PROPER PERSPECTIVE

The word is out that the taxi operators (again) will be increasing the flag-down rates and the surcharges within the next few weeks. So what does it all mean in the grand scheme of things? Let us consider the various players in this drama.

The Passengers

The people who will have to face the consequence of the increase will invariably be the passengers. Most of us board a taxi when other alternatives are exhausted, so it's pretty much a case of that alternative being a bit more expensive in future. How about those who use taxis as their primary mode of transport? Well, they might reduce their pattern of taxi usage a little to offset the increase in expenditure.

The Drivers

Pretty much the same old, same old. Passengers will be paying more each time they take a taxi but trying to keep their overall spending the same by reducing the frequency. This means the drivers will be getting more money per fare but less fares than usual. It looks as though their nett earnings might very well be just the same or marginally higher.

The Taxi Companies

A prime example of how to make money out of idiots, they have initiated a price increase citing the increase in fuel prices (again). They are so-called 'helping' the 'poor' taxi drivers improve their income and slow down the turnover rate (ie. drivers quitting the 'highly specialized' profession of driving a taxi). Interestingly, though, the taxi companies NEVER help their drivers by reducing the rental rates which are about $70 or so a day. Drivers are instead given rebates on their fuel costs by these companies and, rest assured, these rebates will be 'revised' downwards to adjust for the fare increase, sooner or later.

In the end, the silly taxi driver doesn't look like he is going to benefit from this little exercise of economical meandering. It is the taxi company that looks set to reap in the increased profits.

Our Take

Nobody strives to be a taxi driver. It just happens (as in 'shit just happens'). So if people are leaving the taxi driving 'profession', it just means that the economy has opened up so that former engineers, technicians and other skilled workers can once again regain their positions. In any case, there will always be new drivers coming in as bad luck is omnipresent and someone will always be forced by circumstances all the time (just like prostitution). Taxi companies don't have to improve drivers' earning potential to attract 'new talent'.

BUT they are, like all profit-centred businesses, greedy. In the business world, they call it 'aggressive'. But a rose is a rose by any other name and so is greed. This fare increase will just end up increasing the profit margin of the taxi companies with some of the extra being passed on to the drivers (much like pittance).

A lot of other things can be done to improve drivers' earnings. As mentioned before, better fuel rebates (it's diesel AFTER ALL!) and reduced rental rates are a start. If these companies do that and subsequently REDUCE the flag-down rates, more passengers will come and the drivers will truly benefit a better income.

REALITY OF THINGS

The taxi companies work in tandem, led by ComfortDelgro- as can be seen in today's report (above). It would be pertinent to note that taxi companies DO NOT make a loss here and their profits increase continually, more or less. Profit is AFTER deduction of operating costs, so that means that compared to previous years, the taxi companies were able to make more money than ever even though their operational costs went up.

Even though the taxi industry is not regulated by the Public Transport Council (PTC), one taxi company is big enough to dictate the pattern for the rest. Essentially this means the industry is controlled by a single entity (sound familiar?) and pretty much able to raise prices as and when it wants.

Interestingly, most of the taxi drivers don't seem particularly impressed with the fare increase (based on responses to previous fare hikes). And as usual, the taxi companies make no mention of increasing service standards in return for the higher fares. It is not as if the taxi service standards are above average in the first place. Even without the fare increase, it is high time that passengers were treated with better service, what more.

Ultimately, it looks as though the taxi drivers' day just got worse instead of better. Well, at least we can all take solace in one undeniable fact - our dear old taxi drivers will continue to dish out the same old pathetic service, whether they're getting screwed by the taxi companies or not....

-SingaporeTaxiDriver-