Increase in private-hire cars, taxis outpaced trip demand

This has moderated point-to-point fares and drivers' earnings, says Amy Khor

- Vanessa Paige

Between the second quarter of 2023 and the second quarter of 2024, the number of active privatehire cars (PHCs) and taxis increased by 8 per cent, while the average daily number of point-to-point (P2P) trips increased by just 1 per cent during the same period.

This has moderated fares and drivers' earnings, said Senior Minister of State for Transport Amy Khor on Sept 10. She added that the average cost of P2P trips had also declined in the first half of 2023 after peaking at the start of that year.

P2P fares are subject to "seasonal fluctuations", Dr Khor said, and tend to rise during festive seasons and in months when there are major events, such as Taylor Swift's concerts in March and Coldplay's concerts in January. Conversely, demand dips during school holidays, when many Singaporeans are abroad. These peaks and troughs in demand affect drivers' income, she noted.

She was responding to questions in Parliament on the P2P transport industry, including whether the Ministry of Transport (MOT) monitors the earnings of taxi and PHC drivers, and whether the Government monitors the supply of such drivers in relation to demand for P2P services. A question was also raised about whether the current capacity of the P2P sector - with a high number of drivers - is sustainable.