Trans-Cab, Singapore’s second largest taxi operator, has announced it will slash rental fees by as much as 34 percent.
The move comes as competition heightens with private-hire car services such as Uber and Grab.
From 1 Jan 2017, Trans-Cab’s Toyota Wish taxis will cost S$59.50 per day to rent – a 34 percent drop from the current S$90.
The company will also trim daily rental rates for its Renault Latitude cabs from S$114 to S$88.50 over a 3-year period.
These rates will apply to drivers who rent the taxis alone, and do not engage relief drivers.
Trans-Cab has a fleet of 4500 taxis, and at present 11 percent, or 500 of them are lay idle.
Observing the cartel-like behaviour of taxi operators, others are expected to follow Trans-Cab’s lead and reduce taxi rental rates.