Uber and Grabtaxi drivers requiring a vocational licence

From ‘Uber, Grabtaxi drivers may need vocational licence’, 10 June 15, article by Zachary Soh, My Paper

DRIVERS who run chauffeur services under ride-booking apps such as Uber could be required to obtain a vocational licence in the future.  While they are currently free from this requirement, the Land Transport Authority (LTA) said yesterday that it is looking into removing this exemption, as a way to ensure the safety of passengers taking private-hire rides.

In a forum letter published in The Straits Times, LTA noted that chauffeured vehicle services have become more accessible to the public with technology and given the industry’s recent growth, it is studying possible measures to safeguard commuter interest. The cab community has cried foul recently, following news of ride-matching apps and rental companies working together to run their own fleet of “taxis”.

The rental firms lease out cars to drivers at a rate cheaper than taxis. The drivers then use the vehicles to fulfil bookings from apps like Uber and GrabTaxi. These companies and drivers, however, do not have to meet the stringent requirements imposed on the taxi industry, such as vocational training.

…Meanwhile, Uber drivers have told The Straits Times that the time and money required to take a vocational course will be an extra burden for them. One driver, Yu Kim Reed, 30, asked why vocational licences have to be implemented now, given that chauffeur services have been around for so long. “The only difference is that a (car hire) call centre has been replaced by the Internet,” Mr Yu said.

According to the Sunday Times (Are ride-matching apps an UBER problem, 14 June 2015, ST), some Uber drivers do in fact ply their trade like ‘chauffeurs’. One subscriber known as ‘Marcus’ supplies mints, newspapers, water, even a socket for phone charging for his customers. Uber also has a strict rating system whereby any score below an average of 4.3 (out of 5) warrants a suspension or total ban, so drivers are forced to go the extra mile, sometimes literally.

Other requirements before becoming a full-fledged Uber driver include a 2 hour training session, online lessons, up to $5000 commercial insurance, and setting up your own company and registering your car for commercial use should you choose to drive your own vehicle. All that, however, doesn’t ensure passenger ‘safety’ as what LTA is hung up about. Then again, your safety isn’t guaranteed even if you’re in the backseat of a ‘proper’ taxi anyway, especially if you’re drunk and vulnerable.

One ride-sharing/matching app supporter explained in a letter to the ST that the business model satisfies a genuine need among frustrated passengers who have tried calling call centres and forced to ‘listen to their holding music’ (Ensure licensing doesn’t stifle progress, 12 June 2015, ST Forum). He also hinted at an element of ‘protectionism’ given that main players like Comfort Delgro, having tremendous ‘economies of scale’, still reap profits despite their high rental costs. As the occasional app-user myself, I tend to agree that there is a market for such services, more so if my Uber ride includes complementary perks like an iPhone charger or a bottle of champagne.  It is also a wake up call for regular cabbies not to disappear just before midnight charges kick in, not to rely on the customer for directions, or drive like demented road warriors in Mad Max.

Financial factors like app companies taking a cut from your earnings aside, 3rd party booking apps have their share of problems too. Grab Taxi requires you to exchange handphone numbers with cabbies, for instance. Passengers could screw you over by cancelling last minute or not appearing at the designated pick-up spot. You still risk having someone puke all over your backseat, or rob you with a box-cutter. Someone got duped into paying $97 to a fake Uber driver. But that is how ‘market forces’ work. If you want your privacy, or if you don’t trust private cars, take the train, but bear with the crowd and breakdowns, or fight with other flag-down passengers.

Ride-sharing/matching is still, at the very least, more reassuring than the ‘pirate taxis’ that once roamed the streets.  These flourished as early as the mid fifties, when entrepreneurial drivers capitalised on the bus strikes to perform a public service when people could no longer rely on the main form of public transport. Business was so competitive in fact, pirates were willing to charge 5 CENTS per mile and provide ‘doorstep’ escorting services.  It’s a misuse of the traditional use of the word ‘pirate’, though. These drivers aren’t plundering from anyone. They’re pirates like how people operate ‘pirate radio’ before the Internet. Comfort DelGro is your ‘Top Hits’ station, with the same old songs played to death, while Uber/Grab Taxi is where you get to hear the ‘cool stuff’ without ‘royalties’.

Of course, the Government had to clamp down on these guys and declare all out war, not so much that passengers were harmed by it, but because they had to protect the interests of our taxi-drivers, who were partly the reason why pirates had their supporters in the first place. Taxi drivers then tend to ‘choose’ tourists over locals, and people complained about their ‘attitude’ after an evening at the cinema. Today, taxis choose to wait in queue outside our casinos rather than pick you up when you’re stranded in some godforsaken ulu place past midnight. By the time you get an actual human voice on the Comfort Cab booking line, you would have been assaulted and left to die pants-down by the road.

In 1970, the Government coerced drivers into ‘job conversion’ in a bid to phase out pirate operations, and anyone who continued to go pirate would be fined and have their ride confiscated. In 1971, a man who depended on pirating as his livelihood was driven to suicide by traffic offences slapped by the police, among other debt woes. By 1975, the pirates returned to the new towns, because the waiting time for the only bus on the road was probably longer than that needed to set up your one-man taxi business.  Even if bus frequencies have since improved, we sometimes still watch helplessly as bus after bus zooms by, the captain ignoring your flailing arms, oblivious that there’s a gaping hole in the middle because nobody wants to move in.

Today, the authorities are considering a softer approach in contrast to the ‘Operation Pirate Taxi’ blitz of the past, but the fact that we’re even discussing frameworks and legislation now despite our ‘world class’ transport system, in view of the high demand for these apps (6 companies and counting, the LTA one not included), suggests that not enough is being done to move people around an increasingly crowded city efficiently. Well yes, there are good and bad Comfort drivers, just like there are good and bad Uber/Grab Taxi drivers, but there isn’t enough evidence to say that the one without an official licence is more likely to drive you off a pier and plunge into the river. For the record, regular taxis have driven into condo pools before. At least I know which of the two is more likely to carry a float just in case the unimaginable happens.

Instead of a knee-jerk reaction of mandatory licensing, the first thing LTA should work on is figuring out what’s wrong with the current system, and consider the benefits of these apps not just in terms of moving the public, but as a form of employment, without having their judgement fudged by taxi giants with vested interest in seeing the demise of their hi-tech rivals.  In the meantime, if I want an ‘uber’ chauffeur service at a fraction of the price of an actual limousine, I know who to call.

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2 Responses

  1. Unless you just fell off of a turnip truck, everyone knows that in order to drive a taxi or limo in most cities, there are regulations in place, and have been for decades, that drivers complete and pass a course for chauffeurs and taxi drivers. Companies like Uber are basically thumbing their noses at such regulations and the cities and states that enforce these regulations. Just wait until there is a horrific accident where numerous people are killed because of an Uber driver who was not qualified to be a driver for hire or whose insurance company denies a big settlement because of the common insurance clause of not using a personal vehicle for commercial purposes, like delivering pizzas, etc. My daughter’s car was t-boned by a teenage pizza delivery driver driving for a major pizza delivery company several years ago when he ran a red light, and the insurance company the boy’s mother had for the car her son was driving denied the claim for my daughter’s vehicle damage and her injuries. The reason? Her son was using his car for commercial purposes. I ended up suing the big name pizza company and they settled out of court. That is the dirty little secret that ALL companies that deliver food are keeping under wraps. These companies are fully aware that over 90% of the drivers delivering their pizzas, subs, and other food items do not have the proper car insurance that is required to be able to use the family car for commercial purposes. Uber and all of the companies like Uber are doing the same thing. If you are injured or killed in an accident caused by an Uber driver, there is a 99% chance that the Uber driver’s insurance company will deny any claims if the Uber driver did not have commercial vehicle insurance.

  2. Unsurprisingly again the arguments so far are similar.

    Simplistically this is about self interests and more revenues aka kpis. Is it any wonder then no one has argued about how the local taxi’s daily rental rates and operations requirements like minimum daily milelage quotas – such rules and never ending rules have led the likes of Uber to sprout?

    The solution is to keep things simple and not be over zealous in raking more and ever more revenues. Simple yet hard to do in sg.

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