Climbing P2P ridership sparks review of transport framework

The Point-to-Point (P2P) transport industry structure and regulatory framework, which governs the business activities of established taxi and ride-hail service providers to safeguard commuter and driver interests, will be reviewed for continued relevance. Announced by the Land Transport Authority (LTA) in a press release on 13 September, the review comes amidst evolving commuter needs - including an ever-growing ridership - and sector makeup. 

Local demand for P2P transport has increased steadily over the last three years. On average, the number of daily P2P trips climbed from 517,000 in November 2020 to 613,000 in July 2023. That works out to 96,000 additional trips per day. 

Flag-downs, services hired at taxi stands and private hire rides offer Singaporeans with convenient alternatives to public transportation in getting from point to point

Comprising street-hails and ride-hails, of which Grab and Gojek have the largest market share in Singapore, P2P transport provides commuters with an alternative to public transportation for end-to-end travel without owning a car. In particular, the convenience of direct journeys with ride-hailing makes it a popular mode of getting around among commuters. The upward trajectory of P2P ridership will likely persist, bolstered by ride hailers. 

The P2P regulatory framework came into force in October 2020 to afford LTA and the Public Transport Council (PTC) greater oversight over the sector. The review, slated for completion by the second quarter of 2024, is the first since the roll-out of the framework and will distil the objectives of:
•    Improving the availability of taxis and ride-hailing services throughout the day, especially during late-night hours when supply dips
•    Ensuring these services are provided with minimal disruptions and downtime 
•    Ensuring such services remain inclusive by catering to the additional needs of commuter groups such as wheelchair users and families with young children

LTA is already in talks with taxi and ride-hail operators, the National Taxi Association, and the National Private Hire Vehicles Association. Apart from repurposing the framework for robustness in keeping with times, on the agenda is also adopting cleaner-energy vehicles and encouraging gracious behaviour among drivers and commuters. 

More drivers will have to ply the streets to materialise the various uplifts resulting from the review and ensure the system remains sustainable for all players - for instance, to keep fares affordable for commuters and avoid burn-out of the existing pool of drivers.

The review should also balance taxis' present-day role in serving high-demand locations such as Changi Airport, tourists, and commuters who are less technologically savvy with the goal of commuter-inclusivity. LTA's latest undertaking for the transport sector will prove a challenging ride - though if executed well, will bridge important gaps in the wider transport network and benefit more Singaporeans.