Latest news with #WalterTheseira
CNA
2 days ago
- Business
- CNA
CNA938 Rewind - With a deadline looming, are you not going to Malaysia without a VEP?
CNA938 Rewind - With a deadline looming, are you not going to Malaysia without a VEP? From July 1, foreign vehicles without Vehicle Entry Permits (VEPs) at Malaysia's land borders with Singapore will be issued summons of 300 ringgit or 91 Singapore dollars. Lance Alexander speaks with Associate Professor Walter Theseira from the Singapore University of Social Sciences (SUSS)' School of Business. 9 mins CNA938 Rewind - The Wellness Hour - A plate of kindness goes a long way For many seniors living alone, a simple meal can feel out of reach. That's where A Good Meal comes in - a student-led initiative from NTU that's serving more than just food. Cheryl Goh speaks with Chua Tze Hean, NTU medical undergrad and founder and Valerie Goh, team member of A Good Meal on how they're bringing warmth, conversation and connection to the lives of elderly Singaporeans, one meal at a time. 18 mins CNA938 Rewind - Eat, Drink, Singapore - Winning Big with Pasta! Elevating pasta on the world stage - fresh off his win as Singapore's Barilla Pasta Champion, Cheryl Goh speaks with Chef Felix Chong, Culinary Director of 1-Group, on his award-winning creation, and what's next as he heads to the Barilla Asia Finals. 17 mins CNA938 Rewind - Mind Your Money - How do smart workspaces shape the future? Hybrid fatigue, shifting priorities, and the pressure to deliver on sustainability and wellbeing: today's workplace looks nothing like it did just a few years ago. So how can companies keep up? Cheryl Goh speaks with Patrick Woo, Director, Human Resources (Asia Pacific) at Steelcase, on how smart, intentional workspace design can boost employee experience, build stronger workplace communities, and support new ways of working. 19 mins CNA938 Rewind - Syaz Smooth – keeping his late brother's memory alive in his music In 'Culture Club', Melanie Oliveiro speaks with Singaporean singer-songwriter-producer Syaz Smooth about his new mini album 'Bersamamu', which means "With You" in the Malay language. Syaz will explain how 'Bersamamu' is a tribute to his late brother and fellow singer-songwriter Shahfiq who died in a traffic accident in 2024 at the tender age of 27. Syaz will talk about the themes he addresses in the EP - grief, love, healing, and remembrance. Discover more Singaporean music and musicians – like Syaz Smooth – at an initiative by the National Arts Council, produced by independent music media company Bandwagon. 32 mins
CNA
3 days ago
- Business
- CNA
Analysis: Are fines the most effective punishment for train disruptions?
SINGAPORE: Public transport operator SMRT faces a S$3 million (US$2.3 million) fine over a major incident on its East-West Line last year. But experts told CNA that in Singapore's context, it would be more crucial to relook the dynamic between operators and the Land Transport Authority (LTA). For example, a question that needs to be asked is who should be responsible for making decisions on the trade-off between reliability and cost effectiveness, said one observer. Their comments came after the LTA and the Transport Safety Investigation Bureau (TSIB) released reports on Tuesday (Jun 3) detailing the factors that contributed to the six-day disruption in September 2024. These included the maintenance schedule for the incident train being extended beyond stipulated intervals. 'I think the more important thing is not the fine, but what will be done at SMRT as well as at LTA to implement improved processes for evaluating maintenance decisions and monitoring reliability,' said Associate Professor Walter Theseira of the Singapore University of Social Sciences' business school. Transport fares and public funds go towards the running of Singapore's trains, and hence "it is not wrong" to seek more cost-effective ways of maintenance, he said. 'But there may need to be more oversight and collaboration between the operator and LTA in making these decisions.' The authority said on Tuesday that since the September incident, it has strengthened oversight of areas such as operators' internal procedures to adjust maintenance schedules. Assoc Prof Theseira added that he did not think operators and their management were motivated by trying to avoid fines. When deciding how big a fine to impose, LTA said it took into consideration the costs that SMRT bore for repairs and providing free bridging buses, regular bus services and shuttle train services. These came up to more than S$10 million. An estimated 500,000 out of 2.8 million train journeys were affected on each day of the disruption. Services were disrupted along nine stations from Boon Lay to Queenstown. Associate Professor Raymond Ong, a transport infrastructure researcher at the National University of Singapore (NUS), said the S$3 million fine was appropriate given the number of stations affected. He noted that a bigger fine was given for an incident in 2015 that took down the entire North-South Line and East-West Line for hours. Past fines for train disruptions and incidents In 2018, SMRT was fined a total of S$1.9 million over the Bishan Tunnel flooding incident in 2017 as well as a separate accident near Pasir Ris station in 2016, which left two SMRT trainees dead. In 2015, SMRT was fined S$5.4 million for Singapore's worst train disruption at the time, which affected 413,000 commuters. This remains the largest fine to date. SMRT was found to be fully responsible for the incident and to have fallen short in maintenance – failing to address water seepage in the tunnel between Tanjong Pagar and Raffles Place stations, for example. In 2014, SMRT was fined S$1.6 million for four incidents that took place over 2013 and 2014, which included SMRT train drivers running red light signals. SBS Transit was fined S$50,000 in 2014 for a 40-minute disruption caused by carelessness during maintenance works at Potong Pasir station. In 2013, both SMRT and SBS Transit were fined a total of S$1.1 million for incidents over 2012 and 2013. SMRT was fined S$860,000 for rail defects on the Circle Line, a safety breach at Ulu Pandan depot, its handling of a trackside fire at Newton Station (which incurred the highest fine of S$300,000) and for launching only three trains –instead of the scheduled four – from Bukit Panjang LRT Depot. SBS Transit was fined S$250,000 for a service disruption on the NEL which led to stranded commuters having to wait in the haze for shuttle bus services. In 2012, SMRT was fined S$2 million for two disruptions in Dec 2011 that affected 221,000 commuters. The effort spent to quickly and safely recover service while minimising disruption to commuters is a key mitigating factor, said Assoc Prof Ong. He said a fine was a 'logical and handy tool' that could be used, but also stressed it was more important for the operator and regulator to learn from the incident and improve maintenance regimes. Electrical engineering expert Teo Chor Kok however said the fine could be higher since there were multiple lapses, though he acknowledged that financial penalties were ineffective in leading to change. Noting that the stipulated overhaul interval for trains was 500,000 km, he questioned SMRT's decision to increase this twice and up to 750,000km a month before the incident. An overhaul refers to a complete tear-down and rebuild to restore a train to an "as-good-as-new" condition. By the time of the incident, the train had logged 690,000km since its last overhaul in 2018. 'We can give (an) engineering error of 10 per cent, but 690,000km is (a gross) management lapse,' said Mr Teo. The extent of damage to the tracks – 46 rail breaks along a 2.55km stretch – signals that the operator did not stop the train when something was wrong, he added. TSIB noted in its report that this was due to staff believing that a high temperature warning was a false one, due to a system error not detecting which train was experiencing the issue. CNA also asked experts whether Singapore could consider Hong Kong's approach, where its train operator was made to give commuters a 50 per cent fare concession for a day due to three separate service disruptions this year. This was on top of a HK$19.2 million (S$3.2 million) fine. Assoc Prof Theseira pointed out that SMRT's S$3 million fine could be used to provide blanket concessions, but in Singapore's case, LTA has already announced that it will go towards helping needy commuters. He added that in Singapore, fare revenues alone do not cover the operating and maintenance costs for public transport operators. 'Reducing their fare revenue directly would just have the effect of later requiring more public funding to ensure operations are sustainable,' he said. This is why proposals to cut fares or stop fare increases don't produce the effect of "punishing" the operator, said Assoc Prof Theseira. 'In the end, public subsidies are required, so it is actually punishing the taxpayer.' ON THE OVERHAUL REGIME Assoc Prof Theseira said the findings on the causes of the incident pointed to a failure to fully understand the risks of adjusting the maintenance and overhaul regime of the train's axle boxes. One of these boxes had failed and dropped from the train and onto the tracks. LTA gives operators flexibility to make tweaks according to operation experience and engineering analysis because operating conditions differ, and the manufacturer's recommendations may not necessarily be appropriate, he said. Assoc Prof Ong noted that SMRT was in the process of overhauling its first-generation trains when the incident took place. 'It's unfortunate ... because they are already overhauling, and they are all queuing up to be overhauled.' President of SMRT Trains Lam Sheau Kai said on Tuesday that the operator's overhaul regime had served it well over the past 38 years. 'What may have caught us off-guard this time was the convergence of factors - delays in new train deliveries due to COVID-19, our efforts to balance and adjust overhaul schedules, and the lag in receiving critical spare parts.' He added that for 'rare, black swan events like COVID-19', it was important that SMRT and LTA come together to 'reassess collectively'. LTA has said that going forward, it will require rail operators to inform them of extensions to overhaul intervals. Assoc Prof Theseira said LTA might have been in a better position to question and oversee SMRT's decisions on maintenance schedules, though he acknowledged that the relationship was complex - because of the operator's need to, again, be both reliable and cost-effective. The operator is expected to take steps to manage costs, but it may be that LTA has more expertise and responsibility to make the decision together with SMRT, he said. 'We should certainly look at whether there was open communication between the operator and LTA on the operating constraints given the pandemic supply chain shortages and (the) need to keep operating the (first-generation) KHI trains,' he said. If SMRT had shortened the overhaul interval for the defective axle box, it could have prevented the entire incident - but there would have been costs involved, and not just monetary ones, said Assoc Prof Theseira. Fewer trains would be available for operations due to maintenance, meaning reduce capacity during peak periods. 'Decisions that would have avoided this would have had consequences of their own, that would also affect the public," he noted.
CNA
29-05-2025
- General
- CNA
Demerit points for speeding are a stronger deterrent than fines, observers say
SINGAPORE: Increasing the number of demerit points as a penalty for speeding is a stronger deterrent than higher fines, given the higher incomes in Singapore, observers said on Thursday (May 29). harsher penalties for speeding will take effect from Jan 1 next year. A motorist caught exceeding the speed limit by 20kmh or less will face six demerit points, up from four. The composition fine will also increase by S$50 (US$39), to S$200 for light vehicles and S$250 for heavy vehicles. The penalties increase for those who exceed the speed limit more. Those who exceed the limit by 40kmh can be prosecuted in court, and those who exceed it by 50kmh or more will receive 24 demerit points, resulting in an immediate suspension of their licence. Associate Professor Walter Theseira from the Singapore University of Social Sciences' School of Business said demerit points are "more important" given that incomes are rising in Singapore. 'No matter how much money you make, getting a critical number of demerit points will result in a driving suspension, which is something that deters even very rich drivers,' he said. 'I expect the demerit point increase to actually be more important for many drivers in Singapore.' Mr Bernard Tay, chairman of the Singapore Road Safety Council, echoed that view. 'You go out to eat, another S$100 is nothing nowadays,' he said. The demerit point system is likely more effective since people would be concerned about that. People get a licence because they want to drive, and that can be taken away due to speeding offences, he added. 'What (they) want, you take it away, it's the most painful. Money (can be earned) back.' He also noted that a licence can also be revoked in serious cases, which would mean the driver has to take a driving test again. 'The fear of losing their licence may be far more sobering than a fine,' said Mr Jonathan Wong, founder of Tembusu Law. The demerit points accumulate and each violation brings the driver closer to suspension or revocation, which could disrupt their daily routines and livelihoods, he said. RIGHT TIME TO INCREASE PENALTIES Mr Tay added that the move to introduce stiffer penalties is timely, as speeding violations have increased in recent years. In 2024, there were 191,931 cases, a jump of 64.8 per cent compared to the previous year. Part of the reason may be that more cameras have been deployed, but either way, speeding puts road users at risk, he said. The police said in their annual road traffic statistics report that 33.1 per cent of fatal accidents last year were due to speeding, up from 24.4 per cent in 2023. 'It's the right time to send a message,' Mr Tay said, adding that education can only go so far, and the last resort is to change the rules to make the penalties tougher. As roads get busier, the law has to adapt and stay relevant, said Mr Wong of Tembusu Law. "I think the increase in fines and demerit points aims to strike a balance; firm where it needs to be, especially for high-risk behaviours like speeding, but still trying to be grounded in fairness," he said. Assoc Prof Theseira also said it was important to increase fines even if demerit points are more important. Low financial penalties when incomes are high are less effective, especially if they are outweighed by the benefits of breaking the rules, he said. 'For example, low parking fines are ineffective if it is cheaper to take a chance parking illegally than to pay for expensive parking. So revising the fine level upwards periodically is necessary to keep pace with rising incomes.' He noted that in some countries such as Finland, fines are pegged to the income of the driver. 'Richer people pay more for the same offence.' DRIVING WITH MORE CAUTION Drivers previously caught speeding said the increased penalties would make them more careful about staying within the speed limit. "I'll definitely be more careful. Increasing the number of demerit points and having harsher fines will ensure people are more careful," said 57-year-old Mr Gopal. He was caught driving 12kmh over the speed limit near Thomson Road and initially fined over S$100. The fine was dismissed after he appealed, as he had a "clean record', the real estate agent said. Another driver, Mr Ang, who once exceeded the speed limit by less than 20kmh at Ang Mo Kio, said the new regulations are good for those who are new on the road and taxi drivers. "The new regulations are good for new drivers because a lot of them are reckless. Or those old taxi uncles. They drive long hours and most of the time they're not cautious on the road," said the 30-year-old salesman, who has been driving for almost a decade. He was caught speeding while rushing between back-to-back appointments but was let off with a warning. Since then, he has become more cautious, especially now that he knows where the speed cameras are located. He also tries to spot Traffic Police officers using cameras for anti-speeding operations. "I roughly know where those snipers will be … so I will slow down." However, not all drivers have been able to avoid fines. Ms Marine was caught driving over 10kmh above the speed limit at the Bartley flyover while sending her son to school. She was fined $200 and penalised with 12 demerit points. Getting caught once was all it took to make sure she did not exceed the speed limit again, and Ms Marine believes the harsher penalties will deter more speeders from pushing the limit, particularly in school zones. 'Most people who drive should have no problem in paying the money, but if they clock up all the demerit points, it will forfeit their right to drive which brings a lot of inconvenience in their daily life,' the 41-year-old business owner said.
Straits Times
11-05-2025
- Politics
- Straits Times
‘Natural that voters want it all': Why specific estate plans still mattered in GE2025
The results of GE2025 show that a considered town plan and municipal management chops have become baseline expectations for many voters here. ST PHOTO: NG SOR LUAN News analysis 'Natural that voters want it all': Why specific estate plans still mattered in GE2025 SINGAPORE – More sheltered walkways and cleaner estates may appear as rather provincial concerns, but the results of the 2025 General Election show that a considered town plan and municipal management chops have become baseline expectations for many voters here. Much has been written about how the Singaporean voter has become more discerning in assessing the calibre, credibility and ground presence of candidates seeking election, but understated is his desire for his neighbourhood to continue being improved, with a well-run town council being a given. While the national swing towards the PAP can broadly be seen as an endorsement of its call to assemble a strong leadership team in the face of external challenges, analysts noted how the ruling party got down to brass tacks when it came to constituency-level report cards, in terms of specific projects delivered and those to come. Conversely, political parties that glossed over municipal plans or were perceived to have a credibility gap in carrying out said plans suffered at the polls. Associate Professor Walter Theseira noted that while all opposition candidates would claim the ability and willingness to confront the PAP in Parliament, the emphasis on town council matters during the campaign reminded the public to consider the credibility and quality of each candidate in delivering on the basics. 'It is natural that voters want it all: They want quality representation of their views in Parliament as well as effective ground management,' said the Singapore University of Social Sciences economist. He added: 'Town council management can't be separated from the overall quality of the candidate as well as the party backing them.' Contributing factor in SMC outcomes Singapore Management University (SMU) law don Eugene Tan said municipal issues will continue to feature at the local level of each general election, even if in the grander scheme they do not weigh as heavily on voters' decisions as other issues. This was why the PAP took pains during – and even before – the hustings to tell residents in the six new single-member constituencies created ahead of the election that their estates would continue to be well taken care of. For instance, under this group representation constituency-plus-one narrative, residents in Jalan Kayu SMC continue to be part of Ang Mo Kio's 'extended family' while those in Queenstown SMC are 'part of our team of brothers and sisters' in Tanjong Pagar GRC, according to PAP candidates. This narrative was most clearly articulated when Health Minister Ong Ye Kung urged voters to keep Ms Poh Li San part of the 'Sembawang family' by voting for her over Singapore Democratic Party chief Chee Soon Juan. During campaigning, Mr Ong – who anchors neighbouring Sembawang GRC – said Dr Chee did not want Sembawang West SMC to be part of the bigger Sembawang family, as this would be politically disadvantageous for Dr Chee. This came after Dr Chee criticised Mr Ong's plan to assign Woodlands Galaxy Community Club – which falls just outside Sembawang West's boundaries – to the new SMC. 'Better for him that Sembawang West, you become a lonely island, cut off from the rest of Sembawang Town,' Mr Ong said at a PAP rally. Ms Poh edged out Dr Chee with 53.19 per cent of the vote. Professor Tan said that having an SMC pegged to a GRC is meant to assure voters that estate management and improvement will be properly taken care of. This is a plus point but not a game changer, and the election results validated MPs who had walked and worked the ground over the past electoral cycle, he added. This was most evident in the new Queenstown and Jurong Central SMCs, where the vote shares of the two incumbent PAP MPs – Mr Eric Chua and Mr Xie Yao Quan repectively – exceeded 80 per cent, albeit against smaller opposition parties. Another example was the rematch in Bukit Panjang SMC, where PAP stalwart Liang Eng Hwa bettered his result compared with the close fight in 2020 when he first stepped into the single seat. Mr Liang took 61.41 per cent of the vote this round, against SDP chairman Paul Tambyah. Dr Tambyah said during the hustings that estate projects and services would continue even if SDP candidates prevailed over their PAP opponents. This drew a response from Mr Liang who said Dr Tambyah was 'naive' to think that constituency projects would continue on 'autopilot' under a new MP. This was as MPs play an important role in advocating for residents as well as working with the Government to bring needed projects to the constituency, he argued. Municipal record helped WP fend off jabs Meanwhile, the WP's ability to consolidate and improve its position this election suggests that voters agreed it was doing a good job in town council management, as well as politically, said Prof Theseira. The WP made sure to highlight its performance in recent town council report cards to tell voters it had overcome the difficulties it faced in Aljunied after 2011 – which resulted in long-running civil suits that were settled in 2024 – and that towns under its charge were as competently managed as those under the PAP. During the campaign, the WP's He Ting Ru had said Sengkang Town Council, which she chairs, achieved the top (green) banding for estate cleanliness in the Ministry of National Development's town council management report since the WP took over management of the town. A day later, Senior Minister Lee Hsien Loong remarked at a doorstop in the WP-held Aljunied that 'yes, all the markers are green, but some markers are greener than others'. In later rally speeches, the PAP took aim at the WP's estate management in Sengkang GRC, alleging that basic standards had slipped. Prof Theseira said the WP's vote share showed that it was able to shrug off the narrative that it was not able to competently and transparently manage town councils. Conversely, voters appeared to have penalised opposition parties that did not put enough emphasis on competent town management. PSP chief Leong Mun Wai, who was one of five candidates who lost in West Coast-Jurong West GRC, said the main role of an MP is to debate national policies and not be estate managers who are interested only in local issues. He was responding to a comment by his PAP opponent, Minister for National Development Desmond Lee, who said residents should ask contesting parties about their plans for the constituency. SMU's Prof Tan called the PSP's approach 'untenable' and that its lack of sensitivity to municipal concerns may have contributed to its poor showing. '(PSP) seemed to have ignored voters' concerns about estate management and improvement… For the voters, if the MPs are not going to take care of their estates, who will?' he asked. Mr Leong's PSP team lost to Mr Lee's PAP slate, which polled 60.01 per cent of the vote this round, up from 51.68 per cent in 2020. Ground knowledge may have also been why Mr Darryl Lo, an independent candidate and unknown before the election, managed to secure 23.47 per cent of the vote in Radin Mas SMC, compared with People's Alliance for Reform's Kumar Appavoo's 7.36 per cent. While it was Mr Kumar's fourth general election, Mr Lo grew up and lived in Radin Mas, and ran a campaign that had both policy ideas and estate-level suggestions, including cleanliness issues in the Bukit Purmei area and to have a dog run in the constituency. Mr Lo's vote share beat out the performance of many of the smaller opposition parties in single seats, and contributed to independent candidates turning in their best election results here in over five decades. 'One can read much into how voters preferred a young but well-qualified, on paper, candidate in Radin Mas to an opposition candidate who had contested the area multiple times prior,' said Prof Theseira. Join ST's WhatsApp Channel and get the latest news and must-reads.
Singapore Law Watch
30-04-2025
- Automotive
- Singapore Law Watch
Will ComfortDelGro win the point-to-point 2.0 race against Grab?: Opinion
Will ComfortDelGro win the point-to-point 2.0 race against Grab?: Opinion Source: Business Times Article Date: 30 Apr 2025 Author: Tay Peck Gek Studies show that people who choose to drive taxis are those who want to devote more time to driving for a living. Grab's entry into Singapore's taxi market is likely to give the leading incumbent ComfortDelGro : C52 -0.65% a run for its money. Studies have shown that people who choose to drive taxis are those who want to devote more time to driving for a living. Private-hire car drivers, on the other hand, are a mix of full-time drivers and part-timers who also use their cars for personal purposes. Moreover, taxi drivers are permitted to provide ride-hailing trips, while private-hire car drivers are not allowed to take street-hail passengers. Some market watchers – from a transport economist to a taxi competitor – see Grab's street-hail operator licence as a way to secure a reliable supply of drivers. The way Professor Walter Theseira sees it, Grab is 'not interested in street-hail (rides) under the current business model'. After all, he points out, 'platforms and taxi operators do not earn any commission'. What's in it for the platform operator then? Grab in 2024 abandoned plans to acquire taxi company Trans-cab after failing to obtain the all-clear from the competition watchdog. The proposed Trans-cab purchase was Grab's third attempt at buying a taxi company in Singapore. In 2017, there were talks to buy SMRT's taxi fleet, but the deal fell through. In 2022, its discussion with Prime Taxi, the smallest cab operator in the Republic, did not materialise into a transaction either. Grab gears up for recruitment Shortly after being shown the green light to provide taxi services, Grab sprang into action to recruit taxi drivers. It dangled 'early-bird' rental offers and asked applicants – in what it touts as an exclusive deal – to make a deposit of S$50 for priority access to renting from GrabCab. Those without a taxi driver's provisional licence (TDVL) will get Grab's sponsorship for the course to earn it – with terms and conditions attached. The fund to buy Trans-cab – said to be around S$100 million – will now likely serve as the financial firepower to incentivise drivers to jump ship from other taxi operators or entice those with a TDVL but are inactive to rejoin the industry. As at February, there were 90,556 holders of a TDVL compared to a taxi population of 12,941, statistics from the Land Transport Authority showed. Assuming there is a relief driver for half of the taxi population, that would bring the pool of active taxi drivers in Singapore to about 20,000. This means that there could be some 70,000 people that hold TDVLs but do not drive taxis. Or, as a TDVL allows a holder to drive a taxi or a private-hire car, some of these could be private-hire car drivers. ComfortDelGro's fleet of 8,255 taxis under the Comfort and CityCab brands means the Singapore mainboard-listed transport behemoth has about 64 per cent share of the market. Assuming Grab wants to build an initial fleet of 800 taxis – the minimum required by the authority – and that the source of drivers would be from the incumbents proportionate to their market share, this could see ComfortDelGro lose about 512 drivers. But if Grab builds a fleet size of 2,000 – Trans-cab's taxi population at the time the earlier acquisition was proposed – then the number of taxi drivers exiting ComfortDelGro could rise to 1,280. Of course, not all the drivers that Grab wants to recruit would be from the incumbents. However, the majority are likely to be. Their dwindling numbers in recent years as well as the flexibility and lower cost of being private-hire car drivers substantiate this proposition – unless there is a spike in Singapore's unemployment rate. A back-of-the-envelope calculation, using an attrition of 512 to 1,280 drivers and a conservative daily rent of S$100, ComfortDelGro's rental loss alone – not including ancillary revenue such as those from fuel sales and platform fees – would probably amount to S$18.4 million to S$46 million. This is hardly damaging. The transport powerhouse reported S$748.7 million in revenue and S$135.3 million in operating profit from the taxi and private-hire vehicle segment for FY2024, without breaking down by geography and sub-segment. The taxi business is ComfortDelGro's most lucrative transport segment, giving it an operating profit margin of 18.1 per cent for FY2024. Its two other transport segments – public transport and other private transport – each only had a meagre operating profit margin of 4.2 per cent. One would expect ComfortDelGro not to cede ground to Grab easily. In terms of rental rates, benefits and incentives, it is likely to match, if not outdo, its competitor to protect this source of revenue This will be the second round of the face-off, after Grab drew taxi drivers to its platform with generous incentives in the early days of ride-hailing. In the short term, this could mean rising costs for both operators. But there is more at stake for ComfortDelGro to defend its turf than for Grab to make inroads into the taxi market. If ComfortDelGro is not able to keep its taxi population at a certain level, its network effect in terms of drivers and passengers will decrease and it will also lose economies of scale. By then, the impact to ComfortDelGro could be far greater than the initial hit of S$46 million. While ComfortDelGro might be competitive in dishing out carrots, it also has to significantly rev up its technology prowess – which is seen as Grab's strength. One would imagine that the competitor could leverage technology to tackle the imbalance in demand and supply by identifying areas or time of the day where passenger demand is high and unmet by private-hire car drivers, and deploying taxi drivers to meet such demand. This will boost cabbies' earnings and passenger satisfaction, in turn creating a virtuous cycle. Source: The Business Times © SPH Media Limited. Permission required for reproduction. Print
