News: ComfortDelgro impose 30c surcharge

IN THE NEWS:

Source: Channelnewsasia Website
http://www.channelnewsasia.com/stories/singaporelocalnews/view/359729/1/.html



SINGAPORE : From July 17, passengers on Comfort and CityCab taxis will have to pay a 30-cent surcharge per journey.

Singapore's largest taxi group, ComfortDelGro, said this is to help its cabbies cope with increases in diesel costs.

Open market pump prices for diesel have risen by more than 50 per cent in the last six months, and ComfortDelGro said it has been subsidising the cost so that its cabbies can enjoy diesel prices at S$1.19 per litre.

But despite these subsidies, cabbies still have to cough up an average of S$15 a day extra for fuel.

So with the new surcharge, cabbies making at least 30 trips can make S$9 or more each day. But some cabbies said it is still not enough.

One of them said, "(If we get about) S$17, S$18... extra, (then) it's okay."

Others do not think the surcharge will benefit them. One cabbie said, "(It) doesn't help. (It will) frighten people from taking a taxi."

Passengers also had mixed views. One said, "I'm already taking a cab during the peak hour, so 30 cents doesn't matter actually."

Another said, "I'm not all right with that. Because basically we already have the 35 per cent surcharge for peak hour."

A third noted, "I think it's quite reasonable. At least you pay the cabbie, because I think the other surcharges, what we pay, I don't think it reaches them."

Some passengers, however, worry this will set a precedent. One passenger said, "What happens if the petrol price increases again? Are you going to increase the surcharge?"

ComfortDelGro said the surcharge will be removed when pump prices fall back to S$1.19 per litre - the market price last December.

For now, there has been no word from other taxi operators on whether they will introduce a similar surcharge. - CNA/ms

My Comments:

If you ask me, it will not work if other taxi companies does not follow. Reason being commuters can conveniently not flag for comfort taxi and flag the other company taxi to avoid surcharge. If every company follows suit, then commuters would not have a choice. I dont think it will affect too much in terms of demand as 30cent as a percentage in today's taxi price is just insignificant. On midnight for me, it is a mere 1%.

And is it realistic for Comfort to think pump prices will really drop back to S$1.19 per litre?