The claims come after a few netizens blamed such companies for the eye-watering premiums: The most recent bidding results on Jul 6 saw the Open Category hit S$110, 524, breaking a nearly three decade-record, as payments rose across the table.
“The major buyers are those car rental companies that will push up the needs! They should be separated out! ” one consumer wrote in the Fb comments section of the CNA follow-up statement on the COE costs.
Another Fb user predicted that COE premiums will continue rising as “most” bidders were car rental companies. “Now rental car biz is good as most PHV (private-hire vehicle) drivers can not (afford) to buy, so rent, ” he said.
UBER’S AGGRESSIVE COE OFFERS
Such responses were not without precedence.
In May 2016, the Open Classification premium closed at S$49, 700, and while this was a drop from previous costs, observers pointed out it could have been lower if not for aggressive bids from Lion Town Rentals, then possessed by ride-hailing program Uber.
According to a Straits Occasions article that 30 days, Lion City Leases submitted 870 offers in the three COE categories for vehicles, and was successful in all but 30 of them. In the previous tender two weeks before, the organization was successful in most of its 90 bids in the Open Category.
Transport analyst Walt Theseira at the Singapore University of Interpersonal Sciences told CNA that Uber at the time was trying to expand its fleet “at all costs”.
“They were not particularly concerned with the fact that their rapid expansion had been effectively driving upward (COE) prices, inch he explained.
“That was because, as we know, Uber had a lot of financing that allowed them to create those decisions without having to worry as much about the expenses. ”
Relate Professor Theseira said he has heard anecdotally that private-hire companies were now interested in expanding their fleets, although he recognized not having actual statistics. The Land Transportation Authority (LTA) provides stopped revealing the particular identity of COE bidders.
“When you look at the panorama in Singapore, it makes a lot of sense mainly because many of these providers might have actually cut their fleets severely during COVID, or they might have let their particular older vehicles run out without renewing the COE, ” he or she said.
“We’ve also seen that will since COVID restrictions were lifted, there’s now excess demand for private-hire vehicles and taxis. As well as it looks like quite reasonable demand for rental car shared mobility. ”
LTA figures show that there were 71, 147 private-hire cars — comprising self-driven and chauffeured cars : at the end of 2020. This figure dropped to 67, 990 by the end of 2021, once the pandemic was in full swing, and crept up to 68, 395 by the end associated with May this year.
COE PRICES TOO HIGH FOR FLEET EXPANSION
Mr Lim of Motorway Team agreed that there was increasing demand pertaining to private-hire services, attributing it to convenience as well as the easing of COVID-19 restrictions.
But Lion Town Rentals, which says it has the largest car rental fleet in Singapore, will only consider expanding its fleet plus bidding for more COEs next year, Mr Lim said, pointing away that the high rates now would furthermore drive up rental prices.
“Drivers can’t pay for the prices; the cost is too high, ” he said, adding that there had been still time for fleet expansion as its current cars were about five in order to six years old.
Mr Lim said the Uber circumstance in 2016 was different, as rates were only about S$50, 000 then. “Now it’s S$100, 1000; cannot compare. It’s almost double, inch he said.
Ultimately, Mr Lim said the low COE supply was contributing to higher premiums. “It’s not about individuals bidding. The provide is becoming less and less. I believe August will be even worse, ” he added.