Strides, the private-hire subsidiary of SMRT Taxis, is tying up with the distribution arm of Toyota Motor to offer the first hydrogen fuel cell cars in Singapore as early as the year end. The cooperation with Toyota Tsusho will also see Strides making forays into regional markets such as Myanmar, Malaysia, Hong Kong and Japan.
He said Strides will start with the Toyota Mirai fuel cell model, and will explore other models such as those from Honda and Hyundai. If the plan materialises, Strides will be the first operator in the region to ply fuel cell vehicles.
Fuel cell cars use hydrogen fuel to make electricity through a chemical process. The electricity powers one or more on-board motors. Unlike conventional battery-powered cars, which take hours to recharge, fuel cell cars take only five minutes to refuel.
But each fuel cell car costs four or five times that of a conventional petrol car. A battery-powered car costs 1.5 to two times more. Mr. Heng said the tie-up is strategic as the Japanese company has a strong presence worldwide.
Mr. Heng said the firm now has close to 300 cars. Asked how much Strides had cannibalised SMRT's taxi business, he said, "The market has more or less stabilised now.
But initially, we had 10 to 20 percent who migrated over to Strides. And for the limousine division, up to 40 percent." He said the growth potential is high, and he expects a taxi and private-hire fleet of 5,000 to 6,000 in the medium term. SMRT Taxis has about 3,000 cabs now.
With Uber pulling out of the market, Mr. Heng said Strides is in a stronger position because of its close association with Grab. It uses the Grab booking platform and commuters can also use GrabPay to pay for rides. Mr. Heng said plans are afoot to make GrabPay available throughout its taxi fleet.
