Policies
Taxis and private hire cars (PHCs) complement our bus and rail networks by offering commuters alternative options for more direct commutes. They also help to meet the need for car-like journeys, without requiring commuters to own a car. As the demand and supply for point-to-point transport services continue to evolve, we will ensure that our policies and regulations protect the interests of both drivers and commuters.
The Point-to-Point Transport (P2P) Regulatory Framework, which aims to protect the interests of commuters and drivers, applies to transport operators with 800 or more taxis or PHCs. The framework was last updated in October 2020 in response to a growing range of P2P transport services. Under the regulatory framework, three types of operator licences are issued:
- Street-hail Service Operator Licence (SSOL), which allow taxi operators to provide street-hail services for passenger pick-ups along the roads and at taxi stands; and
- Ride-hail Service Operator Licence (RSOL), which allow ride-hail operators to provide app-booking and car-pooling.
Licensees must comply with the conditions of their licences, including meeting LTA’s safety and quality standards. To give drivers and commuters the freedom to choose which platforms to use, licensees must also ensure that partnership arrangements with drivers are non-exclusive. There are currently five SSOL licensees, and seven RSOL licensees.
To keep pace with evolving driver and commuter needs, as well as to keep up with structural changes in the market, MOT and LTA embarked on a review of the industry structure and regulatory framework since September 2023.
While the review is still ongoing, some changes that have come into effect include:
- Updating the regulatory regime for taxis and PHCs – extending the statutory lifespan of taxis from 8 to 10 years; reducing the inspection frequency for taxis below 3 years old to once a year; increasing the inspection frequency for PHCs above 10 years old to once every six months, removing call-booking requirements for smaller taxi operators;
- Improving the resilience of taxi and PHC services – operators will need to meet new standards for managing operational disruptions to mitigate the impact on drivers and passengers; and
- Enhancing the passenger experience, especially for those with additional needs – ride-hail app enhancements to make it easier for families with young children and wheelchair users to indicate their requirements, such as child seats or boot space for foldable wheelchairs.
Learn more about taxis and private hire cars, including the ongoing review.
Street-hail and ride-hail operators set their own fares, which take into account the supply and demand for such services. Some operators also offer customised services that cater to commuters with pets and families with young children. For every service type, operators have the flexibility to set fares which both their drivers and commuters can accept.
While the Public Transport Council (PTC) does not intervene in the setting of fares, the PTC ensures that fares are transparent, clearly communicated, and easy to understand so that commuters can make an informed choice about the type of service to use.
For taxi trips based on metered fares, licensed operators are required to publish the booking charges, metered charges per distance and other surcharges. For ride-hail trips based on flat fares, operators have to make clear to commuters, at the point of booking, the fare that will be charged for the trip. Operators also have to publish the quantum for any additional charges that may be levied (e.g. fee for unplanned additional stops).
To safeguard the interests of drivers and their commuters, PTC will take action against fare evasion by commuters and overcharging by drivers for trips booked through licensed street-hail and ride-hail operators.
