LTA clarifies that unlicensed vehicles cannot provide cross-border services

Foreign-registered vehicles are not allowed to provide cross-border passenger transport services for hire or reward in Singapore without a valid Public Service Vehicle Licence (PSVL), the Land Transport Authority (LTA) said on 28 December 2019.

The LTA clarified the regulation in response to queries from The Straits Times on Sameride, a carpool service due to launch a Singapore-Johor Baru carpooling service from Monday.

According to a press release on the Sameride website, more than 300 commuters have pre-registered for the service in the app over the last two weeks. The company's first route for commuters was established in 2016 in the Washington, DC Metro Area in the U.S.A, its website says.

For its latest route, Sameride estimates that users will be able to significantly reduce the cost of their commute between Johor and Singapore by up to 50% compared to taxi services.

The app also aims to expedite travel time by reducing traffic on the cross-border route. The LTA said it takes a 'serious view' towards foreign registered vehicles illegally providing hire-and-reward services, and said it will carry out strong enforcement action against such illegal activities. It has advised the public not to engage cross-border hire services by individuals using unlicensed vehicles.

The LTA explained that such vehicles may not be sufficiently insured against third-party liabilities and passengers who ride such vehicles may not be able to claim insurance if they are involved in traffic accidents during their travel.

Those caught providing hire-and-reward services, including cross-border carpooling service without a valid PSVL, can be jailed up to six months, fined up to $3,000 or both.