Taxi operators can convert used cars into taxis in move to level playing field with private-hire cars

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With new regulations allowing them to convert used cars under five years old into taxis, taxi operators in Singapore will have greater flexibility in managing their fleets, according to senior minister of state for transport Amy Khor on Wednesday ( Mar 5 ). &nbsp,

Operators have an additional option to expand their fleet, which may help reduce costs, according to Dr. Khor said, as part of the Ministry of Transportation’s ( MOT’s ) spending plans for the year, which was announced in parliament.

Operators who want to convert old cars into taxis will need to ask the Land Transport Authority ( LTA ) for permission. &nbsp,

The ministry is putting in place one more strategy to level the playing field between private-hire cars ( PHCs ) and taxis.

Taxi providers will also be permitted to buy up to 5 % of their ship if they are more than three years old. According to Dr. Khor, this move aims to lower the risk of operators trying out new taxi models like multi-purpose vehicles ( MPVs ), which are more expensive but better suited for commuters who require larger vehicles. &nbsp,

Users can continue expanding their ships beyond 2 percent annually, but the 2 % annual cap on growth for car fleets will also be lifted. Since 2021, the cap, which was first put in place in 2013, has been in place to allow car drivers to restock their ships following the pandemic. &nbsp,

According to LTA, the methods take time to become operational once they are in place.

More information will be provided at a later time as part of the consultation with vehicle users, the National Taxi Association, and the National Private Hire Vehicles Association.

According to LTA, the vehicle fleet has more than halved over the past ten years, from around 28,700 in 2014 to about 13,100 in 2024.

In contrast to PHCs, cars have higher running costs because of variations in the regulatory frameworks, with taxi drivers being subject to more restrictions, the authority said.

” These actions give taxi operators more room to control costs and expand their fleet,” said Dr. Khor. They” complement our goes in the PHC industry to more level the playing field between vehicles and PHCs.”