booking Service Providers Bill was passed in Parliament after a short debate.

These are some things that commuters need to know about the new law:

1) No need to specify destination

Third-party taxi booking services are not allowed to require commuters to specify their destinations before making bookings. This is to prevent taxi drivers from cherry-picking their fares or ignoring commuters whose destinations they deem inconvenient. However, commuters can still choose to input their destinations while making a booking, should they wish to do so. The rules simply prevent this step from being made mandatory.

2) No bidding, no pre-trip tipping

As taxis are a form of public transport that should be equally accessible to all, passengers using these apps will not be allowed to bid or leave tips for their trips in the hope of securing a ride more quickly.

3) Taxi or chauffeured car?

Some of the apps on the market now allow users to book not just taxis but also chauffeured car services, sometimes referred to as limousine services. These cars are not provided by taxi operators and their prices can be higher than those of regular taxis.

Under the new law, the apps must be upfront about which service the commuter is opting for and cannot send a chauffeured car if the passenger has chosen a taxi. The apps must also display all surcharges, prices, and booking fees clearly. Chauffeured cars have always not been allowed to pick up passengers along the streets. Such services must be booked in advance and are distinct from taxis that can be hailed.