2 more ride-hailing operators to start in 2025

Passengers will have two more ride-hailing operators to choose from in 2025, with the award of two provisional licences given to Trans-cab Services and Geo Lah by the Land Transport Authority (LTA).

Trans-cab has the third-largest taxi fleet in Singapore with 2,079 vehicles, while Geo Lah currently offers limousine bookings and parcel delivery via an app.

They join five existing ride-hailing platforms – Grab, Ryde, Tada, Gojek and Zig – which all had their licences to operate revalidated for three years, LTA said in a press release on Dec 23. The new licence period starts on Jan 1, 2025.

The provisional licences for Trans-cab and Geo Lah will enable them to fine-tune their operational capabilities to meet LTA’s regulatory standards for safety and service provisions, the authority said in the press which covered other point-to-point transportation matters.

On the taxi front, those looking to become cabbies will be able to do so more quickly and spend less on the vocational training, under an updated training and licencing process. The revision takes effect on Feb 24, 2025.

LTA said that this was to encourage drivers to consider taxi driving.

It will take 12 hours for a person to complete the training to drive a taxi, down from the current 16 hours.

The time needed to convert someone with an existing vocational licence for ride-hailing services to drive a taxi is also shortened – from eight hours to five. The update follows a curriculum review and update meant to make the training more relevant to taxi drivers, LTA said.

The cost of training and testing to get the taxi driving licence, is reduced from $275 to $250. To convert from a private-hire driver’s vocational licence, the cost is lowered from $145 to $132.50. All fees stated are before the application of the goods and services tax.

The five taxi operators – CityCab, Comfort, Prime, Strides Premier and Trans-cab – have had their licences revalidated for 10 years.

Along with the announcement on the licence holders, LTA also gave updates on the licensing conditions for the operators.

Smaller taxi operators will no longer be required to operate call-booking services, although they can continue to do so.

Call-booking services will continue to be a licencing requirement for Comfort and CityCab, which have the two largest taxi fleets in Singapore, according to LTA’s October data. Comfort has 6,388 taxis, while CityCab has 2,136 taxis.

Comfort and CityCab are part of the ComfortDelGro Group. Their call-booking service is handled by CDG Zig.

Currently, call-booking services have to meet performance targets as part of the licensing requirements for taxi companies. These include the rate that calls are being answered, how long it takes for the dispatched calls to be matched with taxis, and the passenger waiting time for the taxi to arrive.

Trans-cab will be the second taxi operator to venture into the ride-hailing business. The first is ComfortDelGro, which started Zig in 2021.

In July, Grab, which is the largest ride-hailing platform in Singapore, dropped its bid to acquire Trans-cab, after the Competition and Consumer Commission of Singapore made a provisional ruling that the proposed purchase will lead to a substantial reduction of competition in the ride-hailing market.

A spokeswoman for Trans-cab told The Straits Times that the company had been preparing to offer ride-hailing service for “almost 1½ years of preparation” and the application for the licence was made in July.

“The diversification provides a buffer against fluctuations in the traditional taxi market. Ultimately, success in ride-hailing depends on competitive pricing, efficient operations and a commitment to customer satisfaction,” she added.

When asked, the spokeswoman did not give details on Trans-cab’s rail-hailing service, such as how much rides will cost and likely earnings for drivers.

Geo Lah, the other company to receive the one-year provisional licence to offer ride-hailing services, was founded in 2020. Its smartphone application, called Geolah, offers limousine bookings and parcel delivery, on top of ride-hailing services.

Before Trans-cab and Geo Lah, Ryde in 2020 was the last ride-hailing operator to received a one-year provisional ride-hail service operator licence. The following year, it received a full three-year licence.

Operators providing ride-hail services have to display a standardised set of trip information to drivers from Jan 1, 2025. LTA said that this is to make it easier for drivers to compare trips offered across the platforms for drivers who use more than one platform. This includes showing the distance between pick-up and drop-off as well as the amount and method of payment for the driver.

The announced adjustments were made as part of an ongoing review by LTA and stakeholders into the point-to-point transport industry, which covers taxis and ride-hailing services. The authority said that it is aiming to provide an update on the second phase of the review in March 2025.