Oral Reply by Senior Minister of State for Transport Dr Janil Puthucheary to Parliamentary Question on Taxis and Private Hire Cars being used to deliver goods

Mr Ang Hin Kee asked the Minister for Transport 

a.     whether the Ministry is aware of apps-based operators or operators offering courier services using private-hire vehicles and taxis;

b.     whether LTA checks that such vehicles come with relevant commercial accident insurance; and

c.     what is the progress on the National Taxi Association and National Private Hire Vehicles Association's calls for reviewing of regulations that allow their vehicles to do courier services.

Reply by Senior Minister of State for Transport Dr Janil Puthucheary:

1.     Taxis and private hire cars (PHCs) are meant to carry passengers for hire and reward, and should not be used for the conveyance of goods for reward without the Land Transport Authority (LTA)’s prior approval. This is to ensure that taxi and PHCs remain available to provide point-to-point (P2P) services for commuters. Drivers found violating these rules may have their vocational licenses revoked. Thus far, LTA has not found any driver in violation of these rules. LTA will actively enforce against such offences and will not hesitate to take firm action against the perpetrators.

2.     Taxi and PHC operators that are interested in allowing their drivers to perform courier services on a limited trial basis may approach LTA to discuss such a possibility. LTA will work with them to assess the feasibility of a trial, how it should be scoped to ensure minimal impact on P2P availability, as well as the conditions necessary to safeguard commuter interests (e.g. ensuring the vehicles have the appropriate third-party insurance coverage required under the Motor Vehicles (Third-Party Risks and Compensation) Act).