Policy Question
What actions, if any, should be taken by Singapore's Land Transport Authority to address the increasing proliferation of third-party applications pertaining to the the booking of taxis, in view of their impact(s) on the taxi industry and commuter(s)?Client of Memo
The Land Transport Authority of Singapore (LTA). LTA is "responsible for planning, operating, and maintaining Singapore’s land transport infrastructure and systems." Taxis are one mode of land transport which comes under LTA's jurisdiction.Brief Description
Recent new innovations have provided new channels by which taxi services may be provided. This has taken the traditional cab model by storm. In particular, the disruptive technologies provide relatively easy means of enabling a driver with a private car become a taxi driver, and equally easy means for commuters to engage the services of such a driver. Some of the most widely known players in this emerging market include Uber and Lyft, where they are actively engaging both drivers and commuters alike in an effort to promote obtain a greater market share and attain economies of scale.However, ridesharing is strictly forbidden by the Singaporean authorities. This has not deterred players exploring this new channel of matching demand to supply from coming up with solutions that accede to local regulations. One of the major ways in which companies are competing in the local market is by promoting their application as an easy way to matching commuters looking for a ride, to taxis looking for a fare. Uber is one such company, but there are other incumbents such as GrabTaxi and Easy Taxi aiming for the lion's share of the pie.
The government is currently adopting a cautious approach with regards to the increasing proliferation of third-party applications as a means for booking a taxi. Even in its infancy, it has had a definitive impact on the taxi industry and on commuters. This policy analysis hopes to shed light on whether actions, if any, should be taken as these platforms grow unabated in the absence of existing regulation.
Your policy question is very interesting. There is good specificity beause you mention the exact government body who is going to design and implement the policy. Also, this question is completely neutral, as it does not favor any particular policy solution from the very beginning.
ReplyDeleteHowever, from your brief description of the background it is not clear why third-party applications become a solution that accede to local regulations. In which way are these applications different from ridesharing that is prohibited?
Your question policy question follows a popular point which more and more countries are considering. In your description, it said ridesharing is strictly forbidden by the Singaporean authorities. So, the policy may have conflict with the development of the third party application. I am curious about why the ridesharing is forbidden in Singapore, what the government worry about. They will give me a good direction to understand.
ReplyDelete